Oman’s E-Commerce Sector Booms with Over 10,500 Licensed Businesses Amid Rising Digital Trade

Muscat — Oman’s e-commerce sector has experienced explosive growth, with more than 10,500 businesses licensed to operate online as of mid-July 2025, according to the Ministry of Commerce, Industry and Investment Promotion. The sector has grown at a compound annual rate of 191% between 2020 and 2025, largely driven by increased activity on social media platforms like Instagram, TikTok, and WhatsApp.

This surge reflects a growing preference for digital interaction, particularly among small and medium enterprises (SMEs) that now rely heavily on social media to market and sell products. The expansion aligns with global consumer behaviour trends and is supported by Oman’s first e-commerce regulatory framework, introduced in September 2023 under Ministerial Decision No 499/2023. The regulations cover online businesses operating through websites and social media, with popular categories including perfumes, cosmetics, and ready-made garments.

Despite its promising outlook, the sector faces challenges such as payment fraud, fake receipts, last-minute order cancellations, and concerns over return policies, product quality, and data protection. Dr. Nasser bin Hamid al Musalhi, a digital security expert at Mazoon College, stressed the need for stronger cybersecurity measures, cautioning consumers against unverified platforms and unsafe payment practices.

Online entrepreneur Malik bin Ishaq al Qarni attributed his success to social media, which allows broad reach, instant product showcasing, direct customer engagement, and brand building at low cost. However, he acknowledged hurdles including customer hesitancy to prepay due to scam fears and order cancellations that cause financial setbacks.

Oman’s National E-Commerce Plan (2022–2027) aims to establish the country as a regional hub by fostering a robust digital trade ecosystem. The government is enhancing regulatory oversight and promoting safer online transaction practices to support both sellers and consumers in this rapidly evolving market.