Amazon in talks to buy Dubai’s Souq.com in $1bn deal

Bloomberg has claimed that Amazon may be about to part with $1bn to get hold of its Middle East equivalent, Souq.com. The purchase would give the retail giant access not only to the UAE, but also to the growing e-commerce markets in Saudi Arabia and Egypt.

While the report said that neither party wished to comment, it does quote an interview with Syrian co-founder and chief executive Ronaldo Mouchawar, (pictured) noting that he would be open to the prospect of selling shares to the public in the future. Considering this was only in February, a complete sale would be a dramatic step.

This article from IR Net suggests that bitcoin could get a boost, were the purchase to go ahead, owing to low demand from Middle Eastern shoppers for credit cards, which has impeded Souq’s growth.

“Many of these shoppers simply don’t have access to credit cards, or for one reason or another don’t have a desire to own a credit card,” noted the report.

“This has made payment for goods purchased on Souq.com a bit complicated. Basically the way things work now is that shoppers must purchase pre-paid cards, which can be bought or refilled at local convenient stores and gas stations.”

It goes on to suggest that – were Amazon willing to implement it – payments by bitcoin could not only speed up transactions but also encourage more consumers in the Middle East to shop online.

“If Amazon were to acquire Souq.com, bitcoin adoption might be key to expanding its presence worldwide.”