Amazon deal to buy Souq.com a ‘coming-of-age’ of Mideast ecommerce

The logos of Souq.com and Amazon are seen at Souq.com office in Dubai, United Arab Emirates on Tuesday. (Reuters)
Updated 29 March 2017
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Amazon deal to buy Souq.com a ‘coming-of-age’ of Mideast ecommerce

DUBAI: Amazon’s acquisition of online retail site Souq.com marks a “coming-of-age” of the Middle East ecommerce sector, technology experts said.
Souq plans to expand its workforce and operations after the US market leader clinched a deal to buy 100 percent of the Middle East player, executives from both firms said.
Amazon had walked away from talks with Souq.com earlier this year, but it reportedly came back with an offer of $650 million.
Amazon and Souq.com said earlier on Tuesday they had agreed on the takeover, despite an eleventh-hour bid by Dubai billionaire Mohamed Alabbar’s Emaar Malls to cut in with an offer it said was worth $800 million.
Executives have not disclosed the value of the Amazon deal, which adviser Goldman Sachs called “the biggest-ever technology M&A transaction in the Arab world.”
Sources with knowledge of the takeover said Amazon was paying less than Emaar’s offer, making it lower than Souq.com’s $1 billion valuation when it sought funding last year.
One source said Souq.com would have broken an exclusivity agreement with Amazon if it accepted Emaar’s bid at this stage.
“Amazon is a great fit with us. We have a lot of common values and it is all about innovation, technology and the type of customer experience and thinking that Amazon has,” Souq.com Co-Founder and Chief Executive Ronaldo Mouchawar told Reuters.
Technology expert Matthew Reed, practice leader for the Middle East and Africa at Ovum in Dubai, said that the deal was significant.
“The Amazon deal to buy Souq.com marks a coming-of-age moment for e-commerce in the Middle East,” Reed told Arab News.
“Currently, e-commerce in the region is less advanced than might be expected the given the relative affluence and high levels of broadband connectivity in the GCC states. But the arrival in the region of a global leader such as Amazon should help to develop and grow the e-commerce sector here.”
The deal will help grow an already major player in the Middle East online retail sector. Alabbar himself has advanced plans for the launch of Noon, slated as a $1 billion portal that will have a big initial focus on fashion and luxury products.
“Assuming the deal goes ahead, Noon will face tougher competition than it might have been expecting, as in Amazon it will be up against what many see as the world’s leading e-tailer,” Reed said.
P.K. Gulati, a Dubai-based technology investor, said that the Amazon-Souq deal was “awesome”.
“I think it’s great for the ecosystem — it’s great as a role-model deal, in the sense of people thinking that they can do it,” Gulati – who has made about 15 investments worldwide, mainly in Silicon Valley and India – told Arab News.
It was also remarkable given Amazon’s track record in business, he added. “Amazon has a reputation of not buying companies — rather, of making them.”
Gulati said that Alabbar’s unsuccessful 11th-hour bid for Souq simply came too late.
“Putting a counter-bid on a Friday was in my opinion probably too late… I think the deal was already done already by then.”
Noon may become a future player in the space, but such sites typically take some time to take off, Gulati added. It typically “takes three to five years for a platform to stabilize and become something which people like,” he said.
Souq.com, founded in 2005, stocks 8.5 million items on its website and generates about 50 million monthly visits, the site’s CEO Mouchawar told Reuters. It delivers to the six Gulf Arab states and Egypt.
Mouchawar said there was scope to expand the business with Amazon and to increase the 3,000-strong workforce to boost Souq.com’s reach, without saying by how many it would rise.
“We will continue to invest in our segment and grow our markets,” he said at Souq.com’s Dubai headquarters.
Despite its young, tech-savvy population, shoppers in the Middle East still prefer to shop in stores. Online retail accounts for less than 1 percent of total sales in the Middle East, according to market researcher Euromonitor International.
“We want to figure out how to grow the team here. If we’re going to grow the business we have to grow logistics, we have to grow technical development,” Amazon Senior Vice President Russ Grandinetti said.
In a deal document seen by Reuters, Goldman said the acquisition would accelerate Amazon’s entry into “attractive Middle East countries with significant growth potential.”
After the Amazon takeover, Middle East consumers will be able to buy products available on Amazon.com through Souq.com, and Middle East merchants will have access to a wider market via Amazon’s network.
The acquisition is expected to close later this year.
Souq.com’s current shareholders include South Africa’s Naspers Ltd. and Tiger Global Management.
The Amazon deal was backed by the Dubai government, which wants to use technology to expand its regional retail footprint.
Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum said in a statement it showed the city state’s position “as a regional and global hub for the world’s biggest and leading organizations.”
Amazon’s acquisition of Souq.com is seen as significant for the Middle East’s nascent tech sector.
“This is effectively a vote of confidence in the region. You have a major American company going into a digital company in the region,” said Fadi Ghandour, founder Dubai-listed logistics firm Aramex and a prominent venture capitalist in the Middle East.
— With Reuters


