Competition is always welcome in any industry. This drives the industry forward and offers choices to people. Online retail giant Amazon might be dominating now, but that doesn’t mean that it doesn’t have its share of competitors. Now there is a new competitor on the block coming from Dubai.
Mohamed Alabbar is a real estate tycoon from Dubai, and he is willing to create an online retail business that could be a rival to Amazon. This is Noon, an eCommerce firm that has been launched in September 2017. Being a rival to the world’s largest online retailer is no small task though.
Alabbar believes he has an advantage, since he comes from the Middle East itself and so knows the region better than Amazon does. This, despite Amazon acquiring Souq.com, another online retailer that is also based in Dubai. However, Alabbar isn’t fazed by this challenge from Amazon.
The Amazon of the Middle East
The Middle East is still a largely untapped market though, with eCommerce only making up 0.5 percent of the UAE economy. However, there is still much potential in it as well as some of the wealthiest nations can also be found there.
“The Middle East is an untapped opportunity for eCommerce, ripe for the taking,” Adel Belcaid, Consultant from A.T. Kearney.
This is what Alabbar is taking advantage of, while Amazon is still trying to establish itself in the region.
Noon has many products to offer. This ranges from fashion to electronics, and anything else in-between.
However, the site is only available to Middle Eastern households. That might soon change though, as more people are shopping online. Noon will likely expand to other regions if it wishes to stay in competition with Amazon.
Would there be many others who would compete with Amazon? How would online retailing evolve in the coming years? Post your comments below.