Noon.com launches operations in Saudi Arabia

Noon, the US$1 billion e-commerce platform co-founded by the Emaar Properties chairman Mohamed Alabbar and Saudi Arabia’s Public Investment Fund (PIF), started operations in Saudi Arabia yesterday.

The website went live in the UAE in September.

“Noon brings a dynamic, locally-driven and customer-oriented digital marketplace to the kingdom serving the community and offering a new and improved experience,” Mr Alabbar said.

Saudi Arabia is entering a new era of economic and digital transformation led by the kingdom’s Vision 2030 programme.

The e-retail joint venture is 50 per cent held by PIF, while a group of Arabian Gulf investors including Mr Alabbar control the remaining stake.

The “Arabic-first” platform in Riyadh will sell a range of products across categories including electronics, fashion, beauty, baby, home and kitchen appliances and groceries, in partnership with established retailers and small and medium-sized businesses .

Noon has a dedicated distribution hub, logistics network and secure payment gateway to serve the kingdom, the company said.

Mr Alabbar said yesterday he will offer Saudi entrepreneurs, including start-ups, the opportunity to be part of a fast-growing digital ecosystem.

Noon’s expansion to Saudi Arabia comes amid a flurry of e-commerce deals in the Middle East as investors jostle for a share of the region’s fast expanding sector.

The value of all online sales in the Middle East is expected to double to $48.8bn by 2021, according to BMI Research, a Fitch Group company.

Earlier this year, US company Amazon snapped up Dubai online retailer Souq. com in a deal worth $580 million.