1. Executive Summary
The analysis indicates that Oman is in the midst of a profound digital transformation, propelled by a proactive government agenda and a technically advanced infrastructure. A central finding is the paradox of a highly connected population with world-class digital infrastructure and a national economy that has yet to fully realize its digital potential, particularly within the small and medium-sized enterprise (SME) sector. This discrepancy highlights a significant and largely untapped opportunity for strategic market entry and growth.
The report identifies several interconnected themes that define the current market dynamic:
- The transition from a stable mobile duopoly to a highly competitive tri-opoly, a shift catalyzed by the disruptive market entry of Vodafone. This heightened competition is forcing innovation and the development of new, high-value services beyond traditional connectivity.
- The critical role of mobile operators as not just network providers but as digital platform enablers. Through the expansion of mVAS and, most notably, Direct Carrier Billing (DCB), operators are creating a frictionless commerce environment that is essential for the growth of the broader digital ecosystem.
- The unique suitability of affiliate marketing as a low-risk, performance-based marketing model in Oman. This is driven by Omani consumer behavior, which places a high value on personal networks and trust, a dynamic that is perfectly aligned with influencer and community-driven promotions.
- The implementation of a new media law (Royal Decree No. 58/2024), which formalizes the digital space. This regulation introduces a layer of complexity and risk for non-compliant entities while simultaneously creating a more professional and trustworthy environment for legitimate, licensed businesses.
The confluence of these factors paints a picture of a market ripe for targeted investment and strategic action. The analysis concludes with actionable recommendations for mobile service providers, affiliate marketers, and investors seeking to capitalize on Oman’s promising digital future.
2. Oman’s Digital and Telecommunications Foundation: A Macro Analysis
The foundation of Oman’s digital market is a robust, well-funded infrastructure and a national policy framework that is actively steering the country toward a knowledge-based economy. These macro-level factors are essential for understanding the underlying potential of the mobile and digital sectors.
National Context: Vision 2040 and Digital Transformation
The Omani government’s strategic roadmap, Oman Vision 2040, is a long-term plan focused on economic diversification and national digitalization. The Tahawul Government Digital Transformation Program is a key component of this vision, demonstrating a commitment to modernizing public services. By November 2024, the program had achieved a 73% overall performance, a significant increase from 53% the previous year. This public-sector digitization effort has directly influenced consumer behavior; in 2024, digital government transactions neared 27 million, indicating a growing public trust in and familiarity with online services. This widespread public adoption creates a pre-primed consumer base that is more likely to engage with and pay for commercial digital products and mVAS. The government’s long-term objective is to raise the digital economy’s contribution to gross domestic product (GDP) from 3% in 2025 to 10% by 2040, signaling a clear, ambitious, and stable growth trajectory for the sector.
Digital Demographics and Internet Penetration
The Omani population is a key driver of digital growth. At the start of 2025, the population stood at 5.40 million, with a young median age of 29.3 years. The demographic skews male (60.6% in early 2024), a factor that can influence the consumption of certain digital content, such as online gaming or male-focused e-commerce verticals. Internet penetration is exceptionally high, reaching 95.3% in January 2025, up from 97.8% in early 2024, signifying that nearly the entire population is online. Mobile subscriptions are even more widespread, with a total of 8.13 million by May 2025, an impressive 150.8% penetration rate relative to the population in early 2024. This high per-capita subscription rate underscores a market that is not only mature but also highly receptive to mobile-centric services. Despite this advanced digital readiness, the paradox is that Oman’s digital economy currently contributes only 3.8% to GDP, and just 15% of its SMEs have an online presence. This discrepancy represents a vast, untapped market and a substantial opportunity for businesses that can provide services to bridge this gap.
Infrastructure and Performance
The quality of Oman’s telecommunications infrastructure is a major competitive advantage. The sector is financially robust, with revenues climbing to RO 920 million ($2.4 billion) in 2024. Investment intensity reached 28% of revenues in 2024, significantly exceeding the global average of 15-20%. This aggressive investment is translating into tangible results, with Oman ranking among the top 28 countries worldwide for mobile data speeds. In January 2025, the median mobile internet download speed was a rapid 92.13 Mbps, a 29.2% increase in a single year. Fixed broadband speeds are also high, reaching a median of 78.33 Mbps, with residential fiber-optic coverage expanding to 90% of housing units in 2024. This high-performance network is a critical enabler for any digital business, removing the barrier of connectivity and allowing for the seamless delivery of bandwidth-intensive services like video streaming, high-definition gaming, and complex mobile applications.
3. The Mobile Operator Ecosystem: From Duopoly to a Tri-opoly
The Omani mobile market, once a predictable duopoly, is now a dynamic, competitive arena, which is a significant factor in the growth of the mVAS and affiliate marketing sectors.
