Souq.com, the e-commerce platform Amazon bought
for $580 million (Dh2.13 billion) last year, has opened a centre in Dubai that
will create 600 jobs as the company continues to expand its footprint and sales
in the Middle East.
The 23,000 square metre facility is the
company’s third UAE fulfilment centre, which enables sellers to have a Souq
store and ship their products to different customers, the company said in a
statement.
“The increased fulfilment
capacity also benefits our sellers, who comprise of thousands of small- and
medium-sized businesses, by enabling them to scale up their businesses on our
marketplace,” said Ronaldo Mouchawar, chief executive of Souq.
Souq is benefiting from the rise in online
shopping in the UAE and the region as a whole. The Emirates is the fourth most
prepared developing economy for e-commerce, according to a new index from the
United Nations Conference on Trade and Development (Unctad).
The e-commerce sector in the Middle East is
growing at the fastest pace globally with online sales expected to double to
$48.8bn by 2021, said a report by Fitch Solutions, a unit of Fitch Group. The
UAE is set to be one of the world leaders, with e-commerce spending in the
country increasing 170 per cent to $27.1bn in 2022, from $9.7bn in 2017.
“The new Dubai fulfilment
centre, along with the existing FCs, will enable Souq to handle the current and
future demand in the UAE, where a growing number of customers choose Souq for
their purchases,” said the company. “The new facility will also help Souq meet
is objective of growing selection and improving convenience for its customers.”
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