Dubai’s premier developer, Emaar, has consolidated its position as the leading property developer byselling off one of its non-core businesses, fashion accessories e-commerce portal Namshi, to Noon. The sign-off for this $335 million deal will be done on August 24.
The company has alsorevealed that this transaction will result in a net profit of $171 million based on the asset value recorded in Emaar’s books as of June 30, 2022. The sale proceeds will be invested in property development, Emaar’s core business.
Emaar’s listing in the Dubai Financial Market has the company saying, “The transaction is in line with Emaar’s strategy to divest assets that are not core to its primary business, so as to create and sustain value for its shareholders.”
This will see a consolidation in Dubai’s e-commerce market. While Amazon, with a net sale of $500 million, is the market leader, Namshi and Noon complete the list of the top 3 e-commerce portals in the country.
According to the Dubai Chamber of Commerce and Industry, the retail e-commerce market in the country has grown exponentially in the recent past. It swelled up by 53% annually and hit a record $3.9 billion in 2020, with the sector accounting for 8% of the overall retail market.
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