Amazon purchased the Middle East's biggest online retailer Souq.com on Tuesday for an undisclosed amount, a day after a state-backed firm disclosed an $800 million counteroffer. A joint statement described the purchase as expanding Amazon's influence into the Mideast as the state-supported firm Emaar prepares to launch its own retail website in a country known more for its luxury malls than online shopping. That could put Seattle-based Amazon in a head-to-head competition with a firm helmed by one of the sheikhdom's favored business magnates. "This is a milestone for the online shopping space in the region," Souq.com co-founder and CEO Ronaldo Mouchawar said in a statement. The announcement said the two companies expect the sale to close this year. "Together, we'll work hard to provide the best possible service for millions of customers in the Middle East," Russ Grandinetti, a senior vice president at Amazon, said in a statement. On Monday, Emaar Malls PJSC made public its bid for Souq.com in a filing on the Dubai Financial Market. The short filing, signed by Emaar Malls vice chairman Ahmad Thani al-Matrooshi, said the bid was made "in line with the strategy to align e-commerce with physical shopping." Rumors about Amazon's interest in Souq.com have circulated for months. In November, Emaar chairman Mohamed Alabbar reportedly met Amazon CEO Jeff Bezos at the state-backed firm's cavernous Dubai Mall, home to a massive aquarium and in the shadow of the Burj Khalifa, the world's tallest building it built. Dubai, the commercial capital of the United Arab Emirates, home to the long-haul carrier Emirates and the world's busiest international airport, also has luxury malls that even include an indoor ski slope. Its summer heat of over 50 degrees Celsius (122 degrees Fahrenheit) makes malls a major attraction for both shopping and leisure time in the city. While Uber and other online services firms work in Dubai, online retail shopping has yet to truly take off like it has in Western countries. ___ Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellap . His work can be found at http://apne.ws/2galNpz . AP-WF-03-28-17 0927GMT