Page 48 - SAMENA Trends - September 2021

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Oman’s e-Commerce Market Seen to Grow By 20% Annually

With a very high smartphone user hotel services. There is an increasing trend
penetration and a shift in online shopping among businesses, especially among
triggered by the COVID-19 pandemic, Omani-owned SMEs and entrepreneurs,
Oman’s e-commerce market is expected to promote and sell their merchandise
to record more than 20 percent average through social media. The biggest hurdle
annual growth between 2021 and 2026. in the e-commerce market is the changing
The sultanate’s e-commerce market – mindset of people. Customers want to buy
valued at US$2.19bn in 2020 – is expected products directly from shops,’ the report
to reach US$6.52bn by 2026, according said. It said that the Internet penetration
to an industry report released by market rate in Oman is estimated to be more than
intelligence and advisory firm Mordor 75 per cent of total population, which will
Intelligence. The e-commerce market drive e-commerce growth in coming years.
in Oman, which currently accounts for a ‘The sultanate is coming very close to 100
very small portion of total retail sales, has per cent smartphone user penetration.
ample opportunities to grow in the future, The country has a high mobile broadband
the report ‘E-commerce Market in Oman penetration and its 4G coverage also
(2021-2026)’ said. ‘Despite Oman having reaches a high level. In recent years,
one of the highest smartphone usage in Oman has made great efforts to build up
the Middle Eastern region, only 8 per cent its IT infrastructure both at governmental
of the population did mobile shopping. and private levels. Oman’s mobile phone
Most of the items purchased online in subscriber base is increasing with a
Oman are groceries and music. However, penetration rate of more than 150 per cent,’ to this untapped market. But overall
more than one-fourth of the population the report added. Growing adoption of 4G economic growth of the country is
of Oman still purchases products from and 5G technology, Mordor Intelligence’s expected to drive the e-commerce market,’
foreign websites,’ the report said. Currently, report said, is also driving the growth of the report said. The report acknowledged
there is limited e-commerce activity in the e-commerce market. However, spending on that different government initiatives and
private sector in the sultanate, whereas telecom services and devices is decreasing regulations are supporting the growth of
the government is actively promoting as a result of large-scale job losses due Oman’s e-commerce market. ‘The Ministry
‘digital society’ and e-government to the ongoing COVID-19 pandemic. ‘This of Commerce, Industry and Investment
services through the Information decreasing trend of consumer spending Promotion is continuously influencing
Technology Authority (ITA), it noted. can create a considerable barrier for this people to adopt e-commerce for shopping,
‘Omani e-shoppers mostly buy clothing, market. Major vendors in this market are import, and other activities,’ it added.
airline tickets, beauty care products, and also innovating their services to cater

Pakistan Government and Etisalat Agree to Resolve Long-Standing Dispute

The Pakistani government and UAE-based USD1.8 billion up front with the rest to be from the remaining USD800 million owed
Etisalat Group have agreed to resolve paid in instalments over a five-year period. by Etisalat. However, the two parties have
a long-standing dispute regarding the Etisalat refused to pay the outstanding failed to reach an agreement on the fair
latter’s acquisition of a minority stake funds on the basis that the government valuation of the properties. Under the
and management control of Pakistan had not adhered to part of the privatization finance ministry’s proposal – to which
Telecommunication Company Limited agreement, under which more than 3,000 Etisalat’s CEO has reportedly acceded – the
(PTCL). According to a statement from the properties would be transferred to PTCL. parties would establish a mechanism for
Ministry of Finance, Etisalat CEO Hatem By 2015 the government had completed the the assessment of the disputed properties
Dowidar agreed to a proposal regarding transfer of the majority of these properties, by unnamed ‘internationally renowned
the valuation of certain properties that with the remaining transfers – around evaluation companies. According to the
were due to be transferred to PTCL under 30 – deemed impossible due to legal statement from the government, the
the 2006 privatization agreement. As impediments. In some cases, for example, Etisalat official stated that evaluation of
noted by TeleGeography’s GlobalComms the properties were held by private parties the properties could be completed in ‘a
Database, Etisalat purchased its 26% and should not have been included in the couple of months.
stake in PTCL and agreed to pay USD2.6 initial agreement. As such, the value of the
billion for the company, including around outstanding properties will be deducted

48 SEPTEMBER 2021