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
Amazon deal to buy Souq.com a ‘coming-of-age’ of Mideast ecommerce
Amazon deal to buy Souq.com a ‘coming-of-age’ of Mideast ecommerce
Hamas is sending a delegation to Egypt for further ceasefire talks in the latest sign of progress
- US and Egyptian mediators have put to Hamas a proposal -– apparently with Israel’s acceptance — that sets out a three-stage process that would bring an immediate six-week ceasefire and partial release of Israeli hostages
BEIRUT: Hamas said Thursday that it was sending a delegation to Egypt for further ceasefire talks, in a new sign of progress in attempts by international mediators to hammer out an agreement between Israel and the militant group to end the war in Gaza.
After months of stop-and-start negotiations, the ceasefire efforts appear to have reached a critical stage, with Egyptian and American mediators reporting signs of compromise in recent days. But chances for the deal remain entangled with the key question of whether Israel will accept an end to the war without reaching its stated goal of destroying Hamas.
The stakes in the ceasefire negotiations were made clear in a new UN report that said if the Israel-Hamas war stops today, it will still take until 2040 to rebuild all the homes that have been destroyed by nearly seven months of Israeli bombardment and ground offensives in Gaza. It warned that the impact of the damage to the economy will set back development for generations and will only get worse with every month fighting continues.
The proposal that US and Egyptian mediators have put to Hamas -– apparently with Israel’s acceptance — sets out a three-stage process that would bring an immediate six-week ceasefire and partial release of Israeli hostages, but also negotiations over a “permanent calm” that includes some sort of Israeli withdrawal from Gaza, according to an Egyptian official. Hamas is seeking guarantees for a full Israeli withdrawal and complete end to the war.
Hamas officials have sent mixed signals about the proposal in recent days. But on Thursday, its supreme leader, Ismail Haniyeh, said in a statement that he had spoken to Egypt’s intelligence chief and “stressed the positive spirit of the movement in studying the ceasefire proposal.”
The statement said that Hamas negotiators would travel to Cairo “to complete the ongoing discussions with the aim of working forward for an agreement.” Haniyeh said he had also spoken to the prime minister of Qatar, another key mediator in the process.
The brokers are hopeful that the deal will bring an end to a conflict that has killed more than 34,000 Palestinians, according to local health officials, caused widespread destruction and plunged the territory into a humanitarian crisis. They also hope a deal will avert an Israeli attack on Rafah, where more than half of Gaza’s 2.3 million people have sought shelter after fleeing battle zones elsewhere in the territory.
If Israel does agree to end the war in return for a full hostage release, it would be a major turnaround. Since Hamas’ Oct. 7 attack stunned Israel, its leaders have vowed not to stop their bombardment and ground offensives until the militant group is destroyed. They also say Israel must keep a military presence in Gaza and security control after the war to ensure Hamas doesn’t rebuild.
Publicly at least, Israeli Prime Minister Benjamin Netanyahu continues to insist that is the only acceptable endgame.
He has vowed that even if a ceasefire is reached, Israel will eventually attack Rafah, which he says is Hamas’ last stronghold in Gaza. He repeated his determination to do so in talks Wednesday with US Secretary of State Antony Blinken, who was in Israel on a regional tour to push the deal through.
The agreement’s immediate fate hinges on whether Hamas will accept uncertainty over the final phases to bring the initial six-week pause in fighting — and at least postpone what it is feared would be a devastating assault on Rafah.
Egypt has been privately assuring Hamas that the deal will mean a total end to the war. But the Egyptian official said Hamas says the text’s language is too vague and wants it to specify a complete Israeli pullout from all of Gaza. The official spoke on condition of anonymity to talk about the internal deliberations.
On Wednesday evening, however, the news looked less positive as Osama Hamdan, a top Hamas official, expressed skepticism, saying the group’s initial position was “negative.” Speaking to Hezbollah’s Al-Manar TV, he said that talks were still ongoing but would stop if Israel invades Rafah.
Blinken hiked up pressure on Hamas to accept, saying Israel had made “very important” compromises.
“There’s no time for further haggling. The deal is there,” Blinken said Wednesday before leaving for the US
An Israeli airstrike, meanwhile, killed at least five people, including a child, in Deir Al-Balah in central Gaza. The bodies were seen and counted by Associated Press journalists at a hospital.
