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


Red Cross urges unhindered aid access to flood-hit and freezing Gaza

Updated 7 sec ago
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Red Cross urges unhindered aid access to flood-hit and freezing Gaza

  • IFRC highlighted the deaths of eight newborn babies who had been living in tents without warmth or protection from rain
Geneva: The Red Cross called Wednesday for safe and unhindered access to Gaza to bring desperately needed aid into the war-torn Palestinian territory wracked by hunger and where babies are freezing to death.
Heavy rain and flooding have ravaged the makeshift shelters in Gaza, leaving thousands with up to 30 centimeters of water inside their damaged tents, the International Federation of Red Cross and Red Crescent Societies said.
The dire weather conditions were “exacerbating the unbearable conditions” in Gaza, it said, pointing out that many families were left “clinging on to survival in makeshift camps, without even the most basic necessities, such as blankets.”
Citing the United Nations, the IFRC highlighted the deaths of eight newborn babies who had been living in tents without warmth or protection from the rain and falling temperatures.
Those deaths “underscore the critical severity of the humanitarian crisis there,” IFRC Secretary-General Jagan Chapagain said in a statement.
“I urgently reiterate my call to grant safe and unhindered access to humanitarians to let them provide life-saving assistance,” he said.
“Without safe access — children will freeze to death. Without safe access — families will starve. Without safe access — humanitarian workers can’t save lives.”
Chapagain issued an “urgent plea to all the parties... to put an end to this human suffering. Now.”
The IFRC said the Palestine Red Crescent Society (PRCS) was striving to provide emergency health services and supplies to people in Gaza, with an extra sense of urgency during the cold winter months.
But it warned that “the lack of aid deliveries and access is making providing adequate support all but impossible.”
It also lamented the “continuing attacks on health facilities across the Gaza Strip,” which it said meant people were unable to access the treatment they need.
“In the north of Gaza, there are now no functioning hospitals,” it said.
The IFRC stressed that the closure of the main Rafah border crossing last May had had a dramatic impact on the humanitarian situation, warning that “only a trickle of aid is currently entering Gaza.”

South Syria fighters reluctant to give up weapons: spokesman

Updated 08 January 2025
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South Syria fighters reluctant to give up weapons: spokesman

  • Daraa became known as the birthplace of the Syrian uprising after protests erupted there in 2011 against Assad’s rule
  • Southern Operations Room, a coalition of armed groups from the southern province of Daraa formed on December 6 to help topple Assad

Bosra: Fighters in southern Syria who helped topple President Bashar Assad are reluctant to disarm and disband as ordered by the country’s new rulers, their spokesman told AFP.
An Islamist-led offensive ripped through Syria from the north and into Damascus on December 8, bringing to a sudden end five decades of rule by the Assad clan.
On December 25, the country’s new Islamist rulers said they had reached an agreement with rebel groups on their dissolution and integration under the defense ministry.
New leader Ahmed Al-Sharaa said the authorities would “absolutely not allow there to be weapons in the country outside state control.”
But a spokesman for the Southern Operations Room, a coalition of armed groups from the southern province of Daraa formed on December 6 to help topple Assad, said the alliance did not agree.
“We’re not convinced by the idea of dissolving armed groups,” said its spokesman Naseem Abu Orra.
“We’re an organized force in the south... headed by officers who defected” from Assad’s army, he told AFP in Daraa’s town of Bosra.
“We can integrate the defense ministry as a pre-organized entity... We have weapons, heavy equipment,” he said.
Abu Orra said the group, led by local leader Ahmed Al-Awdeh, included thousands of men, without any Islamist affiliation.
Awdeh has good relations with former Assad ally Russia, as well as neighboring Jordan and the United Arab Emirates, sources close to his group said.
Daraa became known as the birthplace of the Syrian uprising after protests erupted there in 2011 against Assad’s rule.
As they spread across the country, government forces cracked down on the demonstrators, triggering defections from the army and one of the deadliest wars of the century.
After losing swathes of territory to rebels and jihadists, Assad’s forces clawed back control of much of the country with the backing of Iran and Russia.
Daraa returned to government control in 2018, but under a deal mediated by Russia, rebels were allowed to keep their weapons and continue to ensure security in their region.
Then, after more than 13 years of civil war that had killed more than half a million people and ravaged the country, everything changed.
In the north of Syria, an Islamist-led rebel coalition called Hayat Tahrir Al-Sham (HTS) moved rapidly out of its bastion on the Turkish border to seize second city Aleppo from Assad’s forces on December 1.
Its fighters then advanced southwards toward the cities of Hama and Homs on their way to the capital.
“We... decided to begin liberating the south of the country to reach Damascus” from the other direction, Abu Orra said.
He said they elaborated their own military plans in Daraa, but there was “some coordination” with HTS in the north.
Several witnesses have told AFP that they saw Awdeh’s men, recognizable by their headdress typical of southern Syria, posted near the Central Bank and in several neighborhoods in the early hours of December 8.
By then, Assad had already fled the country, former officials have told AFP.
“It was chaos but we were briefly able to take control of vital institutions to ensure their protection,” Abu Orra said.
He said the Southern Operations Room also stood guard outside several embassies, including those of Egypt and Jordan, and led some foreign diplomats to a prominent hotel to ensure their safety.
He said “several foreign countries” had called Awdeh to request his help.
When HTS forces arrived in town at the end of the afternoon, the Southern Operations Room withdrew to Daraa to avoid “chaos or armed clashes,” Abu Orra said.
Two days later, Awdeh met Syria’s new leader Sharaa. But he did not attend the December 25 meeting during which other rebel factions agreed to disband and join a future army.


