‘Fares’ Acquires 50% of ‘Tawseel’ Delivery Services
UAE-based Fares Foundation for General Trading, which specialises in logistics and distribution through land, air and sea has acquired fifty per cent shares of Tawseel Delivery Services, a Sharjah-based food delivery service provider.
As per the acquisition agreement signed by the two parties, Fares will increase the number of its fleet of delivery vehicles. This agreement will enable Tawseel to provide faster services to customers and expand to new markets in UAE and the region.
The Foundation plans to expand Tawseel’s services to cover the UAE, KSA, other Gulf countries, and globally.
The acquisition furthers ongoing efforts by logistics and delivery sectors in the region to boost their corporate competitiveness, which is gradually becoming an imperative given the unprecedented increase in the demand for procurement services through an intermediary to save time and effort.
The acquisition reaffirms the attractiveness of Sharjah-based start-ups and SMEs to local and regional investors. Start-ups and SMEs have grown in Sharjah at an exponential rate in past years given the government’s incentive and support policies as well as a fluid local market, which helps them expand, compete and grow.
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A report by Forbes Magazine in 2016 indicates that the services and e-commerce sectors top the list of start-ups in UAE.
Commenting on the acquisition agreement, Mohamed Al Musharakh, Founder and CEO of Tawseel, said: “I would like to thank the Sharjah Entrepreneurship Centre (Sheraa), which played a vital role in the establishment and success of (Tawseel) as well as many other start-ups and SMEs in Sharjah.
“Sheraa’s role is fundamental to fostering entrepreneurship among young investors in Sharjah, and to providing them with the knowledge and expertise to run their businesses successfully.”
“This acquisition is an acknowledgment of our Tawseel’s commitment to excelling in delivery and logistics by attracting the expertise of the best in the field.”
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Statistics from the Ministry of Economy (MoE) indicate that by 2021, start-ups and SMEs will make up 70 per cent of the UAE’s Gross Domestic Product (GDP). The Emirate of Sharjah is home to 45,000 companies in this sector, which constitutes about 13 percent of the 350,000 SMEs in the UAE.
Sarmad Zadjali, Co-founder of Tawseel, pointed out that Sharjah is an ideal
start-up and SME incubator because its environment and infrastructure are ideal for new and emerging businesses to thrive.
Ahmed Saif bin Saed Al Suwaidi, Vice-Chairman of Fares Foundation, said: “Acquiring 50 per cent of Tawseel’s shares strengthens our service outreach to clients across B2B and B2C secrors in the UAE.
“Our firm belief in the markets’ stability and competitiveness in Sharjah and the UAE coupled with our expansion efforts has led to this new endeavour with Tawseel, which has an excellent track record of success that has been achieved in just over a year”
Mohammed Al Musharakh, Founder and Director General of Tawseel, established the company in 2017. Tawseel was founded with the support of the Sharjah Entrepreneurship Centre (Sheraa), with the aim of helping restaurants to expand their services professionally.
Tawseel’s fleet vehicles contributed to decreasing the cost of delivery by more than 60 per cent, as well as increasing the number of clients, making it one of the most significant distribution companies in a very short time, and one of the pioneers of customer service sector in Sharjah and UAE.
Fares Foundation for General Trading, established in 1985, is a national entity dedicated to fostering entrepreneurship and innovation.
