Online retailer giant Amazon.com, Inc.(NASDAQ:AMZN) has reportedly settled and agreement for a takeover of Middle-East online retailer Souq.com, beating a last minute offer by Dubai billionaire Mohamed Alabbar’s Emaar Malls .

Meanwhile both companies have not disclosed the terms and conditions of the agreement. The takeover is planned to close in 2017, according to a joint statement on Tuesday.

It was reported recently that that Amazon.com, Inc.(NASDAQ:AMZN) is very close to the acquisition of Souq.com, which was founded 12 years ago by Syrian-born entrepreneur Ronaldo Mouchawar.

Meanwhile US giant is reportedly paying less than Emaar’s offer of $800 million, making it lower than the $1 billion valuation at the time of Souq.com’s funding round last year.

The agreement has got the green signal by the Dubai government which has been very keen on technology.

Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid al-Maktoum said Amazon’s entry into the region showed “Dubai’s position as a regional and global hub for the world’s biggest and leading organizations.”

Dubai has been an international trade, transport and tourism hub, hosting regional headquarters for many multinational firms.

“By becoming part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers,” Souq.com Co-Founder Ronaldo Mouchawar said in the statement.

Furthermore the bid made by Emar was not the first online move to be made by Alabbar, who made his fortune and fame as chairman of Emaar Properties , the Dubai government-linked developer of the world’s tallest building. Emaar Malls is the retail unit of Emaar Properties.

Moreover Alabbar last year said in a statement that he plans to launch his own e-commerce company in a treaty with Saudi Arabia’s Public Investment Fund (PIF).