The war broke out on Oct. 7. when Hamas militants broke into southern Israel and killed over 1,200 people, mostly Israelis, taking around 250 others hostage, some released during a ceasefire on November.
The Israel-Hamas war was sparked by the Oct. 7 raid into southern Israel in which militants killed around 1,200 people, mostly civilians, and abducted around 250 hostages. Hamas is believed to still hold around 100 hostages and the remains of more than 30 others.
Since then, Israel’s campaign in Gaza has wreaked vast destruction and brought a humanitarian disaster, with several hundred thousand Palestinians in northern Gaza facing imminent famine, according to the UN More than 80 percent of the population has been driven from their homes.
The “productive basis of the economy has been destroyed” and poverty is rising sharply among Palestinians, according to the report released Thursday by the United Nations Development Program and the Economic and Social Commission for Western Asia.
It said that in 2024, the entire Palestinian economy — including both Gaza and the West Bank -– has so far contracted 25.8 percent. If the war continues, the loss will reach a “staggering” 29 percent by July, it said. The West Bank economy has been hit by Israel’s decision to cancel the work permits for tens of thousands of laborers who depended on jobs inside Israel.
“These new figures warn that the suffering in Gaza will not end when the war does,” UNDP administrator Achim Steiner said. He warned of a “serious development crisis that jeopardizes the future of generations to come.”
Syria says Israeli strike outside Damascus injures eight troops
- A security source said the strike hit a building operated by government forces
- Defense ministry acknowledged only that the strike caused some material damage
An Israeli airstrike on the outskirts of Damascus injured eight Syrian military personnel late on Thursday, the Syrian defense ministry said, the latest such attack amid the war in Gaza.
The Israeli strike, launched from the occupied Golan Heights toward “one of the sites in the vicinity of Damascus,” caused some material damage, the Syrian defense ministry said in a statement.
The strike hit a building operated by Syrian security forces, a security source in the alliance backing Syria’s government earlier told Reuters.
The Israeli military said it does not comment on reports in the foreign media.
Israel has for years been striking Iran-linked targets in Syria and has stepped up its campaign in the war-torn country since Oct. 7, when Iran-backed Palestinian militants Hamas crossed into Israeli territory in an attack that left 1,200 people dead and led to more than 250 taken hostage.
Israel responded with a land, air and sea assault on the Gaza Strip, escalated strikes on Syria and exchanged fire with Lebanese armed group Hezbollah across Lebanon’s southern border.
The security source said the location struck in Syria on Thursday sat just south of the Sayyeda Zeinab shrine, where Hezbollah and Iranian forces are entrenched.
But the source said the site struck was not operated by Iranian units or Hezbollah.
Turkiye halts all trade with Israel, cites worsening Palestinian situation
- Turkiye’s trade ministry: ‘Export and import transactions related to Israel have been stopped, covering all products’
- Israel’s FM Israel Katz said that Turkish President Tayyip Erdogan was breaking agreements by blocking ports to Israeli imports and exports
ANKARA: Turkiye stopped all exports and imports to and from Israel as of Thursday, the Turkish trade ministry said, citing the “worsening humanitarian tragedy” in the Palestinian territories.
“Export and import transactions related to Israel have been stopped, covering all products,” Turkiye’s trade ministry said in a statement.
“Turkiye will strictly and decisively implement these new measures until the Israeli Government allows an uninterrupted and sufficient flow of humanitarian aid to Gaza.”
The two countries had a trade volume of $6.8 billion in 2023.
Turkiye last month imposed trade restrictions on Israel over what it said was Israel’s refusal to allow Ankara to take part in aid air-drop operations for Gaza and its offensive on the enclave.
Earlier on Thursday, Israel’s foreign minister said that Turkish President Tayyip Erdogan was breaking agreements by blocking ports to Israeli imports and exports.
“This is how a dictator behaves, disregarding the interests of the Turkish people and businessmen, and ignoring international trade agreements,” Israel’s Foreign Minister Israel Katz posted on X.
Katz said he instructed the foreign ministry to work to create alternatives for trade with Turkiye, focusing on local production and imports from other countries.
