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


Israel army says intercepts Yemen missile after air raid sirens sound

Updated 01 June 2025
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Israel army says intercepts Yemen missile after air raid sirens sound

  • Yemen’s Houthi insurgents later claimed to have fired a 'ballistic missile' at Israel’s Ben Gurion airport

JERUSALEM: The Israeli army said it had intercepted a missile fired from Yemen on Sunday after air raid sirens sounded in Jerusalem and other cities.
“Following the sirens that sounded a short while ago in several areas in Israel, a missile launched from Yemen was intercepted,” the army said in a statement.
Yemen’s Houthi insurgents later claimed to have fired a “ballistic missile” at Israel’s Ben Gurion airport.
The group’s military spokesman Yehya Saree said three drones were also launched at Israel.
The Iran-backed group has repeatedly launched missiles and drones at Israel since the Gaza war broke out in October 2023 with Palestinian militant group Hamas’s attack on Israel.
Almost all of the projectiles have been intercepted.
Sunday’s interception followed another reported attack on Thursday claimed by the Yemeni militants.
The Houthis, who say they are acting in solidarity with Palestinians, paused their attacks during a two-month Gaza ceasefire that ended in March, but began again after Israel resumed its military campaign in the territory.
While most of the projectiles have been intercepted, one missile fired in early May hit inside the perimeter of Ben Gurion airport for the first time.
Israel has carried out several strikes in Yemen in retaliation for the attacks, including on ports and the airport in the capital Sanaa.


Lebanese President Aoun reviews ties, cooperation with Iraqi official

Updated 01 June 2025
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Lebanese President Aoun reviews ties, cooperation with Iraqi official

  • Joseph Aoun said that Lebanon and Iraq face the challenge of terrorism, which is being addressed through security agencies
  • Lebanese and Iraqi presidents emphasized the urgency to end the Israeli war in the Gaza Strip and to support Palestinians

LONDON: Lebanese President Joseph Aoun discussed ties and cooperation with Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia Al-Sudani during his visit to Iraq on Sunday.

Aoun stressed the importance of establishing an Arab mutual interest system to enhance shared interests among Arab countries during his meeting with Al-Sudani.

In a separate meeting with Rashid at the Presidential Palace in Baghdad, Aoun commended Iraq’s support and donations, including fuel shipments to generate electricity, for the Lebanese people during the recent round of the Israeli-Hezbollah war, which flared up in September 2024.

Aoun said that Lebanon and Iraq face the challenge of terrorism, which is being addressed through security agencies in both countries.

The two presidents emphasized the urgency to end the Israeli war in the Gaza Strip and to support the Palestinian cause without allowing it to be compromised, according to the NNA agency.

Aoun said that Israel must withdraw from the five areas inside the Lebanese territory it has controlled since 2024 and stop its repeated attacks on the country that undermine peace efforts in the region.

Rashid affirmed Iraq’s support for Lebanon and said that Baghdad views positively the recent developments in the country following the formation of the new government in early 2025.


Climate activist Greta Thunberg joins aid ship sailing to Gaza aimed at breaking Israel’s blockade

Updated 01 June 2025
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Climate activist Greta Thunberg joins aid ship sailing to Gaza aimed at breaking Israel’s blockade

  • The sailing boat Madleen – operated by activist group Freedom Flotilla Coalition — departed from the Sicilian port of Catania

CATANIA, Italy: Climate campaigner Greta Thunberg and other 11 activists set sail on Sunday afternoon for Gaza on a ship aimed at “breaking Israel’s siege” of the devastated territory, organizers said.

The sailing boat Madleen – operated by activist group Freedom Flotilla Coalition — departed from the Sicilian port of Catania, in southern Italy.

It will try to reach the shores of the Gaza Strip in an effort to bring in some aid and raise “international awareness” over the ongoing humanitarian crisis, the activists said at a press conference on Sunday, ahead of departure.

“We are doing this because, no matter what odds we are against, we have to keep trying,” Thunberg said, bursting into tears during her speech.

“Because the moment we stop trying is when we lose our humanity. And no matter how dangerous this mission is, it’s not even near as dangerous as the silence of the entire world in the face of the live-streamed genocide,” she added.

Israel, which was founded in the aftermath of the Holocaust, has adamantly rejected genocide allegations against it as an antisemitic “blood libel.”

In mid-May, Israel slightly eased its blockade of Gaza after nearly three months, allowing a limited amount of humanitarian aid into the territory.

Experts have warned that Gaza is at risk of famine if more aid is not brought in.

UN agencies and major aid groups say Israeli restrictions, the breakdown of law and order, and widespread looting make it extremely difficult to deliver aid to Gaza’s roughly 2 million Palestinians.

Among those joining the crew of the Madleen are “Game of Thrones” actor Liam Cunningham and Rima Hassan, a French member of the European Parliament who is of Palestinian descent. She has been barred from entering Israel due to her active opposition to the Israeli assault on Gaza.

The activists expect to take seven days to get to their destination, if they are not stopped.

