Now Reading
EMPG and OLX Group merge MENA and South Asia operations to form $1bn Dubai-based tech company

EMPG and OLX Group merge MENA and South Asia operations to form $1bn Dubai-based tech company

With this merger, OLX has become EMPG’s largest single shareholder with 39 per cent of shares

Dubai-based Emerging Markets Property Group (EMPG) and Amsterdam-headquartered OLX Group have merged their MENA and South Asia operations to form a Dhs3.6bn ($1bn) Dubai-based unicorn company.

EMPG and OLX both own popular portals within the UAE – Bayut is owned by the former while Dubizzle is owned by the latter.

The agreement includes a Dhs550m ($150m) investment round, led by existing EMPG shareholders and OLX group.

With this merger, OLX has become EMPG’s largest single shareholder with 39 per cent of shares.

In the UAE, both Dubizzle and Bayut will now be operated by EMPG. Outside of the UAE, EMPG also operates other portals including Zameen in Pakistan, Bproperty in Bangladesh, Mubawab in Morocco and Tunisia.

In addition to Dubizzle, the merger brings OLX entities in Egypt, Lebanon, Pakistan and several GCC countries into EMPG’s portfolio as well.

The aggregated value of properties sold in the UAE, Egypt, Lebanon and Pakistan is estimated at Dhs330bn, providing a commission pool for real estate agencies of over Dhs7bn per annum.

The merger allows EMPG to significantly enhance its online real estate operations.

“This deal would not have been possible without the supportive business environment created in Dubai which has paved the way for companies such as ours to grow and expand both locally and in the region,” said head of EMPG MENA, Haider Ali Khan, reported news agency WAM.

“This merger of EMPG and OLX will allow us to better serve our customers, given that both operate brands with a strong following and will allow us to leverage existing tech and data to paint a more accurate picture of the state of affairs in the real estate industry across the region. At the same time, we will be making significant technology investments to provide more value to all users of property, automotive and other segments of the Dubizzle and OLX platforms.”

Meanwhile, Ammar Al Malik, managing director of Dubai Internet City, added, “Even in these exceptional times, Dubai has demonstrated its attractiveness as an international investment destination. Our infrastructure and business-friendly environment have created an enabling ecosystem for entrepreneurs to scale up their ventures in a community that is home to everyone from startups to Fortune 500 companies.”

“The success of Dubizzle and Bayut shows once again that the UAE’s technology sector is growing thanks to the vision of our leaders to create a knowledge-based, innovation-driven economy,” added Al Malik.

You might also like

© 2020 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top