Emaar Properties, the parent company of Noon, has purchased the fashion venture for an undisclosed amount. The deal will yield a $171 million profit for Emaar. Noon is backed by Saudi Arabia’s sovereign investment fund Public Investment Fund and Dubai billionaire Mohamed Alabbar. Faraz Khalid, who founded Namshi, will be Noon’s chief executive. The deal is subject to regulatory approvals, however.
Noon, a Gulf e-commerce firm, is backed by the Saudi Public Investment Fund and Dubai billionaire Mohamed Alabbar. Emaar’s board of directors has approved the deal. The deal values Namshi at $335.2 million. The deal also includes the sale of the remaining 49 percent of Namshi to Noon.
Noon’s founder has an ambitious goal to invest $2B in the digital marketplace over the next three years. The aim is to expand the platform’s fulfilment processes and increase its network of couriers. The aim is to provide fast and convenient delivery for its customers. Noon has already launched the largest warehouse facility in Riyadh, Saudi Arabia, which stretches over 485,000 square feet and is expected to service millions of customers.
Despite the emergence of e-commerce in the UAE and the MENA region, the company is not immune to challenges. A lack of unified address systems and inefficient logistics processes are common obstacles in the region. These factors are expected to improve as the region digitizes.
The UAE has a rapidly growing e-commerce industry. The population is digitally savvy and affluent. This has led to an increased number of mergers and acquisitions in the region. Its e-commerce sector has become increasingly competitive and is primed for further growth.