Amazon is in talks with Dubai-based Souq.com to purchase the online retailer for $1 billion, according to Bloomberg.
Souq.com currently delivers over 1.5 million products to customers across the GCC and Egypt.
Souq.com was founded in 2005 and has about 2,500 employees. The e-commerce company has often been described as the region's Amazon and is currently the largest online shopping platform in the Arab world.
At the beginning of November, Bloomberg reported that the American e-commerce giant was considering a bid to scoop up a 30 percent stake in the Dubai-based company. Some estimated that the investment would have put Souq.com's worth at as much as $1.2 billion.
The news also comes on the heels of Emirati businessman Mohamed Alabbar's >announcement that he will launch a game-changing online retail business in January.
Noon.com will launch with a $1 billion investment from Alabbar, Saudi Arabia's sovereign wealth fund and other investors.
Amazon founder and CEO Jeff Bezos was spotted with Alabbar just prior to the big announcement, leading to speculation that he is involved with the new e-commerce site.
Souq.com will be dwarfed by the 20 million Noon.com plans to offer.
"We're turning the e-commerce environment in Middle East upside down," Alabbar said at a media launch earlier this month, according to Arabian Business, "and then we're going to turn it upside down again in another six months."
With Noon.com hailing itself as a "Quantum leap in e-commerce" and with Amazon's hands in the mix, the region's online retail sector looks poised for a major shake-up.