Amazon acquires Middle-East e-commerce giant Souq.com

Amazon has agreed to buy Middle-East's biggest e-commerce platform, Souq.com. The acquisition had been making a lot of rumours in the past week, but Amazon has now officially confirmed the deal without disclosing its value.

SOUQ.com, that is often referred to as the Amazon of the middle east sells more than 8 million products and generates about 50 million monthly visits, from customers in the Gulf countries and Egypt. The e-tailer will keep its branding after the deal closes.

"Amazon and SOUQ.com share the same DNA – we’re both driven by customers, invention, and long-term thinking. SOUQ.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We’re looking forward to both learnings 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," said Russ Grandinetti, Amazon Senior Vice President, International Consumer.

Initially, the plan was for Amazon to acquire a 30 percent stake in the company. That particular deal would have valued Souq at somewhere around $1 Billion. However, the company changed its mind somewhere along the way and decided to go for an outright acquisition.

Amazon beat local competition, Emaar Malls, an arm of Dubai's biggest real estate developer to make the deal. "We feel the opportunity, and growth in this part of the world is still massive," said Ronaldo Mouchawar, CEO of Souq. "Online is just 1 to 2% of what is being purchased. For us culturally as well, Amazon is a great fit for us, and this is why Amazon was our partner and choice."

When Mouchawar founded Souq 10 years ago with two partners, e-commerce was virtually unknown in the Middle East. The company employed five people in Dubai. Now it has 3,000 workers across the Arab world.

The deal is expected to close later this year.