By: Mahmoud Gamal

Dubai – Mubasher: New reports have emerged that UAE-based Emaar Malls is competing with US-based e-commerce giant Amazon.com to buy Emirati online shopping website Souq.com.

Souq.com is one of the largest e-commerce websites in the MENA region with over 400,000 products, 78% of online sales and nearly 23 million visitors per month. The website's popularity comes from the increased number of online shoppers in the Arab region.

Earlier this month, Amazon.com sought to acquire Souq.com, with the latter giving a preliminary agreement for the $580 million deal.

Last week, Emaar Malls made an $800 million bid for the Dubai-based online retailer.

In its most recent financing round, Souq.com raised $275 million from investors, making it one of the largest internet-based companies in the Middle East.

Emaar Malls is the shopping mall subsidiary of Dubai's largest developer Emaar Properties; its bid comes as a challenge to the $580 million offer by Amazon.com Inc. to acquire Souq.com.

Recent reports have stated that Emaar Properties' chairman Mohamed Al Abbar is eyeing technology investments alongside his $1 billion technology and online retail firm Noon, which has garnered investments from Saudi Arabia's sovereign wealth fund, the Public Investments Fund (PIF).

Earlier this year, Amazon.com sought to buy Souq.com in a deal worth around $650 million, but things didn't pan out because no agreement was reached regarding the price.

Emaar Malls' bid to acquire Souq.com will bring about opportunities to diversify the company's investment as well as an opportunity to change its focus, said Fadi El-Ghattis, founder and CEO of Topsy Turvy Consultants.

On Monday, Emaar Malls confirmed its bid to acquire Souq.com for $800 million.

Souq.com CEO and co-founder Ronaldo Mouchawar declined to comment on the Emaar Malls deal, but told Mubasher that shareholders were the ones with the final word in the matter and that the executive management couldn't provide any details or comments.

Minority shareholders in Souq.com have not approved the sale, which will reduce the Dubai-based company's market value by as much as $220 million, compared to Emaar Malls' bid.

Souq.com's shareholders include Tiger Global Management and South Africa’s Naspers Ltd, alongside Standard Chartered Plc. The company operates in several Arab countries including the UAE, Saudi Arabia, Egypt and Kuwait. It also has a development and technical support centre in Jordan.

Translated by: Nada Adel Sobhi