MUSCAT: The digital transformation journey is one that never stops evolving, and with it comes the trends of how we buy and sell online. E-commerce, a dynamic and ever-evolving sector, has seen significant growth globally, and Oman is no exception. To delve deeper into this subject, Oman FM, hosted by Ahmed al Busaidi, spoke with Moawiya al Rawas, the CEO and founding partner of iON LLC.
"E-commerce is any transaction between two parties where goods are exchanged over the internet, including information," Al Rawas explained. The evolution of e-commerce began with the banking industry going online, setting the stage for secure and regulated transactions. This digital shift involved numerous industries such as shipping and technology, contributing to the robust ecosystem we see today.
Oman's e-commerce story is intricately linked to its cultural and technological landscape. Since the 1970s, Omanis have embraced technology rapidly. Interestingly, many skipped the laptop phase and moved directly from PCs to mobile phones, significantly influencing the e-commerce landscape. "This shift made social media a primary driver of e-commerce, often referred to as social commerce," Al Rawas noted. The prevalence of mobile phones facilitated transactions through social platforms, which is unique to Oman.
The government has laid a strong infrastructure foundation, investing in central banking, commerce, transportation, and technology. These investments are gradually paying off by creating an environment conducive to thriving markets. "E-commerce can significantly contribute to job creation and attract foreign direct investments," Al Rawas emphasised.
SMEs, which constitute a major part of Oman’s economy, can transition to e-commerce, offering substantial employment opportunities. If 20% of the over 100,000 registered SMEs adopt e-commerce, we could see around 150,000 to 200,000 jobs created, encompassing roles like graphic designers, photographers, accountants, and marketers.
Despite the opportunities, challenges remain. Many businesses thrive on social media but aren't officially recorded as e-commerce. Social platforms simplify communication and transactions, but scaling up requires formal structures like registration, accounting, and logistics. "Users in Oman spend significantly online, but much of it goes to international platforms like Apple, Netflix, and Amazon," Al Rawas pointed out. The goal at iON is to equip Omani entrepreneurs with the capabilities to compete on these levels.
iON operates as a software service provider focusing on e-commerce. Al Rawas’ background in banking and e-payments, combined with his co-founder Marcin’s experience in infrastructure, led them to address the e-commerce needs in Oman. iON offers a comprehensive solution for SMEs, including website creation, inventory management, CRM, accounting, and social media integration. They also partner with Seat Express for delivery, ensuring products can reach any part of the world efficiently. Their packages start at 11 riyals, with new offerings to be announced at the upcoming Oman job fair.
"The idea was born out of a synergy between myself and my partners, each bringing unique skills to the table," Al Rawas explained. They aimed to create a business that could thrive in Oman while leveraging their expertise in e-commerce and payments. The need to foster a thriving entrepreneurial ecosystem in Oman further motivated them to develop iON.
The future of e-commerce in Oman is promising. With ongoing investments in infrastructure and a young, tech-savvy population, the potential for growth is immense. Empowering entrepreneurs and providing them with the tools to succeed in the digital marketplace is crucial. As the country moves forward, e-commerce is expected to play a crucial role in diversifying the economy and creating sustainable job opportunities.
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