Emaar acquires Namshi

Emaar Malls acquired 51% of Namshi for 151m USD

Global Fashion Group, owned by Rocket Internet, has announced a strategic partnership with Emaar Malls, which have some of the biggest shopping malls like Dubai Mall in the region and owned by property developer Emaar Properties.

Emaar Malls will acquire a 51% stake in Namshi, the leading online fashion retailer in the Middle East, for 151 million USD including investment in the company for its future growth, with GFG retaining the remaining as 49% co-owner. This partnership will accelerate Namshi’s development in the region while on the other hand give big possibilities to Emaar Malls to grow in ecommerce sector. It has been expected that partnership like this happen, taking into consideration that Emaar was interested to buy Souq.com, the biggest e-commerce site in the region, which was acquired by Amazon for 650m USD earlier this year.

Namshi acquired by Emaar

“The acquisition of a majority stake in Namshi underlines our digital-driven strategy to leverage the growing e-commerce market in the Middle East and North Africa region,” said Mohamed Alabbar, chairman of Emaar Malls. “Namshi offers a perfect fit for Emaar Malls in accelerating its focus on multi-channel retailing, and creating long-term value for its stakeholders.”

“We are very excited to welcome Emaar Malls as our majority shareholder,” said Hosam Arab, MD of Namshi. “We are confident that this partnership will unlock further opportunities and help accelerate the development of Namshi for the benefit of our customers. We would like to congratulate and thank our team for their tireless efforts in making Namshi the Middle East’s premier fashion ecommerce destination and we look forward to continuing this journey together with Emaar Malls and GFG.”

Russian sites and services banned in Ukraine

Russia and Ukraine have had very tense relations since the last several years, and it seems currently relations are at all time low. As a result of that, Ukrainian president Petro Poroshenk signed on Monday a decree which prevents the operation of Russian sites and online services in Ukraine.  To be precise – a so called web sanctions apply to 468 legal entities and 1228 individuals from Russia.

It is a well-known fact that majority of the most popular sites and online services come from Russia, and two online groups Yandex and Mail.ru owns the biggest number of those popular services. Ukraine users will not be able to use Yandex, Mail.ru. and services like Odnoklassniki (OK) and Vkontakte (VK) which are part of Mail.ru Group and many services from Yandex like search engine, maps, taxi app etc.

Both Yandex and Mail.ru said that this decision will not have significant effect on their financial results.  Mail.ru rep. expressed dissapointment with this and called it as “clearly politically-driven decision”. Around 25 million Ukrainian users will be affected, who regularly use online services from Russian companies.

This will give opportunity to local and foreign companies to gain better market share in the Ukrainian market. From the Ukrainian community many are against this decision and call it as “censorship”.