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The Oman e-commerce market was valued at USD 2.19 billion in 2020, and it is expected to reach USD 6.52 billion by 2026, registering a CAGR of more than 20% during the forecast period (2021-2026).
According to the World Bank, Oman's economy was expected to contract by 3.5% in 2020. The primary reasons behind this contract were the lower oil prices and the spread of COVID-19 across the world.
Oman has a population of more than 5.1 million people, and the internet penetration rate is estimated to be more than 75%. The e-commerce market in Oman is still a nascent market and has ample opportunities to grow in the future. Despite Oman having one of the highest smartphone usage in the Middle Eastern region, only 8% of the population did mobile shopping. Most of the items purchased online in Oman are groceries and music. However, more than 1/4th of the population of Oman still purchases products from foreign websites. The e-commerce market in Oman accounts for only 1% of the total retail sales. Currently, there is limited e-commerce activity in the private sector in the country, whereas the government is actively promoting “digital society” and “e-government” services through the Information Technology Authority (ITA). Omani e-shoppers mostly buy clothing, airline tickets, beauty care products, and hotel services. When it comes to cross-border e-shopping, China remains the main country of origin for ordering furnishing, machinery, construction materials, etc. There is an increasing trend among businesses, especially among Omani-owned SMEs and entrepreneurs, to promote and sell their merchandise through social media. The biggest hurdle in the e-commerce market is the changing mindset of people. Customers want to buy products directly from shops.
Scope of the Report
E-commerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet and the transfer of money and data to execute these transactions. The report elucidates the situation of Oman and predicts the growth of its e-commerce Industry. The report talks about growth, market trends, progress, challenges, opportunities, technologies in use, growth forecast, major companies, upcoming companies and projects, etc., in the e-commerce sector of Oman. In addition to it, the report also talks about the future forecast for its current economic scenario, the effect of its current policy change on the economy, and reasons and implications on the growth of this sector. The Market Is Segmented By Product Type (Apparel and Footwear, Consumer Appliances and Electronics, Consumer Healthcare, Food and Beverages, Home Care and Home Furnishing, Pet Care, Toys, Games, and Baby Products, Sports and Outdoor and Other Products, and Accessories and Eyewear).
|Apparel and Footwear|
|Consumer Appliances and Electronics|
|Food and Beverages|
|Home Care and Home Furnishing|
|Toys, Games, and Baby Products|
|Sports and Outdoor and Other Products|
|Accessories and Eyewear|
Key Market Trends
Increasing Internet Penetration in the Oman Sultanate may Drive the Market
Oman has a population of more than 5.1 million people, and the internet penetration rate is estimated to be more than 75%. The Sultanate is coming very close to 100% smartphone use penetration; the country has high mobile broadband penetration, and its 4G coverage also reaches a high level. In recent years, Oman has made great efforts to build up its IT infrastructure both at governmental and private levels. Oman’s mobile phone subscriber base is increasing with a penetration rate of more than 150%. According to the National Centre for Statistics and Information (NCSI), Oman’s internet subscribers surged to 473,487 subscribers in 2019, which had increased by 11.4% from 2018. Moreover, the number of active mobile broadband subscribers rose to 4.739 million subscribers compared to 4.113 million subscribers in 2018. The growing adoption of 4G and 5G technology is also driving the growth of this market. For instance, the Oman Telecommunication company planned to set up 2226 5G sites by 2024, which will increase the internet consumption rate for this country. However, spending on telecom services and devices is decreasing due to the large-scale job losses due to the ongoing COVID-19 pandemic. This decreasing trend of consumer spending can create a considerable barrier for this market. Major vendors in this market are also innovating their services to cater to this untapped market.
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Increased Consumer Spending is Expected to Fuel this Market
The overall economic growth of this country is expected to drive the e-commerce market. Rapid urbanization and industrialization are increasing the consumer spending power for this country. According to the World Bank data, consumer spending in this country increased by 0.02% from 2018. Moreover, different government initiatives and regulations are supporting the growth of this market. The Ministry of Commerce and Industry is continuously influencing people to adopt e-commerce for shopping, import, and other activities. For instance, MOCI recently launched the 'Shop from Your Home' initiative to prevent the transmission of the COVID-19 virus in the country. Moreover, the government is also encouraging home business owners and small and medium enterprises to promote their products and use modern methods and technologies to market different products internationally. Some new players are also entering this market to cater to the market opportunities from this region. For instance, in 2020, Omarto.com was launched to tap into the burgeoning e-commerce market in Oman. This addition will decrease the switching costs of Oman's customers and increase their bargaining power.
The report covers the major international players operating in the Oman e-commerce market. In terms of market share, some of the major players currently dominate the market. However, with technological advancements, data analytics, AI, web design, creative programming, digital marketing, cataloging and app development, and product innovations, major companies are gaining a competitive advantage and increasing their market presence by securing new contracts and tapping into new markets.
Developments in 2020
- In November 2020, Infibeam Avenues, the BSE listed financial technology solutions provider, entered Oman to offer payment processing services and tied up with Bank Muscat.
The company is set to offer next-gen payment processing services under the flagship brand CCAvenue to merchants in the e-commerce sector in Oman.
- In January 2020, Omarto.com, the homegrown online shopping website, was launched to tap into the burgeoning e-commerce market in Oman. The latest e-commerce player is promoted by United Media Services (UMS) LLC, part of Muscat Overseas Group, one of the leading and diversified business groups in the Sultanate of Oman.
- In January 2020, Ooredoo launched a new set of standards for its pay plus mobile wallet, which helps customers enable a wide range of transactions via a single app on a mobile device, including payments, deposits, and transfers. The company also started its services in 1500 locations across the country, such as Oman Oil petrol stations, McDonald's, Caribou cafe, Nesto, etc.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain/Supply Chain Analysis
4.5 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Apparel and Footwear
5.1.2 Consumer Appliances and Electronics
5.1.3 Consumer Healthcare
5.1.4 Food and Beverages
5.1.5 Home Care and Home Furnishing
5.1.6 Pet Care
5.1.7 Toys, Games, and Baby Products
5.1.8 Sports and Outdoor and Other Products
5.1.9 Accessories and Eyewear
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.5 Royal Oman Police
6.1.6 Bayan Customs
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Oman E-commerce Market market is studied from 2017 - 2026.
What is the growth rate of Oman E-commerce Market?
The Oman E-commerce Market is growing at a CAGR of >20% over the next 5 years.
Who are the key players in Oman E-commerce Market?
Amazon, ebay, Aliexpress, Bayan Customs, Royal Oman Police are the major companies operating in Oman E-commerce Market.