Nearly two years after buying Souq, the Middle East's biggest online marketplace, Amazon is downplaying its UAE brand and preparing to launch its own platform in the region, according to a report from US broadcaster CNBC.
According to the report, Amazon is telling some of its largest sellers in North America to make sales to Middle East customers through its main website instead of on Souq.com. It is promoting a single e-commerce brand and back-end system for Amazon in the region, while also encouraging more US-based sellers to expand in the UAE and Saudi Arabia.
Wissam Kamel, head of PR and communications for Amazon Middle East, responded to an email query from The National saying: "We have no comment, as we do not comment on rumours or speculation".
Ronaldo Mouchawar, chief executive of Souq, also declined to comment.
The Middle East is a huge potential market for Amazon – an opportunity it seized when it made its largest-ever international acquisition with its purchase of Souq for $580 million (Dh2.13 billion) in March 2017.
The region’s e-commerce sector is growing at the fastest pace globally, with online sales expected to double to $48.8bn by 2021, according to a report by Fitch Solutions Macro Research. E-commerce spending in the UAE is expected to increase by 170 per cent to $27.1bn in 2022, from $9.7bn in 2017.
Amazon has room to grow in its international markets. While it dominates in the United States – where it accounted for about one in two e-commerce transactions last year and more than two-thirds of the company's revenue – it has struggled to find a successful formula in countries abroad. Excluding the US and Canada, Amazon is loss-making.
Losses from its international operations were $642m in the fourth quarter, the e-commerce giant said on Thursday. Though its international operating loss shrunk from $919m a year earlier, according to Reuters, regulations in India, where the company plans its biggest international expansion, are changing to favour local e-commerce sellers over those that are foreign-owned. This could mean that Amazon may have to look elsewhere for international growth.
According to CNBC, it is not clear whether Amazon plans to close Souq or is attempting to funnel traffic and sales to its main website.
For now, Amazon still lists dozens of job openings from software developers to vendor managers for Souq, with positions offered in Amman, Cairo and Riyadh.
Souq is also expanding and plans to hire 600 new people in Dubai this year.
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
MATCH INFO
Manchester City 6 Huddersfield Town 1
Man City: Agüero (25', 35', 75'), Jesus (31'), Silva (48'), Kongolo (84' og)
Huddersfield: Stankovic (43')
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
RESULTS
Bantamweight
Victor Nunes (BRA) beat Siyovush Gulmamadov (TJK)
(Split decision)
Featherweight
Hussein Salim (IRQ) beat Shakhriyor Juraev (UZB)
(Round 1 submission, armbar)
Catchweight 80kg
Rashed Dawood (UAE) beat Otabek Kadirov (UZB)
(Round-1 submission, rear naked choke)
Lightweight
Ho Taek-oh (KOR) beat Ronald Girones (CUB)
(Round 3 submission, triangle choke)
Lightweight
Arthur Zaynukov (RUS) beat Damien Lapilus (FRA)
(Unanimous points)
Bantamweight
Vinicius de Oliveira (BRA) beat Furkatbek Yokubov (RUS)
(Round 1 TKO)
Featherweight
Movlid Khaybulaev (RUS) v Zaka Fatullazade (AZE)
(Round 1 rear naked choke)
Flyweight
Shannon Ross (TUR) beat Donovon Freelow (USA)
(Unanimous decision)
Lightweight
Dan Collins (GBR) beat Mohammad Yahya (UAE)
(Round 2 submission D’arce choke)
Catchweight 73kg
Martun Mezhulmyan (ARM) beat Islam Mamedov (RUS)
(Round 3 submission, kneebar)
Bantamweight world title
Xavier Alaoui (MAR) beat Jaures Dea (CAM)
(Unanimous points 48-46, 49-45, 49-45)
Flyweight world title
Manon Fiorot (FRA) v Gabriela Campo (ARG)
(Round 1 RSC)
The Gentlemen
Director: Guy Ritchie
Stars: Colin Farrell, Hugh Grant
Three out of five stars
RESULT
Manchester City 1 Sheffield United 0
Man City: Jesus (9')
MATCH DETAILS
Juventus 2 (Bonucci 36, Ronaldo 90 6)
Genoa 1 (Kouame 40)
The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.
