Dubai Economy and Souq.com have signed a ‘digital protection’ pact to safeguard consumer rights.
The pact aims to promote consumer confidence within the region’s growing e-commerce industry.
It makes Souq.com the first certified e-commerce website that displays the consumer protection logo of Dubai Economy.
The ‘Digital Protection’ initiative certifies e-commerce websites as per consumer protection policies and focuses on training them on complying with the UAE laws and regulations, said Mohammed Ali Rashed Lootah CEO of Commercial Compliance and Consumer Protection (CCCP).
In line with the economic agenda of Dubai, CCCP support the transformation of Dubai into an innovative service-based economy to enhance its business environment and accelerate productivity and growth, said Lootah.
Two months ago, global e-commerce giant Amazon agreed to acquire Souq in a deal that will give the US-based e-commerce giant a footprint in the high-growth Middle East market.
While the financial details were not disclosed, media reports placed the value of the deal at $650 million.
The acquisition will allow Amazon, which has never done any business in the Middle East, to immediately begin trading on a well established, market-leading platform.
Souq claims to command 78% of all e-commerce traffic in the MENA region, and with online purchases accounting for only 1 to 2% of regional retail sales, there is a tremendous opportunity for growth.
The Dubai-based firm offers 8.4 million products on its site, having recently begun selling books and groceries.
Amazon, a global giant, offers an estimated 40 million products.
The deal also came soon after Emaar Malls, which is headed by Dubai billionaire Mohamed Alabbar, confirmed that it made an offer to acquire Souq.com, challenging the bid from Amazon.com.
Amazon also agreed to acquire PayFort, an online payment platform for e-commerce websites across the Arab world, as part of its deal to buy Souq.
Purchasing the payments technology ensured that the US-based company received a localized platform with regional expertise.