Key Players and Competitive Landscape
For years, the market was dominated by Omantel and Ooredoo, who held a virtual duopoly. This equilibrium was shattered by the market entry of Vodafone in March 2022. As the third mobile operator, Vodafone rapidly disrupted the landscape, capturing a 12% market share in terms of subscribers within two years. This aggressive entry has significantly impacted the incumbents, with Omantel’s market share dropping by five percentage points to 48% in 2024, even as Ooredoo maintained a slight lead in mobile subscriptions in 2023.
Vodafone’s strategy is centered on a “digital-first” and “asset-light” business model, which relies on a cloud-based 5G network and a strong focus on digital engagement through its app. This approach has proven highly successful in attracting customers, with a notable shift of users from both Omantel and Ooredoo to the new operator. The Telecommunications Regulatory Authority (TRA) is actively supporting this heightened competition by modernizing its infrastructure. A temporary suspension of the mobile number portability service was announced to upgrade the Central Number Portability System, a move specifically intended to strengthen competition and improve service quality. This regulatory support ensures that customer churn remains a key competitive lever, forcing all three operators to innovate their service offerings and pricing.
MVNOs and Niche Operators
The Omani market also features several Mobile Virtual Network Operators (MVNOs), which operate on the infrastructure of the major players. For example, Renna Mobile operates on the Omantel network, while FRiENDi Mobile uses Ooredoo’s infrastructure. These operators serve specific market segments, often offering simplified plans or unique services tailored to niche customer needs. A prime example is FRiENDi Mobile’s SMS Parking service, which allows users to pay for parking via a simple text message, demonstrating a basic form of mVAS that has found local relevance. The existence of these MVNOs confirms that the primary network infrastructure is robust enough to be leased and monetized by multiple providers, a strong indicator of market maturity.
This competitive pressure and the presence of diverse market players create a fertile ground for mVAS and affiliate marketing. As traditional voice and data revenue streams face increased price competition, operators are compelled to find new ways to monetize their subscriber base, with value-added services being a primary avenue.
| Mobile Operator | 2024 Market Share | Key Strategic Focus |
|---|---|---|
| Omantel | 48% (down 5%) | Integrated services, extensive fiber rollout, B2B platforms |
| Ooredoo | Leading subscriber share in 2023 | Digital services, content partnerships, strong 4G coverage |
| Vodafone | 12% in 2 years | Digital-first, cloud-based 5G, asset-light model |
| MVNOs (e.g., Renna, FRiENDi) | Niche market share | Prepaid services, targeted value-added services |
4. The Evolving Realm of Mobile Value-Added Services (mVAS)
Mobile Value-Added Services are a crucial component of the Omani digital ecosystem, acting as the primary monetization layer atop the robust telecommunications infrastructure. The growth of this market is driven by global trends that are highly relevant to Oman.
Global Trends and Local Relevance
The global mVAS market is a high-growth sector, projected to expand from $1,089.86 billion in 2024 to $3,237.18 billion by 2033, with a Compound Annual Growth Rate (CAGR) of 13.2%. Key drivers of this growth include the proliferation of smartphones, the expansion of 5G networks, and the rising consumer demand for mobile applications. These drivers are precisely mirrored in the Omani market, which boasts a high mobile penetration rate and one of the world’s fastest-growing 5G networks. Globally, the dominant mVAS segments have historically been SMS-based services, with mobile wallets and advertising now seeing the fastest growth. This global trend is directly reflected in the strategies of Omani operators.
Operator-Specific Offerings and DCB
Omani mobile operators are moving beyond basic connectivity to become comprehensive digital service providers. Their primary strategy is the expansion of mVAS and, most critically, the implementation of Direct Carrier Billing (DCB).
- Omantel: As the long-standing incumbent, Omantel has a comprehensive portfolio of developer APIs that allow third parties to integrate a variety of services, including Carrier Billing Check Out and Prepaid Top-up. This positions Omantel as a fundamental platform enabler for the digital economy. The company also offers a sophisticated B2B service, TASIL, a real-time, location-based SMS marketing platform that allows businesses to send highly targeted messages to selected customer segments. This service transforms a traditional mVAS (SMS) into a modern, data-driven marketing tool. Omantel also offers consumer-facing services such as the Omantel ENTERTAINER app, which provides 2-for-1 dining and entertainment offers.
