Over the past year the Middle Eastern e-commerce market has seen exponential growth. With sites like Ounass and The Modist setting the bar high following their entry into the market, the announcement of Noon.com and the unprecedented news that Mohamed Alabbar had acquired a 40% stake in Yoox Net-a-Porter to bring the famed fashion site to our style-savvy shores, the world is finally taking notice of the buying power of the region.
And today, after months of speculation, it has been announced today that Amazon will acquire Dubai-based platform Souq.com.
"Amazon and Souq.com share the same DNA - we're both driven by customers, invention, and long-term thinking. Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers," Russ Grandinetti, the senior vice president, international consumer, said in a release.
The acquisition is set to allow Souq.com to expand its offerings and capabilities with the backing of a major player in the e-commerce game. It also marks Amazon's first foray into the local market.
The US-based site, which also owns Shopbop, will reportedly complete the acquisition before the year's end.