E-commerce in Oman valued at $6.57bln by 2030

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MUSCAT: E-commerce is projected to play a crucial role in reshaping Oman's employment and business landscape. Moawiya al Rawas, the CEO and co-founder of iON LLC, shared his vision for unlocking employment potential through e-commerce at the Oman Jobs Fair held at the Oman Convention and Exhibition Centre. By highlighting key statistics and projections, Al Rawas showcased the significant opportunities for job creation and economic growth in Oman's e-commerce sector.

Al Rawas began by outlining the current employment landscape in Oman. He pointed out that the private sector employs 69.5% of the entire workforce in Oman, compared to 16.2% in the public sector and 14.3% in other sectors. He also noted that 84% of the public sector workforce consists of Omani employees, amounting to 346,460 individuals, while 14% of Omanis are employed in the private sector, with 218,000 employees. This distribution highlights the need for more Omanis to engage in private sector opportunities, particularly in emerging fields like e-commerce.

According to him, the e-commerce market in Oman is estimated to reach $2.64 billion by 2025 and $6.57 billion by 2025, based on regional growth trends and local government reports. This dramatic growth not only presents a substantial opportunity for economic development but also for job creation, with an estimated 200,000 potential jobs in the sector by 2028.

Moawiya al Rawas, the CEO and co-founder of iON LLC.

Al Rawas emphasised the importance of acquiring e-commerce skills to succeed in this rapidly evolving market. He outlined ten essential job roles for e-commerce businesses, including E-commerce Manager, Digital Marketing Specialist, and Customer Service Representative. These skills are crucial for small and medium-sized enterprises (SMEs) to thrive in the competitive e-commerce landscape and maximise their employment potential.

To illustrate the financial viability of e-commerce, Al Rawas discussed the optimal yearly financials for an e-commerce SME. He provided insights into the average transaction value, annual revenue, and expected profit margins based on different levels of transactions. For instance, an e-commerce business with 25,000 annual transactions, averaging 2,083 transactions per month, and an average value of RO 30 per transaction, could yield an annual profit of RO 300,000. This example showcases the significant revenue potential in the sector.

Al Rawas also highlighted the total market employment opportunity in the e-commerce sector. With 135,064 SMEs registered by the end of 2023, and 31% of these categorised as Retail, approximately 42,000 businesses have the potential to transition online. By projecting that 50% of these retail SMEs could become successful online within the next five years, Al Rawas estimated a total employment opportunity of 200,000 jobs in the e-commerce sector.

By leveraging e-commerce technology, platforms, and social commerce solutions, businesses in Oman have the potential to drive employment growth and economic prosperity. Al Rawas's vision for a thriving e-commerce ecosystem in Oman aligns with the country's goals of diversifying its economy and creating sustainable job opportunities for its citizens.