The UAE’s e-commerce industry is expanding, driven by increased online shopping demand and investment. In a move that will increase Noon’s digital product and service offering to include additional fashion and lifestyle brands for the region’s consumers, the e-commerce company completed the acquisition of online fashion retailer Namshi. The deal, which is now final and effective, was sealed with a total cash consideration of over $335 million.

According to a statement, Namshi will continue to operate independently while occasionally utilizing Noon’s fleet, logistics, fulfillment networks, and internal e-commerce specialists. The e-commerce platform will continue to support Namshi’s development as a standalone division.

“We know that both Noon and Namshi have a long way to go, but that just means that the opportunity ahead remains immense,” said Hisham Zarka, chief technology officer of Noon Group and co-founder of Namshi.

“This merger will enable Namshi to make deep and long-term investments, and in the months and years to come, our customers and partners can look forward to better assortment, pricing, and service as these investments are realized,” Zarka added.

After receiving shareholder approval in September 2022 to sell its holdings in Namshi to Noon, Emaar Properties completed the deal. 

When the businesses signed a legally binding agreement for sale in August 2022, Emaar stated that the Namshi transaction was consistent with its strategy to sell off properties that were not essential to its core business and to generate and maintain value for its shareholders.