Doing Business in Oman: Market Entry, GTM Strategy & Growth Potential

The population of Oman is 5,671,459, and is growing at the rate of 2.82%. The GDP per capita, which represents the potential spending power of the people, is $45,698, measured on a purchasing power parity (PPP) basis to allow comparison with other countries.

79.55% of Oman’s population lives in urban areas. 71.59% of the population is of working age (15-59). 95.25% of the population has internet access and 97% has 5G mobile coverage. These factors are important for digital-first businesses to keep in mind.

The Accuracast International Growth Index ranks Oman #42 overall for market attractiveness. The country’s rank changed -2 places, representing a fall from last year’s position.

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Digital Market Maturity in Oman

The digital search demand score for Oman is 38.51.

Oman has 5.28 million internet users and 95.3% internet penetration, creating a highly connected market. Search offers strong potential for capturing consumers already showing purchase intent, particularly across retail, travel, financial services and lifestyle categories. Both Arabic and English should be considered, allowing brands to reach local consumers alongside Oman’s significant expatriate population.

Go-To-Market Strategy Considerations for Oman

The purchasing power score for Oman is 45.65, and the country scores 86.28 for digital readiness.

High internet penetration sits alongside GDP per capita of around $19,947, creating a relatively attractive digital consumer market. However, purchasing power varies considerably between different consumer groups. Brands should therefore avoid relying on a single broad audience and instead use segmentation to align product positioning and pricing with different levels of spending power.

Financial & payment infrastructure

In terms of financial infrastructure, Oman scores 68.99.

Digital payments are growing rapidly, with transactions through electronic payment gateways reaching OMR 3.2 billion in 2025, representing a 76.3% increase year on year. Local mobile payment solutions such as Thawani are becoming increasingly relevant alongside cards and bank transfers. Supporting familiar digital payment methods can therefore help reduce friction and meet increasingly mobile-first consumer expectations.

Regulatory & business setup friction

From a business expansion point of view, Oman scores 57.26 for regulatory complexity and legal restrictions. This is reverse-scored, meaning the higher the score, the easier it is to navigate local regulation.

Businesses entering Oman need to consider local licensing, ecommerce, tax and consumer protection requirements. VAT is relatively low at 5%, although businesses must register once taxable revenue reaches OMR 38,500. Requirements can vary depending on the sector, so understanding the relevant licensing and ownership rules before launch is important.

The score of 20.84 indicates the costs and friction associated with setting up a business presence in Oman.

Market entry can involve more administrative friction than entering an EU market, particularly around licensing, company registration and local compliance. This does not prevent foreign businesses from entering the market, but it can increase setup time and cost. For businesses still validating demand, cross-border ecommerce or working with a local partner can provide a lower-risk starting point.

Oman market attractiveness change

Compared to last year, the overall International Growth Index score for Oman has changed 1.5 points, causing the country to go -2 places from 2025, dropping to rank #42 in 2026.

Oman’s strongest advantage is the combination of very high internet penetration and rapidly developing digital infrastructure. With 95.3% of the population online, the audience is already highly accessible through digital channels. However, ecommerce adoption has historically lagged behind internet penetration, meaning there is still significant opportunity to convert online audiences into regular digital customers.

Most Popular Social Media Platforms in Oman:

1. WhatsApp
2. Facebook
3. Instagram
4. YouTube
5. TikTok
6. Snapchat
7. LinkedIn
8. X
9. imo
10. BOTIM

WhatsApp voice and video calling is restricted in Oman by the Telecommunications Regulatory Authority. Visitors tend to use VPNs to bypass these restrictions. People from the UAE or with contacts there use imo or BOTIM for communication.

The official national language is Arabic. English is spoken by 30-50% of the population, mainly expats, who make up about 45% of the population. Hindi, Urdu, Malayalam, Bengali and Tamil are spoken at home by migrant workers. Marketing teams can test the market in English, but should consider localising the website, social media and advertising content into Arabic to engage the native Omani audience effectively.

While English is widely understood, localising to Arabic is important for ultra-wealthy and older Omani nationals, as well as government and public-sector workers, and religious audiences. As with other GCC countries, Arabic has strong cultural resonance and is considered part of their national identity.

International Expansion Risks for Oman

While new market expansion can be exciting, it is important to also consider the risks when entering a market like Oman.

The main risks are market size, regulatory complexity and differences in purchasing power. High internet penetration should not be treated as evidence that all consumers have the same ecommerce behaviour or spending power. Brands should focus on mobile-first experiences, Arabic and English localisation, audience segmentation and clear pricing to improve relevance and conversion.

Compare Oman to other countries