Noon, the $1 billion e-commerce venture backed by Dubai businessman Mohamed Alabbar and Saudi Arabia’s sovereign wealth fund, has entered into a partnership with eBay to expand globally. Its primary competitor is Amazon-backed Souq.com based in Dubai. Both companies will also try to capitalise on the strong growth of online shopping in the Middle East.
The tie-up, which will allow regional customers to access products in the United States and other parts of the world, will be available in the second half of the year in the United Arab Emirates (UAE) and Saudi Arabia, media outlets in the Gulf reported quoting a statement by Noon.
Regional rival Souq.com was acquired by Amazon last year. Online shopping accounts for a tiny portion of retail activity in the UAE and the Gulf region.
Noon will offer products on the eBay marketplace through a standalone app and will provide doorstep delivery in the UAE and Saudi Arabia.
Noon is a joint venture between Alabbar, founder and chairman of Dubai-based developer Emaar Properties, and Saudi Arabia’s Public Investment Fund.