Noon founder Alabbar reveals $2 bln investment plan for next 4 years

Noon founder Mohamed Alabbar plans to invest $2 billion in the digital marketplace over the next three to four years, according to a media report.

The move aims to reach a goal of delivery to customers within 15 to 20 minutes, Arabian Business reported.

Noon has just over four million daily users, which is growing “on a monthly basis”, said Alabbar, while the volume of package delivery is increasing every year by two-and-a-half times.

He indicated the new investment would be a 50-50 split between himself and his investors, and the Public Investment Fund (PIF).

E-commerce currently accounts for 2% to 2.5% of total retail in the region, compared with 20% to 22% in Western countries and China, Alabbar noted.

He said an IPO was still part of the plans, but listing possible in the next four to five years.