Oman E-commerce Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Oman E-commerce Market Trends and Insights

Government Vision 2040 Digital-Economy Programs Drive Infrastructure Modernization

Vision 2040 accelerated Oman’s e-commerce infrastructure build-out as ministries shortened licensing cycles, digitized procurement rules, and funded last-mile logistics nodes. Foreign investment rose in fulfillment centers and payment-tech partnerships after barriers that once deterred SME onboarding were dismantled. Talent initiatives in coding and digital marketing improved merchant readiness, while joint ventures with global technology firms embedded advanced fraud-management and omnichannel checkout frameworks. These reforms have drawn regional cross-border merchants that now view the Oman e-commerce market as an efficient GCC entry point. Rising digital-skills penetration is expected to deepen merchant catalog diversity and bolster consumer trust, supporting consistent double-digit growth.

Expansion of National e-Payment Gateway Creates Seamless Transaction Environment

The Central Bank of Oman linked domestic issuers, acquirers, and international schemes into a single gateway that cut transaction fees and standardized security protocols. Phase-one deployment in Muscat and Sohar demonstrated a tangible lift in SME acceptance rates, prompting accelerated roll-out to interior governorates. Unified tokenization now supports both traditional cards and emerging wallets, reducing checkout abandonment and enabling auto-settlement for cross-border orders. Gateway interoperability with UnionPay and GCC-Net simplified currency conversion, which has fueled Chinese platform sales in the Oman e-commerce market. Early data from licensed PSPs shows higher daily transaction throughput and lower dispute ratios, signaling improving consumer confidence.

Surge in Mobile-Payment Transaction Volumes Transforms Consumer Behavior

Smartphone adoption exceeded 82% in 2024 and underpinned a jump in QR-code and near-field wallet usage.^{[1]Visa, “25% of transactions still cash in Oman,” visa.com} Young shoppers shifted away from cash-on-delivery and cards toward device-based payments that settle instantly. Merchants prioritized SDK integration for wallets such as Bank Muscat Pay and O-Wallet, reporting that mobile now represents the majority of digital revenues. Banks reciprocated by embedding one-click checkout flows in super-apps and routing loyalty rewards through wallet ecosystems. Fintech entrants introduced buy-now-pay-later modules that further encouraged higher basket sizes. This behavioral pivot drives sustained transaction volume gains for the Oman e-commerce market, especially in fashion, beauty, and food delivery.

Growing Cross-Border Shopping from China and GCC Reshapes Market Dynamics

Chinese platforms like AliExpress, Shein, and Temu posted double-digit parcel growth into Oman by leveraging aggressive price positioning and inventory breadth. Consumers accustomed to limited local variety embraced affordable electronics and apparel, pressuring domestic sellers to compete on delivery speed and post-sale service. GCC marketplaces Noon and Namshi capitalized on shorter shipping distances and Arabic interfaces to retain regional loyalty, while expanding private-label assortments. Courier alliances with Asyad Express lowered cross-border lead times, and customs digitization reduced clearance to under 24 hours for compliant parcels. Increased import traffic prompted investment in bonded warehousing near Sohar and Salalah free-zones, which now anchor a thriving re-export corridor.

Limited Consumer-Protection Enforcement Online Creates Trust Deficits

The Public Authority for Consumer Protection’s traditional retail frameworks struggled to resolve cross-border e-commerce disputes, leaving buyers with limited recourse against counterfeit goods or delivery failures.^{[2]Public Authority for Consumer Protection, “Consumer Complaints Portal,” cpa.gov.om} Complaint volumes rose as online sales expanded, but jurisdictional overlaps and resource constraints slowed resolution, persuading risk-averse shoppers to prefer cash-on-delivery or local retailers. The authority launched an online complaint portal, yet enforcement reach remains restricted beyond borders. Until bilateral redress mechanisms mature, fragmented oversight will temper near-term velocity in the Oman e-commerce market.

High Last-Mile Costs in Interior Governorates Limit Market Penetration

Delivery routes into Al Dakhiliyah and Al Sharqiyah can exceed 250 kilometers, inflating fuel and vehicle-maintenance expenses that couriers pass through to consumers. Logistics firms mitigate costs via minimum order thresholds or extended delivery windows, but service quality lags coastal benchmarks. Elevated pricing deters frequent purchasing and sustains an urban-rural digital divide. Government infrastructure upgrades and potential rural subsidies are under review, yet relief is unlikely before 2027. In the interim, growth from sparsely populated regions will underperform broader Oman e-commerce market averages.

