Amazon announced plans to purchase Dubai-based online retailer Souq.com. Known as the “Amazon of the Middle East,” Souq.com sells consumer electronics, fashion, household items and other goods.
Reuters reported that for Amazon, this acquisition offers expertise and a foothold in a region where ecommerce is seeing an expansion due to a young and tech-savvy population. Some of the top markets include Kuwait, Saudi Arabia and the United Arab Emirates for mobile phone penetration.
While the value of the deal was not known, Souq.com raised $425 million since it was founded in 2005. The company was valued at an estimated $1 billion at the time of its latest funding round last year.