- Ooredoo: Ooredoo has made significant strides in DCB, pioneering partnerships with both Apple and Google. Through this service, customers can make purchases on the App Store and Google Play Store and have the cost billed directly to their mobile number, either deducted from a prepaid balance or added to a postpaid bill. This is a transformative capability, as it bypasses the need for a credit card, which can be a significant barrier to online commerce for many users. The Ooredoo Pay and Ooredoo Pass services also demonstrate the company’s commitment to becoming a central platform for mobile financial services and other digital products.
| Feature/Service | Omantel | Ooredoo |
|---|---|---|
| Direct Carrier Billing (DCB) | Carrier Billing Check Out API | Apple Direct Carrier Billing ; Google Play Carrier Billing |
| Mobile Money/Payments | Prepaid Top-up API ; Bill Payment through app | Ooredoo Pay ; Mobile Financial Service |
| B2B Platforms | TASIL SMS marketing platform ; Developer APIs | N/A |
| Content/Entertainment | Omantel ENTERTAINER app | Entertainment services ; Stream On ; STARZPLAY Carrier Billing |
| Other Digital Services | Makasib Loyalty Program ; E-commerce & Vouchers APIs | eSIM ; Domain Name Registration ; Gift Cards |
The successful deployment of DCB creates a highly efficient monetization pipeline for affiliate marketers. By promoting digital products that can be purchased with a single click or with a simple One-Time Password (OTP), affiliates can achieve high conversion rates, directly linking their promotional efforts to tangible, billable results.
5. Affiliate Marketing in the Omani Context: A Growing Opportunity
Affiliate marketing in Oman is not just a viable channel; it is a strategically advantageous one due to specific market and cultural dynamics.
Market Drivers and Consumer Behavior
The effectiveness of affiliate marketing in Oman is deeply rooted in local consumer behavior. The market is characterized by strong community networks and local trust dynamics, where personal referrals and recommendations from trusted voices carry significant weight. This is in stark contrast to markets where brand advertising alone drives consumer decisions. The rapid growth of social media provides a fertile ground for this model; in early 2024, there were 3.97 million active social media users, equivalent to 84.8% of the total population. This provides a vast audience for digital campaigns. There is also a rising number of bloggers, nano- and micro-influencers in Arabic who are perfectly positioned to act as trusted affiliates and promoters. For businesses, this means that leveraging these local influencers is not just an option but a strategic necessity for success.
Profitable Verticals and Campaign Examples
The affiliate marketing model is particularly well-suited for E-commerce websites, Online service providers, SaaS businesses, Subscription-based models, and Educational platforms. These verticals benefit most from a performance-based, low-risk marketing approach. A compelling case study illustrates this potential: an Omani fitness supplement brand launched an affiliate program with 12 local gym influencers and 3 niche bloggers. The results were impressive, with over 1,800 clicks in the first two weeks and a cost-per-sale that was 50% less than traditional paid advertising. This demonstrates that in the Omani market, a well-executed affiliate strategy can deliver superior ROI compared to conventional advertising methods.
Ecosystem Players: Local Agencies vs. Global Networks
The Omani affiliate marketing ecosystem is a blend of local and international players. Global affiliate networks like impact.com and Temu offer a vast marketplace of offers and sophisticated tracking technology. However, the key to success often lies with local digital agencies like Oman Digital Solution, Moris Media, and BeOnTop. These local partners offer invaluable Arabic-language support and a deep understanding of who the trusted voices in Oman are. A successful strategy would likely involve leveraging the scalable technology and fraud protection of a global network with the on-the-ground, cultural expertise of a local agency to recruit the most effective affiliates.
6. The Regulatory Landscape: A Double-Edged Sword
Navigating the regulatory environment is paramount for any business operating in Oman’s digital space. Recent legal developments have both created new challenges and signaled a shift toward a more formalized, professional market.
The New Media Law (Royal Decree No. 58/2024)
A significant regulatory development is the new media law, Royal Decree No. 58/2024, which came into force on November 11, 2024. This law is comprehensive and requires a license from the Ministry of Information for all digital media activities, including operating news accounts on social media. The law applies to foreign media professionals as well. For those who engage in unlicensed activities, the penalties are severe, including imprisonment and fines ranging from 10,000 to 20,000 OMR. The law also prohibits content that misleads the public, violates public morals, or incites discrimination.