More Sudanese refugees fleeing as far as Europe, UN refugee agency says

Updated 6 sec ago
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More Sudanese refugees fleeing as far as Europe, UN refugee agency says

  • Olga Sarrado, UN refugee agency spokesperson, told a press briefing in Geneva that some 484 Sudanese had arrived in Europe in January and February, up 38 percent from the same period last year
GENEVA: Over a thousand Sudanese refugees have reached or attempted to reach Europe in early 2025, the United Nations’ refugee agency said on Friday, citing growing desperation in part due to reduced aid in the region.
Some 12 million people have been displaced by the two-year conflict between the Sudanese army and the paramilitary Rapid Support Forces that has fueled what UN officials call the world’s most devastating aid crisis.
While some have recently returned home to Khartoum, millions of others in neighboring countries like Egypt and Chad face tough choices as services for refugees are being cut, including by the United States as part of an aid review.
Olga Sarrado, UN refugee agency spokesperson, told a press briefing in Geneva that some 484 Sudanese had arrived in Europe in January and February, up 38 percent from the same period last year.
Around 937 others were rescued or intercepted at sea and returned to Libya — more than double last year’s figures for the same period, she added.
“As humanitarian aid crumbles and if the war does not abate, many more will have little choice than to join them,” she said.
Migrant deaths hit a record last year, the UN migration agency said, with many perishing on the Mediterranean crossing which is one of the world’s most dangerous.

UN: 36 Israeli strikes in Gaza killed ‘only women and children’

Updated 56 min 58 sec ago
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UN: 36 Israeli strikes in Gaza killed ‘only women and children’

  • UN rights office spokesperson warns the military strikes across Gaza were ‘leaving nowhere safe’
  • Israel has said its troops are seizing ‘large areas’ in Gaza and incorporating them into buffer zones cleared of their inhabitants

GENEVA: The United Nations on Friday said it analysis of 36 Israeli strikes in Gaza showed only women and children were killed and decried the human cost of the war.

The UN rights office also warned that expanding Israeli evacuation orders were resulting in the “forcible transfer” of people into ever-shrinking spaces in the war-ravaged Palestinian territory.

Spokeswoman Ravina Shamdasani warned the military strikes across Gaza were “leaving nowhere safe.”

“Between 18 March and 9 April 2025, there were some 224 incidents of Israeli strikes on residential buildings and tents for internally displaced people,” she told reporters in Geneva.

“In some 36 strikes about which the UN Human Rights Office corroborated information, the fatalities recorded so far were only women and children,” she said.

“Overall, a large percentage of fatalities are children and women, according to information recorded by our Office,” she added.

Shamdasani cited an April 6 strike on a residential building of the Abu Issa family in Deir al Balah, which reportedly killed one girl, four women, and one four-year-old boy.

She highlighted that even the areas where Palestinians were being instructed to go in the expanding number of Israeli “evacuation orders” were also being subjected to attacks.