Israeli strikes kill dozens in Gaza as US pushes for ceasefire

Updated 08 January 2025
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Israeli strikes kill dozens in Gaza as US pushes for ceasefire

  • US, Qatar, Egypt intensify ceasefire efforts amid ongoing conflict
  • Israel says it will not end the war until Hamas is dismantled, hostages free

CAIRO: Israeli military strikes across Gaza killed at least 22 people on Wednesday, Palestinian medics said, as the US stepped up efforts to overcome sticking points between Israel and Hamas to reach a ceasefire to end the war.
One of the airstrikes killed at least 10 people in a multi-story house in the Sheikh Radwan neighborhood of Gaza City on Wednesday, while another killed five in the nearby Zeitoun suburb, medics said.
In Deir Al-Balah city in central Gaza, where hundreds of thousands of Palestinians are sheltering, an Israeli airstrike killed three other people.
In Jabalia, where the army has operated for more than three weeks, an Israeli airstrike killed four people, medics said.
On Tuesday, Israeli military strikes killed at least 24 Palestinians across the Gaza Strip, medics said, with two airstrikes hitting tent encampments in Mawasi, to the west of the southern city of Khan Younis, killing 18 people. The dead included several women and children.
There was no comment by the Israeli military on those incidents.
As Israeli continued its bombardments, the US, Qatar and Egypt were making the most intensive effort in months to reach a ceasefire, with one source close to the talks saying this was the most serious attempt to reach a deal so far.
The outgoing US administration has called for a final push for a deal before President Joe Biden leaves office, and many in the region view President-elect Donald Trump’s inauguration on Jan. 20 as an unofficial deadline.
“Things are better than ever before, but there is no deal yet,” the source told Reuters.
But with the clock ticking, both sides accuse the other of blocking a deal by adhering to conditions that have torpedoed all previous peace efforts for more than a year.
On Tuesday, Hamas stood by its demand that it will only free its remaining hostages if Israel agrees to end the war and withdraw all its troops from Gaza. Israel says it will not end the war until Hamas is dismantled and all hostages are free. Hamas also said that Trump was rash to say there would be “hell to pay” unless the hostages go free by his inauguration.
Osama Hamdan, an official with the Islamist group, told a news conference in Algiers on Tuesday: “I think the US president must make more disciplined and diplomatic statements.”
Nearly 46,000 Palestinians have been killed in Israel’s assault on Gaza, according to health officials in the enclave. The assault was launched after Hamas fighters stormed Israeli territory on Oct. 7, 2023, killing 1,200 people and capturing more than 250 hostages, according to Israeli tallies.


EU could lift some Syria sanctions quickly, says French FM

Updated 08 January 2025
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EU could lift some Syria sanctions quickly, says French FM

PARIS: European Union sanctions in Syria that obstruct the delivery of humanitarian aid and hinder the country’s recovery could be lifted swiftly, France’s foreign minister said Wednesday.
The United States on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar Assad’s rule to try to ease the flow of humanitarian assistance.
Speaking to France Inter radio, Foreign Minister Jean-Noel Barrot said the EU could take a similar decision soon without giving precise timing, while adding that lifting more political sanctions would depend on how Syria’s new leadership handled the transition and ensured exclusivity.
“There are other (sanctions), which today hinder access to humanitarian aid, which hinder the recovery of the country. These could be lifted quickly,” said Barrot, who met Syria’s de facto leader Ahmed Al-Sharaa on Friday with Germany’s foreign minister.
“Finally, there are other sanctions, which we are discussing with our European partners, which could be lifted, but obviously depending on the pace at which our expectations for Syria regarding women and security are taken into account.”
Three European diplomats speaking on condition of anonymity said the EU would seek to agree to lift some sanctions by the time the bloc’s 27 foreign ministers meet in Brussels on Jan. 27.
Two of the diplomats said one aim was to facilitate financial transactions to allow funds to return to the country, ease air transport and lessen sanctions targeting the energy sector to improve power supplies.
Syria suffers from severe power shortages, with state-supplied electricity available two or three hours per day in most areas. The caretaker government says it aims to provide electricity for up to eight hours per day within two months.
The US waivers allow some energy transactions and personal remittances to Syria until July 7, but do not remove any sanctions.


Lebanon to extradite son of late Muslim cleric Al-Qaradawi to UAE, PM’s office says

Updated 08 January 2025
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Lebanon to extradite son of late Muslim cleric Al-Qaradawi to UAE, PM’s office says

  • The UAE and Egypt have both filed requests for his extradition

CAIRO: Lebanon is set to extradite the son of late senior Muslim cleric Youssef Al-Qaradawi to the United Arab Emirates after the country’s caretaker cabinet approved the move on Tuesday, the Lebanese prime minister’s office said.
Abdul Rahman Al-Qaradawi, an Egyptian-Turkish poet, was detained in Lebanon on Dec. 28 after returning from Syria, according to his lawyer Mohammad Sablouh and human rights group Amnesty International.
Youssef was stopped by Lebanese authorities on the basis of an Egyptian court ruling against him that dates back to 2016.
The arrest was made based on an Interpol notice issued by the Arab Interior Ministers Council based on the 2016 court ruling to imprison Youssef for three years on charges of spreading false news.
The UAE and Egypt have both filed requests for his extradition.
Qaradawi’s lawyer said he would file an urgent appeal to block his extradition on Wednesday morning but feared his client might be flown out of the country before then.