Middle East shopping site Noon to enter China market

Noon.com currently makes deliveries to Saudi Arabia and the United Arab Emirates, the region’s largest economies. (Courtesy FAB)
Updated 13 July 2018

Middle East shopping site Noon to enter China market

  • The $1 billion e-commerce platform is looking to build a network of brand owners in China and connect them to Middle East customers
  • CEO of Noon Faraz Khalid: We spotted a gap in the market for high-quality Chinese products

LONDON: Middle East online retailer Noon.com is expanding into Asia with plans to enter the groceries delivery sector in China during the next six months. 

The $1 billion e-commerce platform is looking to build a network of brand owners in China and connect them to Middle East customers.

“We spotted a gap in the market for high-quality Chinese products,” said Faraz Khalid, CEO of Noon.

“We want to work with the best selection of marketplace suppliers, a set of reliable, high quality sellers, to bring their inventory to customers in the Middle East,” he told Arab News.

The company has also announced plans to open two new entities in China.

“We’re looking to partner with top brand owners and marketplace platforms to help us curate a wider and more diverse assortment of products for our customers in the Middle East,” said Noon.com founder Mohammed Alabbar.

Representatives from the company have been building relationships in the Chinese market with a view to expanding logistics capabilities on the ground and acquiring office space there in the future. 

“We understand that Noon will be looking to have goods delivered by the brand holders themselves, or will have to have a number of local depots in China, which should help them boost their business further,” said Vadym Gurevych, managing director of e-commerce company Holbi Group. 

Noon’s plans to accommodate e-commerce payment methods that are already being used by the Chinese public will make purchases “easy and straightforward for Chinese customers,” he added. 

The company is working with a leading financial services provider to develop efficient and effective payment solutions.

During an interview with CNN’s John Defterios, Alabbar, who co-founded the company with Saudi Arabia’s Public Investment Fund last year, expanded on plans to reach further afield.

“I think we should not be very shy even to look a little bit east,” he said. “We should really look at Pakistan and countries like that … And I think if you were to go to North Africa, the same thing, the base is quite good in that area as well.”

The Riyadh-based company, which was was set up to provide an “Arabic-first” e-commerce platform and tap into the region’s burgeoning online retail market, competes with Dubai-based Souq.com, which was purchased by Amazon in 2017 for $650 million.

Last year Noon partnered with eBay to provide customers with access to products in a wider range of markets. 


Dubai rents may be bottoming out as ‘green shoots’ appear

Updated 20 January 2020

Dubai rents may be bottoming out as ‘green shoots’ appear

  • An estimated 45,000 homes were completed in Dubai in 2019 according to Chesterton estimates

LONDON: Confidence may be returning to Dubai property despite a bloated market for off-plan homes, according to a report from Chestertons, the real estate broker.

Although apartment and villa sales prices were down 2 percent and 3 percent respectively in the fourth quarter of 2019 compared to the previous quarter, rental rates are stabilizing.

But supply issues continue to represent the biggest challenge facing the market, with 45,000 new units completed in 2019 and that expected to double this year.

“The Dubai residential market in Q4 2019 is alluding to a more positive outlook for 2020 thanks to the slowdown of sales price declines and the leveling of rental rates,” said Chris Hobden, of Chestertons MENA. “This does, however, have to be tempered by the volume of new units scheduled for delivery in 2020, which makes the short-term recovery of prices in the emirate unlikely.”

In the rental market, no movement was witnessed in the fourth quarter with the market supported by a draft law which would fix rental rates for three years upon the signing of a contract. 

“To ensure high occupancy in 2020, landlords will have to be realistic in the face of tough market conditions. The incentives previously offered to tenants, such as rent-free periods, multiple cheques and short-term leases, will continue, with an increase in tenant demand for monthly direct debit payments also likely” added Hobden.