E-Commerce in Oman Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Oman E-commerce Market Analysis

The Oman E-commerce Market size is estimated at USD 0.75 billion in 2025, and is expected to reach USD 1.41 billion by 2030, at a CAGR of 13.54% during the forecast period (2025-2030).

The Omani e-commerce industry is undergoing significant digital transformation, driven by robust technological infrastructure development and changing consumer preferences. According to recent data, Oman's population exceeds 4.61 million with an internet penetration rate surpassing 80%, creating a strong foundation for digital commerce growth. The government's Vision 2040, implemented through the National Digital Economy Program, focuses on three crucial pillars: digital government, digitalizing businesses, and digital society. This comprehensive approach has led to the implementation of various executive programs, including government digital transformation, artificial intelligence integration, and advanced technologies adoption. The Information Technology Authority (ITA) reported that approximately 4.44 million internet users were registered in Oman by January 2023, demonstrating the market's substantial digital reach.

Cross-border e-commerce has emerged as a significant trend in Oman's digital marketplace, with China maintaining its position as the primary destination for online shopping, particularly for furniture, machinery, and construction materials. The market has witnessed a notable shift in consumer purchasing patterns, with Omani online shoppers predominantly focusing on clothing, airline tickets, beauty products, and hotel services. The retail landscape is evolving rapidly, as evidenced by the February 2023 opening of The Sultan Center's rebranded 'Sultan Market' supermarket in Amerat Al Nahda, marking their eighth location in Muscat and demonstrating the growing integration of traditional retail with digital commerce capabilities.

The telecommunications infrastructure continues to strengthen, supporting the expansion of e-commerce capabilities across the nation. The Oman Telecommunications Company has announced plans to establish 2,226 5G sites by 2024, significantly enhancing internet connectivity and mobile commerce capabilities. This development is particularly significant as social media platforms increasingly become vital channels for product promotion and sales, especially among Omani-owned SMEs and entrepreneurs who leverage these platforms to reach their target audiences and conduct business transactions.

The market is experiencing a notable transformation in payment systems and digital infrastructure. According to the International Trade Administration report, the implementation of the national ePayment Gateway portal has facilitated various online transactions, including e-government services, e-commerce, eTendering, and online donations. The government's commitment to digitalization is further emphasized by their target to achieve 80% complete digitalization of government services by 2025, creating a robust ecosystem for e-commerce growth. This digital transformation extends beyond government services, influencing private sector adoption of digital commerce solutions and encouraging traditional retailers to develop omnichannel strategies to meet evolving consumer expectations.

Oman E-commerce Market Trends

Increase in Internet Penetration and Smartphone Usage

The rapid expansion of internet connectivity and smartphone adoption in Oman has become a fundamental driver for e-commerce growth. According to recent data, Oman's internet penetration rate has surpassed 80%, while mobile phone subscriptions have reached an impressive penetration rate exceeding 150%, indicating multiple device ownership per user. This widespread connectivity is further evidenced by the significant increase in mobile broadband subscriptions, which reached 6 million by the end of 2023, marking a 5.5% growth from the previous year. Additionally, fixed internet subscriptions grew to 563.7 thousand by the end of 2023, representing a 4.6% increase from the previous year.

The robust digital infrastructure is complemented by the continuous advancement in mobile technology and network capabilities. The Oman Telecommunications Company's ambitious plan to establish 2,226 5G sites by 2024 demonstrates the country's commitment to enhancing digital connectivity. This expansion of high-speed internet infrastructure is particularly significant as international internet capacity subscriptions reached 2.6 million by the end of 2023, showing a 5.3% increase from 2022. The combination of increased internet penetration and smartphone usage has created an environment where consumers can easily access online business platforms in Oman, driving the digital transformation of retail in Oman.

Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last Mile Delivery and Improve Distribution Centers

The Omani government's proactive approach in promoting e-commerce through various initiatives and infrastructure developments has significantly contributed to market growth. A notable example is the Digital Transformation program, which aims to achieve 80% digitalization of government services by 2025, as announced by the Digital Transformation Empowerment Leader at the National Program for Digital Economy. This initiative, coupled with the implementation of the e-Government system, has created a robust framework for electronic payments and internet transactions, making online shopping more accessible and secure for consumers.

The government's commitment to strengthening the e-commerce industry ecosystem is further demonstrated through substantial investments in logistics and distribution infrastructure. The Oman Logistical Center's significant investment of over $2 billion in logistical infrastructure, including cold storage facilities, announced in 2023, represents a major step toward improving last-mile delivery capabilities. This investment is complemented by the establishment of the national ePayment Gateway portal, which facilitates secure online transactions for e-government services, e-commerce, and other digital payments. These initiatives, combined with the implementation of the Electronic Transactions Law, have created a comprehensive framework that supports the growth of online business platforms in Oman while ensuring consumer protection and transaction security.

Segment Analysis: By Application

Consumer Electronics Segment in Oman E-commerce Market

The consumer electronics segment dominates the Oman e-commerce market, commanding approximately 39% market share in 2024. This significant market position is driven by the increasing adoption of smartphones, laptops, and other electronic devices among Oman's tech-savvy population. The segment's strength is further reinforced by the availability of diverse product offerings, including computing devices, smartphones, TV peripherals, and multimedia equipment. Major e-commerce platforms like Amazon and local retailers have expanded their electronic product portfolios, offering competitive prices and exclusive deals to attract customers. The segment's growth is also supported by the rising digital literacy rates and the increasing preference for online shopping platforms when purchasing electronic goods. This aligns with the Oman electronics market trends, where consumer electronics remain top-selling products in Oman.

Food Segment in Oman E-commerce Market

The food segment has emerged as the fastest-growing category in Oman's e-commerce market, with a projected growth rate of approximately 14% from 2024 to 2029. This remarkable growth is driven by the increasing consumer preference for online grocery shopping and food delivery services. The segment's expansion is supported by improvements in last-mile delivery infrastructure and the integration of advanced cold chain logistics solutions. E-commerce platforms have enhanced their food delivery capabilities by partnering with local restaurants, supermarkets, and specialty food retailers. The growth is further accelerated by the rising demand for fresh produce, ready-to-eat meals, and specialty food items through online channels, making it one of the trending products in Oman.

Remaining Segments in By Application

The other segments in Oman's e-commerce market include fashion and apparel, beauty and personal care, furniture and home, beverages, and various other categories. The fashion and apparel segment has established itself as a significant contributor, offering a wide range of clothing, footwear, and accessories through online platforms. The beauty and personal care segment continues to grow as consumers increasingly purchase cosmetics and personal care products online. The furniture and home segment caters to the growing demand for home décor and furnishing products, while the beverage segment serves the online market for both hot and cold beverages. These segments collectively contribute to the diverse online market in Oman ecosystem, each addressing specific consumer needs and preferences.