Why Amazon Acquired the Middle East’s Largest E-Tailer

Amazon said on Tuesday that it has agreed to purchase Souq.com, the largest e-tailer in the Middle East.

Terms of the deal were not disclosed.

 The news came one day after state-backed construction concern Emaar Malls PJSC in the United Arab Emirates made public its $800 million offer for Souq.com on the Dubai Financial Market, according to media reports.

“Amazon and Souq.com share the same DNA — we’re both driven by customers, invention and long-term thinking,” Russ Grandinetti, Amazon’s SVP for international consumers, said in a statement.

“This acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region,” said Souq.com Chief Executive Officer and co-founder Ronaldo Mouchawar. “By becoming part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers.”

Souq.com showcases more than 8.4 million products spanning 31 categories, including electronics, apparel, shoes, health and beauty, household goods and baby. It attracts more than 45 million visits monthly and has operations in Saudi Arabia, the United Arab Emirates and Egypt.

The deal is expected to close this year.

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