Amazon has reached an agreement to acquire SOUQ.com, an e-commerce leader in the Middle East. Amazon is paying about $650m for the company, according to industry sources. The deal was closed a day after Emaar Malls, the operator of Dubai's biggest mall, made an offer of $800m for Souq.
SOUQ.com is the largest online retail and marketplace platform in the Arab world, featuring more than 8.4 million products. The company claims that it attracts over 45 million visits per month, with localized operations in the KSA, UAE and Egypt.
Management consulting firm, A.T. Kearney expects e-commerce in the Gulf region to quadruple from 2015 to 2020, to $20 billion. Joining the Amazon family will enable SOUQ.com to continue growing while working with Amazon to bring even more products and offerings to customers worldwide.