Sheikh Mohammed: Uber and Careem deal proves big business can thrive in Dubai 'desert'
Vice President and Ruler of Dubai said the multi-billion dirham agreement highlights the emirate's rapid development as a technology sector hub
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has hailed global transport giant Uber's multi-billion dirham purchase of rival Careem as proof of the emirate's growing status as a thriving business hub.
Uber Technologies has agreed a $3.1 billion (Dh11.39bn) purchase of the Dubai-based ride-hailing app in a move that will allow it to remain independent.
The deal, which is expected to be completed in the first quarter of 2020, is the largest technology sector transaction to be carried out in the Middle East, eclipsing Amazon’s $580 million acquisition of Souq in 2017.
Once the purchase is finalised, Careem will become a wholly owned subsidiary of Uber but both will operate their regional services and brands independently.
Sheikh Mohamed said the deal has proved the doubters wrong - and shown that big business can "flourish" in Dubai.
He said the groundwork for Dubai's development as a global player in the technology sector was laid 20 years ago, with the formation of a fledgling Dubai Internet City.
"In 1999, many people questioned our idea to establish Dubai Internet City in the desert," said Sheikh Mohammed.
"Two years ago, Amazon acquired the multi-billion dirham Souq and today, Uber acquired Careem for Dh11 billion.
"These giant companies flourished from the "desert" of Dubai."
Updated: March 26, 2019 06:53 PM