Palestinian groups say top Gaza surgeon died in Israeli custody
- Dr. Adnan Ahmed Atiya Al-Barsh died at the Israeli-run Ofer prison in the West Bank last month: advocacy groups
- Latest deaths brought to 18 the number of deaths in Israeli custody since the war began on October 7, groups said
RAMALLAH, Palestinian Territories: Palestinian advocacy groups said Thursday that the head of orthopedics at Gaza’s largest hospital Al-Shifa has died in Israeli custody, alleging he had been tortured during his detention.
Dr. Adnan Ahmed Atiya Al-Barsh died at the Israeli-run Ofer prison in the occupied West Bank last month, the Palestinian Prisoners Affairs Committee and the Palestinian Prisoners Club said in a joint statement.
Contacted by AFP about the reported death in custody, the Israeli army said: “We are currently not aware of such (an) incident.”
Barsh, 50, had been arrested with a group of other doctors last December at Al-Awda Hospital near the Jabalia refugee camp in northern Gaza.
He died on April 19, the prisoners groups said, citing Palestinian authorities.
“His body is still being held,” they added.
The groups said they had also learnt that another prisoner from Gaza, Ismail Abdel Bari Rajab Khadir, 33, had died in Israeli custody.
Khadir’s body was returned to Gaza on Thursday, as part of a routine repatriation of detainees by the army through the Kerem Shalom border crossing, the groups said, citing authorities on the Palestinian side of the crossing.
The groups said evidence suggested the two men had died “as a result of torture.”
They alleged that Barsh’s death was “part of a systematic targeting of doctors and the health system in Gaza.”
The health ministry in Hamas-ruled Gaza said the surgeon’s death amounted to “murder,” adding that it brought to 492 the number of health workers killed in Gaza since the war erupted nearly seven months ago.
The prisoners groups said the latest deaths brought to 18 the number of deaths in Israeli custody since the war began on October 7.
There have been repeated Israeli military operations around Gaza’s hospitals that have caused heavy damage.
Medical facilities are protected under international humanitarian law but the Israeli military has accused Hamas of using Gaza’s hospitals as cover for military operations, something the militant group denies.
The Al-Shifa hospital, where Barsh worked, has been reduced to rubble by repeated Israeli military operations, leaving what the World Health Organization described last month as an “empty shell.”
The war started with an unprecedented Hamas attack on southern Israel that resulted in the deaths of 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.
Israel estimates that 129 captives seized by militants during their attack remain in Gaza. The military says 34 of them are dead.
Israel’s retaliatory offensive against Hamas, has killed at least 34,596 people in Gaza, most of them women and children, according to the health ministry.
Lebanon urged to conclude working arrangement with EU border agency to prevent illegal migration
- Berri: Lebanon ready to discuss implementation of UN Resolution 1701 after Gaza aggression ends
- The EU assistance is tied to Lebanon’s need to implement the required reforms and control its borders and illegal crossings with Syria
BEIRUT: The EU has announced an aid package for Lebanon of 1 billion euros ($1.06 billion) to help boost border control and halt the flow of asylum-seekers and migrants from the country across the Mediterranean Sea to Cyprus and Italy.
It comes against a backdrop of increasing hostility toward Syrian refugees in Lebanon and a major surge in irregular migration of Syrians from Lebanon to Cyprus.
The UN High Commissioner for Refugees, meanwhile, has decided to reduce healthcare coverage for registered Syrian refugees by 50 percent.
EU Commission President Ursula von der Leyen said during her visit to Beirut with Cypriot President Nikos Christodoulides that they hoped Lebanon would conclude a “working arrangement” with Frontex, the EU’s border agency.
Von der Leyen said the aid’s distribution will start this year and continue until 2027.
The aid will be dedicated to the most vulnerable people, including refugees, internally displaced people, and host communities.
The EU assistance — which is tied to Lebanon’s need to implement the required reforms and control its borders and illegal crossings with Syria — came in the wake of continued hostilities on the southern front between Hezbollah and the Israeli military.
The two officials arrived in Beirut following the European Council’s special meeting last month.
At the end of the meeting, the council confirmed the EU’s “determination to support the most vulnerable people in Lebanon, strengthen its support to the Lebanese Armed Forces, and combat human trafficking and smuggling.”
It also reaffirmed “the need to achieve conditions for safe, voluntary and dignified return of Syrian refugees, as defined by UNHCR.”
The visit lasted hours in Lebanon and included a meeting with caretaker Prime Minister Najib Mikati and Parliament Speaker Nabih Berri.