Segment Analysis

By Business Model: B2B Digitalization Accelerates Despite B2C Dominance

The B2C segment held 71.68% Oman e-commerce market share in 2024, buoyed by mature online retail and on-demand food services. However, B2B platforms are forecast to post a 14.56% CAGR to 2030, outpacing consumer channels as enterprises digitize procurement workflows. Government e-tender modernization and SME cost-reduction mandates drive migration toward electronic catalogs and automated invoicing. Tradeling’s localized marketplace and credit-line solutions illustrate new value propositions tailored to Omani wholesalers and micro-retailers.^{[3]LuLu Group International, “LuLu opens outlet in Oman,” lulugroupinternational.com}

B2C growth remains robust in Muscat and Al Batinah, where dense populations support same-day delivery. Yet as B2B marketplaces aggregate higher-value orders, investors increasingly prioritize enterprise-facing ventures. Fulfillment providers are pivoting to palletized, bulk-order logistics, signaling an ecosystem shift toward hybrid models that marry consumer and corporate demand within shared infrastructure. This convergence should further expand the Oman e-commerce market through higher utilization rates and improved economies of scale.

By Payment Mode for B2C E-Commerce: Mobile Wallets Gain Ground Against Card Dominance

Cards commanded 44.57% of 2024 transaction value, retaining the largest slice of Oman e-commerce market size. Nevertheless, mobile wallets and QR solutions are advancing at a 14.98% CAGR on the back of widespread fintech promotions and youth adoption. Integration of card-on-file vaults within wallets ensures continuity for issuers while capturing convenience-oriented users.

Cash-on-delivery’s share is ebbing as merchants incentivize prepaid orders through fee waivers and loyalty credits. The Central Bank’s clamping down on interchange fees lowers PSP overheads, making digital acceptance profitable even for micro-sellers. Sustained wallet growth will dilute card predominance by the close of the decade, aligning payment patterns with wider GCC benchmarks and supporting frictionless expansion of the Oman e-commerce market.

By Product Category for B2C E-Commerce: Grocery Segment Disrupts Fashion Leadership

Fashion and apparel retained 29.47% revenue share in 2024, powered by social-commerce campaigns and influencer-curated drops. Yet online grocery orders are rising at a 14.78% CAGR as quick-commerce startups promise 30-minute delivery of fresh items. Improved cold-chain capacity and micro-fulfillment hubs in Muscat and Salalah underpin reliability.

Electronics sales maintain healthy momentum on cyclical smartphone upgrades, whereas beauty and personal care capitalize on video-tutorial marketing. Talabat’s InstaShop acquisition demonstrates strategic pivot toward high-frequency grocery baskets that boost retention and cross-sell opportunities. As households integrate routine pantry restocking into digital habits, grocery volumes are expected to challenge fashion for the top spot in the Oman e-commerce market by 2030.

Note: Segment shares of all individual segments available upon report purchase

By Device Type for B2C E-Commerce: Smartphone Supremacy Continues Expanding

Smartphones represented 82.48% of purchases in 2024 and are projected to grow at 14.12% CAGR, underscoring the mobile-first character of the Oman e-commerce market. Enhanced camera quality, Arabic UI, and biometric payment authentication reinforce handheld convenience. Desktop remains indispensable for complex or B2B transactions, yet its share will gradually recede as responsive design and voice search enrich app experiences.

Tablet and smart-TV commerce hold niche roles, mostly for entertainment bundles. Retailers have reacted by adopting mobile-app-only discount models and deep-link social-selling. Advanced in-app localization, including Omani dialect chatbots, is strengthening engagement and time-on-site, intensifying competition among top marketplace apps.

Geography Analysis

Muscat governorate led 2024 transaction value, supported by robust fiber connectivity and dense retail footprints that enable same-day fulfillment. Large-scale investment in cloud kitchens and dark stores around Ruwi and Seeb further optimized delivery speed, encouraging consumers to shift regular shopping online.

Al Batinah ranked second, riding industrial growth around Sohar Port where logistics clusters cut inbound freight time. Government initiatives to widen highway corridors between Sohar and Buraimi are expected to compress delivery windows and lift the Oman e-commerce market performance in northwest corridors.

Dhofar, anchored by Salalah, exhibited mid-teen percentage growth as tourism inflows and agricultural exports stimulated demand for cross-border and regional marketplaces. The Salalah Free-Zone’s bonded storage incentives attracted 3PL expansions, linking seasonal monsoon agriculture to GCC grocery platforms.

Interior governorates such as Al Dakhiliyah and Al Sharqiyah still confront elevated last-mile costs and less reliable telecom service, yet rising smartphone ownership signals latent online demand. As road upgrades funded under Vision 2040 gain completion, courier routing efficiencies will narrow the urban-rural cost gap, releasing new addressable volumes.

The rest of Oman-encompassing smaller and remote governorates-remains lightly penetrated, but drone delivery pilots in Duqm and Al Wusta have shown promising lead-time reductions. Consumers in these zones often use parcel-locker pickup in Muscat, indicating appetite that may be converted once cost-effective delivery innovations scale.