Amazon and Souq.com announced earlier on Tuesday they had agreed to the takeover deal. Souq.com's current shareholders include South Africa's Naspers Ltd and Tiger Global Management.

"Today is a great day for the company. We are a company of builders. We've been on this journey for the last ten years and today (the) partnership with Amazon is an incredible and a great success story for the region," Souq.com Co-Founder Ronaldo Mouchawar told Reuters.

Mouchawar, who will continue with the company, also said Souq.com would expand its more than 3,000-strong workforce following the deal.

The value and terms of the agreement, which deal adviser Goldman Sachs called "the biggest-ever technology M&A transaction in the Arab world", were not disclosed.

Mouchawar declined to comment on the valuation.

(Reporting by Alexander Cornwell Editing by Hadeel Al Sayegh and Mark Potter)