Top Sectors Driving the Growth of E-commerce in Oman

Top Sectors Driving the Growth of E-commerce in Oman

by Jayati Gadamsetty 19, Feb 2024

When you hear of E-commerce, Oman might not be the first place that comes to your mind. But underneath the sands, a digital revolution is brewing. E-commerce in Oman is undergoing a major development boosted by technological advancements and easy access to the internet by everyone.

The COVID-19 outbreak has contributed in a major way to the development of digitalisation. Due to the excess online audience, the Omani government has built the necessary infrastructure to support the digital era.

According to Mordor Intelligence, a research firm, as of 2024, the E-commerce market in Oman is valued at 0.66 billion USD. It is further expected to rise at an annual growth rate of 13.54% to reach 1.24 billion USD between 2024 - 2029.

Let's get into the details of Oman’s e-commerce growth by discovering factors behind the sector's success, trends and opportunities. Through this, you will be able to understand the shopping habits of Omanis.  

E-commerce in Oman - Understanding the Market

E-commerce is among the most rewarding business opportunities in Oman. Here are some points for your understanding of the opportunities the eCommerce sector holds:

  1. More than 75% of Omanis use the Internet, and this statistic is increasing 
  2. Oman’s e-commerce market contributes only 1% of the overall retail income.
  3. The e-commerce market is relatively new and has plenty of growth opportunities. 
  4. The major obstacle the e-commerce sector faces is customers still opting to purchase directly from shops instead of online.
  5. Currently, the market is still limited in the private sector, while the government is constantly encouraging the sector by promoting the ‘e-government' and  'digital society' services using the Information Technology Authority (ITA).

The government of Oman is actively advocating for the rise in the e-commerce sector by 

  • Allowing e-commerce operations and company registration in Oman.
  • Increasing digital infrastructure development
  • Strengthening  cybersecurity 
  • Customer safety

Oman has extensive mobile broadband coverage. The increasing usage of 4G and 5G tech is expanding the growth of the Oman E-commerce sector.

According to the Oman Telecommunications Company (Omantel), by the end of 2024, around three thousand 5G sites will be set up. This will help make e-commerce more accessible to customers. This move will result in the following -

  1. Increase in Online Shopping 

There has been a drastic increase in online shopping. Many online platforms offer a range of products and services to choose from, making it easily accessible to customers. Some of the online products are -

  • Makeup
  • Clothing
  • Groceries
  • Electronics
  • Ordering food
  • Booking tickets/ hotels
  1. Mobile Commerce Expansion

With the increase in the usage of smartphones, m-commerce has grown rapidly.

M-commerce is the abbreviation of mobile commerce.  All e-commerce platforms are creating user-friendly apps to accommodate customers.

  1. Elevated Digital Transactions

Online payment methods such as digital wallets, UPI apps and credit and debit cards have become extremely popular in Oman. Digital transactions ensure comfort and safety and assist in cashless dealings.

  1. Increase in Regional E-commerce Participants

Although multinational companies like Amazon are present in Oman, there is still an increase in the rise of local e-commerce companies. These companies serve more specific needs.

  1. Infusion of Technology

E-commerce businesses in Oman are using the tech listed below to boost operations, marketing and customer service.

  • Artificial Intelligence (AI)
  • Machine Learning (ML)
  • Data Analytics 
  1. Sustainable Development

Nowadays, being sustainable is the motto of many companies. The e-commerce sector in Oman also believes in the same. Companies are exploring options to minimise their carbon footprint.

Through this blog, we understand the bustling landscape of e-commerce in Oman and the accelerating forces behind it. Fashion, electronics, food, etc, are sectors that confirm the developing needs of Omani customers. 

Oman has a young population. The current generation is well-versed in online shopping and transactions. Due to this, there has been subsequent growth in the number of e-commerce platforms and businesses.

This leads to more competition, which is proven to be better for customers. Customers receive high-quality products and services at cheaper prices.

However, to build an e-commerce company, you must focus and understand the business thoroughly. Good quality internet, high security, and simplified delivery routes are important factors to keep in mind for a successful business.

Business consultants from Commitbiz will help you understand the business sector in Oman. Our professionals have assisted expats with business setups around the UAE for over 16 years and would love to be part of your journey. Contact us now.

FAQs

What are the top sectors contributing to the growth of E-commerce in Oman?

The top sectors driving E-commerce growth in Oman include electronics and gadgets, fashion and apparel, and groceries and food delivery services.

How does the fashion and apparel sector contribute to E-commerce expansion in Oman?

The fashion and apparel sector has witnessed a surge in online shopping as consumers increasingly prefer the convenience of browsing and purchasing clothing, footwear, and accessories from the comfort of their homes. E-commerce platforms provide a wide range of options and hassle-free delivery, fueling growth in this sector.

What role do groceries and food delivery services play in driving E-commerce growth in Oman?

The convenience and safety offered by online grocery shopping and food delivery services have led to their rapid adoption in Oman. E-commerce platforms allow consumers to order groceries and meals with ease, especially amidst the COVID-19 pandemic, contributing significantly to the expansion of E-commerce in the country.

Start your Entrepreneurship Journey Today in UAE from AED 5,760

Commitbiz will help you with every step of your success journey. You can get one-on-one mentorship from our experts and get guidance on how to clear the legal proceedings and grow your business.

Know More