“Despite Israeli military orders instructing civilians to relocate to the Al Mawasi area of Khan Younis, strikes continued on tents in that area housing displaced people, with at least 23 such incidents recorded by the Office since 18 March,” she said.

Shamdasani referred to a March 31 order by the Israeli military covering all of Rafah, the southernmost governorate in Gaza, followed by a large-scale ground operation.

Israel has said its troops are seizing “large areas” in Gaza and incorporating them into buffer zones cleared of their inhabitants.

“Large areas are being seized and added to Israel’s security zones, leaving Gaza smaller and more isolated,” Israel’s Defense Minister Israel Katz said Wednesday.

“Let us be clear, these so-called evacuation orders are actually displacement orders, leading to displacement of the population of Gaza into ever shrinking spaces,” Shamdasani said.

“The permanently displacing the civilian population within occupied territories amounts to forcible transfer, which is a grave breach of the Fourth Geneva Convention, and it is a crime against humanity.”


WHO: Medicine critically low due to Gaza aid block

Updated 11 April 2025
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WHO: Medicine critically low due to Gaza aid block

  • Lack of medicine making it hard to keep hospitals even partially operational

GENEVA: Medicine stocks are critically low due to the aid block in Gaza, making it hard to keep hospitals even partially operational, the World Health Organization said on Friday.
“We are critically low in our three warehouses, on antibiotics, IV fluids and blood bags,” WHO official Rik Peeperkorn told reporters in Geneva via video link from Jerusalem.


Yemen ‘not a battleground for settling scores,’ says top government official

Updated 11 April 2025
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Yemen ‘not a battleground for settling scores,’ says top government official

  • Brig. Gen. Tariq Mohammed Abdullah Saleh calls for stronger support for Yemeni forces on the ground to restore balance

DUBAI: Yemen is “not a battleground for settling scores, nor part of any external compromises,” a top government official told Asharq Al-Awsat in an exclusive interview.

Brig. Gen. Tariq Mohammed Abdullah Saleh, a member of Yemen’s Presidential Leadership Council with vice-presidential rank, further emphasized that diminishing the country to a pawn between powerful nations engaged in political play undermines its sovereignty and regional security.

“The world would be making a mistake by accepting Yemen as a bargaining chip in Iranian negotiations,” said Saleh, who also heads the Political Bureau of the National Resistance. He also emphasized Yemen’s strategic importance to global shipping routes.

Saleh has remained largely out of public view since the US intensified its air campaign against the Iran-aligned Houthis to stop the threat they pose to civilian shipping and military vessels in the Red Sea and Gulf of Aden.

He further warned that keeping Yemen “a base for the Iranian Revolutionary Guard” threatens not only Yemenis but also regional and international interests.

But achieving stability in the conflict-ridden country hinges on supporting a national state rooted in constitutional rule and genuine popular consensus, not on short-term geopolitical deals, Saleh added.

He called for stronger support for Yemeni forces on the ground to restore balance, not as a tool for escalation, but because it is a national imperative to protect civilians and preserve hard-won gains.

He said the Yemeni government was in ongoing coordination with international partners and the Saudi-led coalition backing legitimacy in Yemen to secure further assistance for the national struggle.

Cooperation with regional and international partners to bolster the country’s coast guard, particularly in the Red Sea, a strategic artery for global trade, also continues, the Yemeni official said.

Maritime security cannot be separated from national sovereignty, and defending sea lanes was integral to restoring state authority on land and at sea, Saleh said.

On achieving peace in Yemen, Saleh said: “There is no meaning to any settlement that does not subject the Houthis to the Yemeni constitution and the rule of law.” He discounted any notion that the militia group could be accommodated outside a constitutional framework.

“Peace cannot be granted to a group that rejects the state,” he said. “It is forged when the state regains the capacity to enforce the law and protect its citizens.”

For Saleh, forging a peace agreement with the Houthis — whom he describes as a bloodthirsty group with no commitment to national frameworks and an ideology rooted in an enemy state — was virtually nonexistent.

