Souq.com: The Rise, Evolution, and Legacy of the Arab World’s Largest E-Commerce Platform

Often referred to as the “Amazon of the Middle East,” Souq.com revolutionized online buying in the Arab world. Beginning from its modest beginning in 2005, Souq.com ballooned to become the region’s largest e-commerce marketplace, linking millions of buyers with millions of products. Its phenomenal growth spurt caught the attention of Amazon, which subsequently purchased Souq.com for US$ 250 million in 2017, marking a turning point in the Middle Eastern digital landscape. But how did Souq.com build such heritage, and what made it enforce the integration with Amazon? In this blog, we unpack Souq’s journey, its influence over the regional e-commerce landscape and how it eventually becomes Amazon’s Middle Eastern bridge.

By 2012, with Wisam Daoud becoming CTO and substantial funding from investors like Naspers and Tiger Global Management, Souq.com was growing exponentially, scaling its operations to serve millions of customers. The website exceeded 10 million visits per month and offered more than 8 million products in every imaginable category, from electronics to fashion and health and beauty. A pioneer, Souq.com set the trend for other online marketplaces in the region; its specific regional difficulties included payment processing and delivery logistics.

When the popularity of Souq.com began to skyrocket, international e-commerce players noticed. In 2017, the platform was acquired by Amazon for allegedly around $580 million. This acquisition made Amazon officially step into the region and granted a stronghold foothold where they could leverage the existing structure, customer base, and local expertise of Souq. For Amazon, the value gateway portrayed by Souq.com fuelled the acquisition of this site to drive regional plans.

The site continued to exist under its original brand until Amazon eventually phased the brand out and rebranded Souq’s platforms in the United Arab Emirates as Amazon.ae, in Saudi Arabia as Amazon.sa, in 2020, and eventually in Egypt as Amazon.eg, in 2021. This strategic change symbolized an end to an independent brand of Souq.com but built the door open to Amazon deep within the Arab world as an important integration. Souq.com was more than a digital marketplace; it was a cultural revolution for the consumers of the Middle East. It was often commonly called “Amazon of the Middle East” long before its acquisition because of its focus on aspects such as customer service, secure transactions, and seamless shopping experiences. Souq will play an important part in introducing millions to online shopping, close the gap between the traditional store and digital commerce, and build trust associated with e-commerce in a region where online retail is still coming of age.

Souq had invested heavily in logistics and fulfilment centres across the UAE, Saudi Arabia, Egypt, and Kuwait. This massive investment formed a great foundation for Amazon’s growth in the region. Influence on the Digital Economy Souq has influenced the digital economy not only by the impact and portfolio but also through its legacy left behind by some former subsidiaries like QExpress associated with delivery, as well as Payfort that transformed into Amazon Pay in 2020.

And so, Souq.com became Amazon’s regional platforms: a new story for e-commerce in the Arab world. The story of Souq had great visions, capacity to adapt, and resilience-the same qualities that took it from a small auction site to a regional powerhouse into Amazon’s global network. Today, through Amazon.ae, Amazon.sa and Amazon.eg, Souq.com’s legacy continues to craft the digital market in the Middle East-innovating from pioneers and inspiring new start-ups to expand the region’s digital economy.