Souq-Amazon and Careem-Uber Acquisition Deals: An Analytical Study of the Two Merging Giants in the UAE

This paper involves a pioneering study that delves into the relationship between the acquisitions of UAE based companies and the diversification of the UAE economy. More specifically, it studies the acquisition of Dubai based ride-hailing company Careem by ride-hailing giant Uber Technologies, Inc. and the Dubai based e-commerce company Souq.com by e-commerce giant Amazon.com, Inc.

This paper uses a qualitative method of research and employs the use of secondary sources from economic journals and books as well as news reports and articles. This study deploys case study research design in order to understand the focused efforts of the two giants and how the acquisitions have led to much growth in GDP and an overall increase in the diversification of the UAE economy. The findings of this study reveal that the said acquisitions are likely to lead to efficiency and add competition to domestic companies in the e-commerce and ride-hailing sectors in the market in the UAE. They are also expected to help meet the growing demands of customers owing to their greater global capabilities bringing in international commodities and services. These acquisitions can also become a motivation for innovation in the region, especially with the increased human and physical capital.

This study is preliminary in nature, as the acquisitions are very recent developments, in finalization stages. The information available on the same was very limited at this point in time. There is certainly scope for further research on the subject both as a quantitative and qualitative assessment.