Wego, the online travel marketplace in the Middle East and North Africa (MENA) region, plans to acquire Cleartrip’s Middle East business in a deal that is expected to close in the second half of 2022. Dubai Internet City, where the two companies are located, has a history of significant partnerships aimed at geographic and product expansion and is one of the birthplaces of regional unicorns. As part of a series of entrepreneurial successes, this project reinforces Dubai’s reputation as a global center of business, innovation, and talent.
Wego has become the largest online travel marketplace in the Middle East and North Africa region, with approximately 9 million app downloads in 2021. The company expanded into the region in 2010 and in 2018, acquired Riyadh-based Flyin.com to expand the online travel market in Saudi Arabia.
In recent years, the travel and tourism industry in the Middle East has experienced tremendous growth owing to its location between key global regions such as Europe, North Africa, and Asia. The rapid urbanization of Dubai, Riyadh, and Amman has also contributed to its popularity as a leisure and business destination for regional and global travelers.
Despite setbacks in the global travel and tourism industry caused by COVID-19, the World Travel and Tourism Council (WTTC) predicts that travel and tourism will contribute US$8.6 trillion to the global economy this year. WTTC also forecasts that the Middle Eastern sector’s contribution to the region’s total economic output may increase 28 percent year on year.
With a young, technologically savvy population, the online travel market in MENA has witnessed a significant rise, much like the rest of the world. According to MENA Research Partners’ research conducted in 2019, the online travel market in the GCC will reach US$15 billion by 2023. In light of Dubai’s advanced infrastructure and reputation as a popular tourist destination, the city represents a highly strategic location for players in the market. Dubai Airport remained the world’s top international aviation hub in 2021, serving 20.7 million passengers, and Dubai-Riyadh emerged as the most active route.
Wego will be able to take advantage of Cleartrip’s advanced digital infrastructure and resources to expand its operations to meet the growing demand in the region and provide a wide range of services and products to consumers through the acquisition. This merger also marks an important chapter in the city’s business ecosystem, strengthening the tech-tourism sector.