Following a tripartite meeting and an expanded discussion in which ministers and security officials participated, Mikati commended the EU’s understanding of the Lebanese state’s demand to reconsider some of its policies regarding assistance to Syrian refugees in the country.
Mikati said: “Lebanon has borne the greatest burden, but it can no longer endure the current situation, especially since the refugees constitute around one-third of Lebanon’s population, which results in additional difficulties and challenges and exacerbates Lebanon’s economic crisis.”
He added: “What is more dangerous is the escalating tension between Syrian refugees and the Lebanese host community due to the crimes that are increasing and threatening national security.”
Mikati emphasized that “Lebanon’s security is security for European countries and vice versa,” adding that “our cooperation on this matter constitutes the real entry point for stability.”
He added: “We refuse to let our country become an alternative homeland, and everyone knows that the solution is political excellence.”
Mikati called for the EU and international actors to recognize that most Syrian areas have become safe, which would facilitate the refugees’ repatriation and allow them to be supported in their home country.
As a first step, those who entered Lebanon in 2016 must go back, as most of them fled for economic reasons and are not considered refugees, said Mikati.
He warned against “turning Lebanon into a transit country to Europe,” saying that “the problems occurring on the Cypriot border are a sample of what might happen if the matter was not radically addressed.”
Von der Leyen, the first European Commission president to visit Lebanon, affirmed her “understanding of the Lebanese position.”
She said: “We want to contribute to Lebanon’s socio-economic stability by strengthening basic services and investments in, for example, education, social protection, and health for the people of Lebanon.
“We will accompany you as you take forward economic, financial, and banking reforms.
“These reforms are key to improving the country’s long-term economic situation. This would allow the business environment and the banking sector to regain the international community’s trust and thus enable private sector investment.”
The EU official said that the support program for the Lebanese military and other security forces “will mainly focus on providing equipment, training and the necessary infrastructure for border management.
“In addition, it would be very helpful for Lebanon to conclude a working arrangement with Frontex, particularly on information exchange and situational awareness.”
She continued: “To help you manage migration, we are committed to maintaining legal pathways open to Europe and resettling refugees from Lebanon to the EU.
“At the same time, we count on your cooperation to prevent illegal migration and combat migrant smuggling.”
Von der Leyen said: “We will also look at how we can make the EU’s assistance more effective. This includes exploring how to work on a more structured approach to voluntary returns to Syria, in close cooperation with UNHCR.”
She also stressed that the international community should strengthen support for humanitarian and early recovery programs in Syria.
Von der Leyen added: “We are deeply concerned about the volatile situation in southern Lebanon, and believe that the security of both Lebanon and Israel cannot be disassociated.
“So, we call for the full implementation of UN Security Council Resolution 1701.
“This needs to be part of a negotiated diplomatic settlement. The Lebanese armed forces are critical here, too, and the EU is ready to work on bolstering their capabilities.”
Christodoulides said that European assistance, which also includes “combating smuggling and managing borders and monitoring them,“ would “enhance the Lebanese authorities’ ability to confront various challenges such as monitoring land and sea borders, ensuring the safety of citizens, combating human trafficking, and continuing counterterrorism efforts.”
The Cypriot president said the “reverberations of the issues and challenges” that Lebanon was facing directly affected Cyprus and the EU.
“We need to work with our partners and UNHCR to discuss the issue of voluntary returns and reconsider the situation of some areas in Syria.”
He emphasized that Lebanon must implement the “necessary and deep reforms in line with the International Monetary Fund’s demands and address issues of accountability, and Cyprus will support Lebanon’s efforts to elect a new president, a development that will send a strong political and symbolic message for change and moving forward.”
Parliament Speaker Berri told the European official that Lebanon “does not want war, and since the moment the Israeli aggression began, it has remained committed to the rules of engagement, which Israel continues to violate, targeting the depth of Lebanon, not sparing civilians, media personnel, agricultural areas, and ambulances, using internationally banned weapons.”
Berri said that Lebanon, “while awaiting the success of international efforts to stop the aggression on the Gaza Strip, which will inevitably reflect on Lebanon and the region, will then be ready to continue the discussion on the implementation of UN Resolution 1701, to which Lebanon was and still is committed and adheres.”
Berri urged “the concerned parties to engage with the Syrian government, which now has a presence over most of its territories, in addressing the refugee issue.”
