Uber Technologies Inc. is set to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival Careem Networks FZ as early as this week, according to people with knowledge of the matter.

Shareholders in Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday, the people said.

Uber spokesman Matt Kallman declined to comment, while a spokesman for Careem wasn’t immediately able to comment.

The acquisition will come as a welcome boost for the Middle East’s nascent technology startup market and follows Amazon.com Inc.’s acquisition of Dubai-based online retailer Souq.com for $580 million in 2017. With Arab governments seeking to diversify their oil-based economies, young and tech-savvy entrepreneurs are starting new businesses and getting investors to back them.

Careem was valued at about $1 billion in a late 2016 funding round, making it one of the most valuable technology startups in the Middle East at the time. Its backers also include STV, the venture capital fund launched by Saudi Telecom. Co., Al Tayyar Travel Group Holding Co., and Daimler AG.

Picture source: The Verge