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 delivering your parcels o Oman from the UK and what do you need to know to ensure cost effective sales?
Why Oman?
Oman has an oil dependent economy, accounting for over 30% of the country’s gross domestic product 1, 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 signifies an openness to international trade and a strong potential for e-commerce growth.
- US$ 2.03bn
- E-commerce revenue
- 31.7%
- User penetration rate
The e-commerce landscape
The e-commerce market in Oman is estimated at $575 million in June 2023, and is expected to reach $1.1 billion by 2028, growing at 13.5 percent during the forecast period according to Modor Intelligence Research agency.
The high number of Internet users in Oman, coupled with the Omani government’s promotion of a ‘digital society’ and “e-government,” present many opportunities for e- commerce. According to the Digital 2022: Oman report, Oman has approximately 5.02 million active Internet users, 5.87 million mobile connections and 4.39 million social media users 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
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.
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.
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.