MUSCAT: Oman’s e-commerce market is projected to balloon in value to $1.24 billion in 2029 from around $660 million presently, per growth targets envisioned under the National Programme for the Digital Economy.
According to a report compiled by Oxford Business Group, a global publishing, research and consultancy firm, the sector is anticipated to expand at a compound annual growth rate of 13.54% over the next five years through to 2029. Fuelling this growth, it said, is a new government-led Executive Programme for E-Commerce supported by a number of ministries, public and private sector stakeholders.
“While still in its early stages, the e-commerce market in Oman represents a significant opportunity,” said OBG in its report titled ‘Oman’s Digital Future - Paradigm Shift Under Way Across Government, Business and Society’. “Despite the country boasting one of the highest levels of smartphone usage in the Middle East, only 8% of the population currently engages in mobile shopping. Consequently, e-commerce represents just 1% of total retail sales. This is primarily due to consumers’ preference for in-person shopping. However, the government-led EP for E-commerce, bolstered by support from government-related corporations such as Asyad Group, holds promise for the future growth of this market.”
Significantly, a number of legislative initiatives and enablers introduced by various government stakeholders are helping underpin the growth of e-commerce in Oman, according to the report. It includes regulatory frameworks, streamlining of registration methodologies, and the rollout of support infrastructure in the form of private data centres and technical platforms.
In addition, several pivotal initiatives are planned for implementation over the next three years to help accelerate the adoption of e-commerce, says OBG. Key among them are proposals for the implementation of electronic know-your-customer (E-KYC), electronic payment transaction fees, and the launch of dedicated e-commerce parks and logistics centres,
A number of government ministries and institutions are collaborating to drive the growth of e-commerce in Oman. The Ministry of Commerce, Industry and Investment Promotion has implemented legislation requiring e-commerce players to be registered.
Likewise, the Ministry of Transport, Communications and Information Technology is collaborating with Oman Investment Authority (OIA) in formulating a roadmap for the development of support infrastructure, as well as enhance the IT competencies of Omani cadres.
The Central Bank of Oman, for its part, is enabling the rollout of electronic payment platforms, eKYC procedures, and cost-competitive electronic payment transaction fees.
Similarly, the ROP Customs authorities are focused on speeding up clearances, logistics and cross-border cargo flows, while the SME Development Authority is supporting the growth of 150 Omani startups that plan to operate in this field.
Commenting on the outlook for this sector, Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion, added: “Thanks to its strategic location, Oman has the potential to become a regional e-commerce centre. We have established a comprehensive regulatory framework to ensure transparency and minimise fraud. Both Omani and foreign-owned online businesses need to obtain commercial licences, available via the Oman Business Platform. These measures aim to tackle potential commercial challenges. Given the growing consumer interest in e-commerce and the wide range of goods produced in Oman, the opportunities for entrepreneurs catering to both the domestic and export markets are substantial.”
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