March 29, 2017
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Amazon now owns Souq.com, the “Amazon of the Middle East

It’s official–Amazon now owns Souq.com, the biggest e-commerce platform in all of the Middle East.

This did not come as a surprise to many, as rumors have been flying around for months that the two giants have been attempting to clinch a deal that would strengthen both of their hold in the e-commerce world.

Amazon did not arrive to this acquisition without competition. Some of the names that were in the running for the Souq.com acquisition include Mohamed Alabbar of Emaar Malls, who has then turned his attention to setting up Noon.com; and Majid Al Futtaim, the company that owns the popular UAE mall chain.

What does this mean for both Amazon and Souq.com?

For one, Amazon will now have a steady foothold in the Middle Eastern online retail sector. Souq.com already has a stable payment and order fulfillment system, with an online marketplace that has a considerable following.

Souq.com will see expansions in terms of delivery and logistics. Now that it’s owned by Amazon, new management strategies will be put in place as well as new team members.

The Middle East is still an untapped market, but as more and more people are becoming more used to making online purchases, the 2% market share of online retail could grow exponentially now that Souq.com is owned by the e-commerce entity that started it all.