He accused the Houthis of placing their leadership and institutions tied to Iran’s Revolutionary Guard Corps above Yemen’s state institutions.

“Governance is about managing people’s affairs based on shared frameworks,” Saleh said. “The Houthis do not abide by any of that.”

Saleh has put direct blame on Iran for perpetuating the conflict through its armed proxies, keeping Yemen hostage to violence and rebellion, although Tehran has continually denied its involvement.

Saleh also acknowledged the challenges facing the Presidential Leadership Council, and described the internal disagreements as “natural,” given the complexity of the crisis in Yemen.

“In the end,” he said, “what unites us is greater than any differences.

“Disagreements are natural in any leadership body, particularly in exceptional conditions like Yemen’s,” he said. “But more important is our ability to navigate this diversity and divergence while remaining committed to the national interest.”

 


From Dubai to Osaka to Riyadh: Expos mark decade of global dialogue, says UAE official

Updated 11 April 2025
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From Dubai to Osaka to Riyadh: Expos mark decade of global dialogue, says UAE official

  • UAE, Japan, and Saudi Arabia expos each bring distinct strengths and perspectives, says UAE official
  • Expo 2025 Osaka, Kansai will run from April 13 to Oct. 13

DUBAI: The move of expos from Dubai to Osaka and soon to Riyadh presents a “unique opportunity to shape a decade of global engagement” in the Middle East and Asia, according to Shihab Al-Faheem, the UAE pavilion commissioner general.

The sequence of the three locations “offers continuity for themes such as innovation, sustainability, and cultural dialogue,” Al-Faheem said in an interview with Arab News Japan.

“It also strengthens connections between our countries. The UAE, Japan, and Saudi Arabia each bring distinct strengths and perspectives,” he added. “By working together through these global platforms, we can create long-term partnerships that deliver meaningful outcomes for people and the planet.”

Al-Faheem, who is also the UAE’s ambassador to Japan, said the Osaka-Kansai Expo this year carries special meaning for the Gulf country.

The UAE’s first expo journey began in Osaka more than five decades ago, and the commissioner-general explained that returning to Japan was “an opportunity to continue engaging with the world and to contribute to shaping a future grounded in cooperation and collective progress.”

As the baton was passed from Dubai Expo 2020 to Osaka, Al-Faheem said the most important insight the UAE valued was that of creating experiences that are immersive, inclusive and people focused.

“We also learned that strong logistical planning and a flexible, responsive approach are essential to hosting a successful expo,” he told Arab News Japan. “We believe these lessons will resonate with Japan as it welcomes the world in 2025.”

When it comes to the UAE’s participation in Osaka this year, the country’s pavilion will continue its “immersive and multi-sensory journey” giving visitors a chance to “engage on an emotional and intellectual level.”

The UAE Pavilion’s theme is “Earth to Ether,” which expresses the Gulf country’s journey from a heritage rooted in the land to a future defined by innovation.

With sustainability and technology in mind, Al-Faheem said the pavilion uses eco-conscious materials such as Datecrete and palm-based architectural elements to reflect environmental values.

“The content of the pavilion also showcases our leadership in clean energy, smart healthcare, and space technologies,” the ambassador said.

The architectural design draws inspiration from traditional Emirati structures and uses materials from the date palm. Inside the pavilion, visitors will be able to experience stories that reflect the UAE’s values and vision for the future.

Given that the UAE and Japan have both hosted World Expos, Al-Faheem said that this has allowed the two countries to strengthen “an already deep and multifaceted relationship. These global events provide a powerful platform to showcase shared values and to develop partnerships across sectors such as energy, education, culture, and technology.”

The UAE Pavilion at Expo 2025 is expected to honor the relationship between the two countries and create new opportunities for joint initiatives.

Al-Faheem said he hopes that through the upcoming expo, the UAE will be able to deepen people-to-people ties with Japan and to create cultural and educational exchanges.

Expo 2025 Osaka, Kansai will run from April 13 to Oct. 13, with an official opening ceremony on April 12.

This article also appears on Arab News Japan