Ronaldo Mouchawar: How I created Souq.com


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Ronaldo Mouchawar co-founded Souq.com in 2005 alongside Jabbar Internet Group’s Samih Toukan and Hussam Khoury.

Ronaldo Mouchawar co-founded Souq.com in 2005 alongside Jabbar Internet Group’s Samih Toukan and Hussam Khoury.

Ronaldo Mouchawar is standing at the entrance of Souq.com’s cavernous warehouse in Dubai’s Al Quoz district, getting patted down by one of his own security staff.

“There’s always rumours flying around,” the chief executive smiles, batting away a question about a recent report that suggested his firm might be bought by American internet leviathan Amazon. “You see, we touch on so many people.

“There was a recent study in the UAE that 50 percent of online shoppers have bought on our site, and we know from our traffic that 50 percent of the population come to the site once a month.”

Perhaps it’s not surprising that the only route in and out of the Souq.com fulfillment centre looks more like an airport security barrier than a passageway. Despite only being opened just over a year ago, the warehouse is packed to the rafters with flat-screen TVs, tablets, clothing, diapers and jewellery.

For Souq.com itself, it’s not just products on the shelves that are starting to stack up — the numbers are looking pretty good as well. It’s by far the Middle East’s biggest e-commerce site, and quite possibly the region’s biggest website full stop. It sells well over 200,000 products, with a network of almost 75,000 traders. It grew last year by 170 percent and has expanded ten times over in the last two years alone, with around 22 million visits last month.

Small wonder, then, that investors have been beating a path to the firm’s door. Launched in 2005 as an auction site linked to internet portal Maktoob, the site has already raised $150m in financing, with $75m received from Naspers just two weeks ago. With Naspers already having a 36 percent stake in the company prior to that investment, and with the South African firm remaining a minority partner, that deal values Souq.com at $577m, at the very least. Not bad for a firm that started out with only five employees less than a decade ago.

But you get the impression from Mouchawar — a tall, affable Syrian who co-founded the site alongside the Jabbar Internet Group’s Samih Toukan and Hussam Khoury — that the story is just getting started.

“If you look at what’s really transacted online as opposed to offline in the region, we still have a huge gap to fill,” he says. “There’s 1.5 to maybe 2 percent in this market sold online, whereas elsewhere in the world is double digits — in the UK, it’s maybe 18 percent.

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Posted by: turk971

I have been one of their repeat customers and yes there are good deals in the site. However I would like to point out that the main issue with them right now that they need to address immediately is DELIVERY TIME. I always have issues with delivery time whenever I order goods from them. I have raised complaints in almost all my purchases for the same reason. It seems their partner in product physical delivery is not serious enough to meet this CUSTOMER EXPECTATION. In the long run if souq.com will not address it, they will continue to loss customers to competition. Already I have ordered goods from their major competitor in UAE and never had the same issue with them. For now, I go back to souq.com only when the product I want is not available with their competitor.

Posted by: Expat

Online market in Dubai is very poor.
I never dealt with souq.com .. but there is definitely a great potential in this market.

Posted by: mohan

I continue to love the site, there is a good range of products available and decent prices.
never had any problems dealing with them.

Posted by: Syed Muhammad Hussain

I ordered laptop from them on 26th March and it is 13th April now, neither I have received the laptops nor my money back.

I have called them several times but to no avail.

Posted by: turk971

I suggest never use credit or debit card when purchasing online. Always opt for COD (Cash On Delivery) that way you don't need to worry when the goods never reach you. This is how I do my online purchasing all the time.

Posted by: Rob Jones

Are people still using souq.com?
When it first launched it was amazing, it was made for the people, for bidding wars and great deals...
Now it seems it only wants money. And it is quite obvious that people no longer visit the site, with all their crazy deals being advertised to get a new phone or tv at a fraction of the cost, if they register. What they dont tell you, is that there is only 1 of the product, and chances are, when you log on to buy it, its automatically 'sold out'...
Didnt souq.com recently get its 3rd or 4th injection of capital to keep it from going under?

Posted by: AWSF

correct..before it was great then they have become pro MONEY not pro PEOPLE! i recently click to one of their ad "FREE DELVIERY" amount to 54 only and they punched in 38aed "SHIPPING FREE" what made it worst you have to pay first the WHOLE amount then they will credit it back "GOD KNOWS WHEN.." the when you try to have it debited back to your account only by 10's denominations..so bye-bye 1-9 amount..

the other one is same like you said a 499 ~ 40' LG TV then when you click it " the qty you can purchase is limited to 1 ONLY" 1 just clicked "1" "ONLY".

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