Amazon Souq acquisition : US online retail giant to buy Middle East online shopping site

Amazon Souq acquisition news : Ending days of speculation, e-commerce giant Amazon has finally announced its acquisition of Souq.com, a well-known online retailer in the Arab World.

Amazon Souq Acquisition Details

While the acquisition price agreed by the parties hasn’t been revealed, one suspects it could be over the $800 million that was offered by Dubai-based Emaar Malls which confirmed its bid to buy the Middle East online shopping site on March 27. However, the shareholders of Souq.com preferred to go with Amazon rather than Emaar Malls.

The very next day, Amazon finally confirmed its acquisition of Souq.com.

Souq expects to expand its growth in partnership with Amazon while also working together with it to provide a much broader product inventory for worldwide customers.

Amazon’s Russ Grandinetti with Souq’s Ronaldo Mouchawar. Photo courtesy of SOUQ.com

Both companies are said to have a common DNA that is driven by driven by customers, invention, and long-term thinking is what Russ Grandinetti, Amazon Senior Vice President, International Consumer has to say on the Amazon Souq acquisition.

Adding further on the acquisition of the Middle East online shopping site, Russ Grandinetti said: “SOUQ.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We’re looking forward to both learning from and supporting them with Amazon technology and global resources. And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East.”

Commenting on the Amazon Souq acquisition, Souq CEO and co-founder Ronaldo Mouchawar said: “Joining the Amazon family will enable us to drive further growth, benefit from their technological investment, offer an even wider product selection through worldwide sourcing, deliver an enhanced customer service experience, as well as continue Amazon’s great track record of empowering sellers locally and globally.”

With localized operations across the UAE, Saudi Arabia and Egypt, Souq is a leader in online retail and marketplace platform in the Arab World. Founded in 2005, Souq has earned the name of being the Amazon of the Middle East.

It started off as an auction website and six years later, transformed itself into an online shopping site in the lines of its acquirer Amazon.com. Souq has a workforce between 2500-3000.

The Amazon Souq acquisition is likely to be completed in the current year, subject to closing conditions.