Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

Emaar Malls Offers $800M for Souq.com Amid Amazon Rumors

Emaar Malls PJSC made public its bid for Souq.com in a filing Monday on the Dubai Financial Market

A man stands by the entrance of the Souq.com warehouse in Dubai, United Arab Emirates, Monday, March 27, 2017, photo: AP/Jon Gambrell
8 months ago

DUBAI, United Arab Emirates – The operator of Dubai’s largest mall said Monday it made an $880-million offer to purchase the Middle East’s biggest online retailer Souq.com, adding new corporate intrigue to the website’s rumored sale to Amazon.

Emaar Mall’s bid for the site comes after Emaar chairman Mohamed Alabbar reportedly met in November with Amazon CEO Jeff Bezos at the state-backed firm’s cavernous Dubai Mall, home to a massive aquarium and in the shadow of the Burj Khalifa, the world’s tallest building it built.

In the time since, Amazon apparently went after Souq.com as Alabbar stands ready to launch his own online retailer with Saudi money called noon.com. This potentially sets the stage for a major e-commerce battle in one of the Mideast’s most-lucrative markets.

Emaar Malls PJSC made public its bid for Souq.com in a filing Monday on the Dubai Financial Market. The short filing, signed by Emaar Malls vice chairman Ahmad Thani al-Matrooshi, said the bid was made “in line with the strategy to align e-commerce with physical shopping.”

“The bid has still not been accepted by the shareholders of Souq.com,” the filing said.

A stock ticker shows the share price and trade volume of Emaar Malls stock at the Dubai Financial Market in Dubai, United Arab Emirates, Monday, March 27, 2017. Photo: AP/Jon Gambrell

Souq.com, founded by Syrian national Ronaldo Mouchawar, did not respond to requests for comment from a news agency. The website last year raised more than $275 million in a round of financing that the company said would help fuel its future growth.

Seattle-based Amazon.com Inc. did not immediately respond to requests for comment.

Dubai, the commercial capital of the United Arab Emirates, home to the long-haul carrier Emirates and the world’s busiest international airport, is home to luxury malls that even include an indoor ski slope. Its summer heat of over 50 degrees Celsius (122 degrees Fahrenheit) makes malls a major attraction for both shopping and leisure time in the city.

While Uber and other online services firms work in Dubai, online retail shopping has yet to truly take off like it has in Western countries. Emaar’s bid for Souq.com makes sense as it will strengthen its position in the UAE and Saudi markets, while allowing the website to maintain its local identity, said Rabia Yasmeen, an analyst with research firm Euromonitor International.

“Buying out Souq.com will give the group access to existing infrastructure and assets … basically driving out the case of competition from a local player and customer retention in the region,” Yasmeen said.

Nearly 85 percent of stock in Emaar Malls is owned by Emaar Properties PJSC, a company synonymous with the skyscraper and building boom in Dubai. The state-run sovereign wealth fund called the Investment Corporation of Dubai owns nearly 30 percent of Emaar Properties.

Emaar Malls reported profits of $510 million in 2016 off revenues of $879 million. Its stock dropped nearly 2 percent Monday to close at 2.49 dirhams (68 cents) a share.

JON GAMBRELL

Comments Whatsapp Twitter Facebook Share
More From The News
Latest News

Sessions denies lying on Russia, pleads ...

4 days ago
Business

Senate GOP intent on scrapping health ma ...

4 days ago
Business

Asian shares fall, tracking Wall St, dro ...

4 days ago
Latest News

Washington GOP boosts pressure on Alabam ...

4 days ago
Most Popular

Nigeria seeks Chinese loan

By The Associated Press
Business

Undersecretary: No Risk for Development ...

By Notimex
Business

Mexico Keeps Key Rate Steady as Peso Str ...

By The News
Business

Daily Exchange: Dollar Sold for up to 18 ...

By Notimex
Business

Banxico Seen Holding Key Rate as Peso St ...

By Reuters
Business