Oman, e-commerce and logistics
Internet sales are booming in the Middle East and Oman is one country that is seeing significant growth rate.
But where do you stand with shipping your products to Oman and what do you need to know to ensure cost effective sales?
Why Oman?
Oman has an oil dependent economy, accounting for over 26% of the country’s gross domestic product, but the government is seeking to reduce this and diversify the economy through the private sector.
Oman has prioritised attracting Foreign Direct Investment (FDI) as a way of boosting local job creation. In January 2022, Oman signed a Sovereign Investment Partnership with the United Kingdom, to facilitate joint investment. The Omani government is also making big efforts to promote a ‘digital society’ and ‘e-government’.
All of this, coupled with the high number of internet users (95.2% penetration rate at the start of 2022 1), signifies an openness to international trade and a strong potential for e-commerce growth.
- 4.2 m
- Active internet users
- 5.72 m
- Mobile connections
- 4.1 m
- Social media users
The e-commerce landscape
In June 2021 market intelligence firm Statista reported that Oman e-commerce market revenues amounted to $657.1 million in 2020 and would grow by 5.7% to reach $867.7 million by 2025.
According to the same report, the largest segment is fashion with a market volume of $212.1 million in 2020, followed by the electronics and media sector. 2
Omani e-shoppers are primarily buying clothing, airline tickets, beauty care products, and hotel services from international retailers 3. China is currently the first port of call for ordering furnishings, machinery and construction materials.
Opportunities
In order to boost e-commerce and provide safe and secure e-commerce transactions, the Central Bank of Oman recently launched a national debit card payment gateway infrastructure for e-commerce transactions. 4
There is an increasing trend among businesses especially among Omani owned SMEs and entrepreneurs to promote and sell their merchandise through social media.
Logistics
When it comes to shipping to Oman it’s good to know where you stand on tariffs, taxes and any trade barriers that might raise costs, cause delays or even prevent your delivery from reaching its destination. You can check for any issues that may impact your business when exporting here https://www.check-international-trade-barriers.service.gov.uk/barriers/?resolved=0&location=om
You can also view duties, rules, restrictions and the documents you might need here https://www.check-duties-customs-exporting-goods.service.gov.uk/searchproduct?d=OM.
For a complete delivery support service or more personalised advice, contact us here at SAMOS
The essentials
| Transit Times | 5-6 working days |
| Maximum Dimensions | 120cm x 60cm x 60cm |
| Maximum Weight | 30kg |
| Maximum Content Value | N/A |
| Low-Value Limit | 259 USD |
| Duty | Variable based on product; Applicable on orders over 259 USD |
Good to know
The UK and Oman have signed a double taxation agreement, meaning the same income is not taxed twice. The tax regime is generally seen as favourable, with no personal income tax and one of the lowest rates of corporate income tax globally (15%).
What our experts say:
“Oman has strong UK trade and diplomatic links, so there’s no reason why you shouldn’t consider shipping there if this market is right for you. Good shipping rates and repeat customer loyalty will make it even more rewarding.”
Simon Perkins, Commercial Director, SAMOS.