This law functions as a double-edged sword. On one hand, it creates a potential barrier to entry, particularly for un-incorporated affiliates and smaller content creators. This could stifle some grassroots digital marketing. On the other hand, it is a strategic advantage for legitimate, compliant businesses. By formalizing the digital space, the law reduces the presence of spam, fraudulent actors, and low-quality content that could erode consumer trust. For a company that obtains the necessary licenses and adheres to the regulations, this law provides a clear framework for operations, acting as a signal of legitimacy and trustworthiness in the market.
| Key Provision | Description | Implications for Digital Marketing & mVAS |
|---|---|---|
| Licensing | All digital media activities, including social media news accounts, require a license from the Ministry of Information (MOI). | Creates a barrier for small, un-incorporated affiliates and content creators. Compliance becomes a strategic asset for legitimate businesses. |
| Content Restrictions | Prohibits content that misleads the public, violates public morals, or incites discrimination. | Campaigns must be carefully localized and vetted for cultural appropriateness. Reduces risk of brand association with prohibited or controversial content. |
| Penalties | Violations can result in imprisonment and fines of up to 20,000 OMR for unlicensed activity. | High-risk for non-compliant entities. Emphasizes the need for due diligence and legal counsel before market entry. |
| Right of Reply | Individuals have the right to request corrections to inaccurate media content, which must be published within 3 days. | Businesses must be prepared for swift, transparent crisis management if their sponsored content or promotions are challenged. |
Telecommunications Regulation
The Telecommunications Regulatory Authority (TRA) is a proactive and modern regulator. The TRA’s recent temporary suspension of mobile number portability to upgrade its central system demonstrates a commitment to enhancing service quality and strengthening competition. This initiative, which makes it easier for consumers to switch providers, directly benefits the entire digital ecosystem by forcing operators to remain competitive on network performance and value-added services. The TRA’s actions signal a clear, long-term commitment to fostering a dynamic and consumer-friendly market.
7. Synergies, Challenges, and Future Outlook
The Interplay of the Three Pillars
The Omani digital ecosystem is a cohesive whole, where the three pillars of mobile operators, mVAS, and affiliate marketing are deeply interconnected. Mobile operators provide the high-performance, low-latency network infrastructure that makes bandwidth-intensive mVAS possible. These operators then act as the financial enablers for the digital economy through DCB, which provides a frictionless, non-credit-card-dependent payment method for these services. Finally, affiliate marketing serves as the most effective performance-based channel to drive consumer adoption and conversions by leveraging local trust and the high social media penetration rate. The success of one pillar is fundamentally dependent on the health and progress of the others.
Key Challenges
Despite its potential, the Omani market presents challenges. The primary obstacle is regulatory complexity, as businesses must navigate the new media law and its strict licensing requirements. There are also cultural nuances to consider, as marketing strategies that are successful elsewhere may fail if they do not account for the Omani consumer’s reliance on trust and personal networks. Finally, the low digital adoption rate among SMEs creates a market education challenge; significant effort is required to convince these businesses of the value of an online presence and digital marketing.
Future Trends
The Omani digital market is poised for significant long-term growth. It is highly likely that competition will continue to intensify among the “Big Three” mobile operators, leading to further innovation in pricing and service bundles. mVAS offerings are expected to diversify beyond entertainment to include more fintech, healthcare, and IoT services, supported by the government’s Vision 2040. There will be a continued and accelerating rise in the importance of localized, Arabic-language content and influencer-driven affiliate campaigns. The government’s goal of reaching a 10% digital economy contribution to GDP by 2040 provides a clear, data-backed trajectory for growth and a compelling reason for sustained investment.
8. Strategic Insights and Recommendations
Based on the analysis of Oman’s digital landscape, the following strategic recommendations are provided for key stakeholders:
- For Mobile Service Providers and mVAS Companies: The long-term growth of the sector hinges on moving beyond simple connectivity. It is recommended that operators aggressively expand their DCB partnerships with global and local app stores, streaming services, and e-commerce platforms to become the primary payment gateway for Omani consumers. A second key recommendation is to innovate in the B2B mVAS space, following Omantel’s lead with its TASIL platform, and offer high-value services such as enterprise messaging, IoT solutions for logistics and manufacturing, and secure mobile financial services for businesses.
- For Affiliate Marketers and Digital Agencies: Success in Oman requires a localized, trust-centric approach. It is recommended to prioritize partnerships with local bloggers, micro-influencers, and community leaders who can leverage their personal networks to drive authentic engagement. A significant opportunity lies in offering performance-based marketing services to the vast majority of Omani SMEs that currently lack an online presence. By demonstrating the value of a performance-based model, these agencies can become crucial partners in expanding Oman’s digital economy. Finally, it is imperative to treat regulatory compliance as a strategic asset, ensuring all necessary licenses are obtained under the new media law to build long-term trust and avoid severe penalties.
- For Investors: The Omani market is a high-potential, long-term investment opportunity. A balanced portfolio strategy is recommended, with investments in both the foundational infrastructure (telecom operators, fiber networks) and the content/marketing layer (mVAS platforms, digital agencies, and e-commerce ventures). The government’s clear strategic vision underpins the market, providing stability and confidence that the digital transformation is not a short-term trend but a national commitment.