Thunberg, who became an internationally famous climate activist after organizing massive teen protests in her native Sweden, had been due to board a previous Freedom Flotilla ship last month.

That attempt to reach Gaza by sea, in early May, failed after another of the group’s vessels, the “Conscience”, was attacked by two alleged drones while sailing in international waters off the coast of Malta.

The group blamed Israel for the attack, which damaged the front section of the ship, in the latest confrontation over efforts to send assistance to the Palestinian territory devastated by nearly 19 months of war.

The Israeli government says the blockade is an attempt to pressure Hamas to release hostages it took during the Oct. 7, 2023, attack that triggered the conflict. Hamas-led militants assaulted southern Israel that day, killing some 1,200 people, mostly civilians, and abducting 251. Hamas is still holding 58 hostages, 23 of whom are believed to be alive.

In response, Israel launched an offensive that has killed over 52,000 Palestinians, mostly women and children, according to Gaza’s Health Ministry, which does not distinguish between fighters and civilians. Israel’s bombardment and ground operations have destroyed vast areas of the territory and left most of its population homeless.

The Flotilla group was only the latest among a growing number of critics to accuse Israel of genocidal acts in its war in Gaza. Israel vehemently denies the allegations, saying its war is directed at Hamas militants, not Gaza’s civilians.

“We are breaking the siege of Gaza by sea, but that’s part of a broader strategy of mobilizations that will also attempt to break the siege by land,” said activist Thiago Avila.

Avila cited the upcoming Global March to Gaza — an international initiative also open to doctors, lawyers and media — which is set to leave Egypt and reach the Rafah crossing in mid-June to stage a protest there, asking Israel to stop the Gaza offensive and reopen the border.


Nearly 250,000 Syrians in Turkiye returned home after Assad regime collapse

Updated 01 June 2025
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Nearly 250,000 Syrians in Turkiye returned home after Assad regime collapse

  • The fall of Assad allowed for the voluntary return of tens of thousands of Syrian refugees to their homes
  • In May, 2,723,421 Syrians were living in Turkiye, compared to 3,737,369 in May 2021

LONDON: Nearly 250,000 Syrian refugees living in Turkiye have returned to Syria since the fall of Bashar Assad’s regime in December, which ended more than a decade of civil strife in the country.

Turkish Interior Minister Ali Yerlikaya announced on Sunday that data from the Turkish Immigration Directorate showed a significant decline in the number of Syrians with temporary protection status, with nearly 250,000 making a return journey to Syria.

In May, the directorate recorded 2,723,421 Syrians living in Turkiye, compared to 3,737,369 in May 2021, according to the SANA news agency. It added that the fall of Assad’s regime in December allowed for the voluntary return of tens of thousands of Syrian refugees to their homes.

The civil war in Syria, which began in 2011, has displaced nearly 8.5 million people, almost half of the population. The majority of them have ended up in Turkiye and refugee camps in Jordan and Lebanon.


Arab ministers denounce Israeli ‘arrogance’ over blocking West Bank visit

Updated 01 June 2025
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Arab ministers denounce Israeli ‘arrogance’ over blocking West Bank visit

  • Saudi FM said Israeli stance showed its “extremism and rejection of peace”
  • Ministers held video conference meeting in Amman with Palestinian President Mahmoud Abbas

CAIRO: Saudi Arabia's Foreign Minister Prince Faisal bin Farhan said the Israeli government's refusal to allow Arab ministers to the occupied West Bank showed its “extremism and rejection of peace.”

His statements came during a joint press conference with counterparts from Jordan, Egypt, and Bahrain in Amman. 

The Arab ministers condemned what they described as the “arrogant” Israeli decision to ban them from visiting the West Bank and its rejection of any peace efforts.

Members of the Ministerial Committee assigned by the Joint Extraordinary Arab-Islamic Summit on Gaza met with Jordan's King Abdullah II in Amman earlier today to discuss ceasefire efforts in the Gaza Strip and a post-war plan.

The Ministerial Committee, which consists of the foreign ministers from Saudi Arabia, Egypt, Jordan, and Bahrain, along with the Secretary-General of the Arab League, held a video conference meeting in Amman on Sunday with Palestinian President Mahmoud Abbas and his deputy, Hussein Al-Sheikh, and Mohammad Mustafa, the prime minister and minister of foreign affairs.

Ayman Al-Safadi, Jordan's Foreign Minister, said that the “Israeli government continues to kill all the chances of peace in the region” after the committee visit was blocked on Saturday.

Prince Faisal bin Farhan echoed these sentiments and added that the Palestinian Authority continued to carry out its duties while facing a party that did not want any solutions.

Egyptian Foreign Minister Badr Abdelatty told Petra news agency that Jordan and Egypt will strongly confront all Israeli plans to displace Palestinians from the Gaza Strip and the West Bank.

On Saturday, Israel said it will not allow a planned meeting on Sunday in the Palestinian administrative capital of Ramallah to go ahead.