Saudi-backed e-commerce platform Noon is preparing for a potential stock market listing within the next 2 years, founder Mohamed Alabbar told the Financial Times. The company, valued at “close to” $10 billion after raising $2.7 billion since its 2016 launch, is considering dual listings in Saudi Arabia and the UAE.
Alabbar said Noon is “almost profitable” and outlined plans to expand aggressively while cutting costs through autonomous delivery vehicles, leased self-driving vans and three-wheelers that could operate round-the-clock. “Reducing drivers by 50% by 2027 would be amazing,” he noted.
The platform, which employs 40,000 drivers and serves Saudi Arabia, the UAE, and Egypt, is also exploring M&A opportunities and a possible entry into India. But competition remains fierce, with Amazon, which acquired Souq.com for $580 million just months after Noon launched, as well as niche vendors like Shein and Ikea. In food delivery, Chinese giant Meituan’s Keeta has also begun to challenge Noon in the UAE.
Despite these pressures, Noon is scaling fast. Analysts at Redseer estimate its 2024 gross merchandise value at $5-6 billion, though relatively low average basket sizes have weighed on profitability. Noon has also invested heavily in fresh food and grocery delivery, becoming a leader in the UAE, albeit at the expense of short-term margins.
Alabbar, who also chairs Emaar Properties, emphasised that unlike Amazon’s early days, Noon must show profitability before listing. “Our board members and the world and the banks don’t accept that nonsense anymore,” he said.
