Emaar Malls on Monday announced its complete acquisition of leading regional fashion e-commerce retailer Namshi in a deal worth AED 475.5 million ($129.5 million).

This transaction comes after Emaar Malls acquired the remaining stake held by Global Fashion Group (GFG) in Namshi, according to a filing to the Dubai Financial Market (DFM).

In 2017, both GFG and Emaar Malls entered into a strategic partnership under which Emaar Malls acquired a 51% stake in Namshi in consideration of $151 million.

“Emaar Malls’ full acquisition of Namshi is a natural evolution of the company’s digitally-driven strategy to leverage the growing e-commerce market in the Middle East and North Africa region,” the statement highlighted.

Acquiring Namshi supports Emaar Malls’ position in the rapidly growing online market in the Middle East, complementing its physical retail assets portfolio.

Namshi’s “remarkable growth” underscores the potential for the fashion e-commerce segment in the region, where, every day, a larger number of people use the internet to meet their fashion aspirations,” commented Mohamed Alabbar, chairman of Emaar Properties and board member of Emaar Malls.

Namshi, which was founded in 2011, was the first of its type to provide an online lifestyle destination for fashion and beauty to the Middle East and North Africa (MENA) region, as it displays a selection of 700 brands includes leading global names.

Its sales in the UAE and Saudi Arabia increased by 16% year-on-year to AED 849 million ($231.3 million) in 2018, according to the statement.

“Today’s acquisition underlines the acceleration of our ‘Digital Forward’ strategy to leverage the growing e-commerce market in the Middle East and North Africa region,” Emaar Malls CEO Patrick Bousquet-Chavanne added.

By the end of Monday’s session, Emaar Malls’ stock fell 2.17% at AED 1.80%.

-Mubasher