Retail sales in Oman expected to grow more than 6% annually

Retail sales in Oman expected to grow more than 6% annually

Retail sector sales in Oman are expected to grow by more than six per cent annually over the next five years, primarily driven by increase in tourism activity, rise in per capita income and a growing population.

The sultanate’s retail industry is undergoing a transition with competitive developments across offline and online channels driving the market dynamics, according to Alpen Capital, a regional investment banking advisory firm.

Alpen Capital’s latest retail sector report projects GCC retail industry to surpass pre-pandemic levels in 2022, registering a 15.7 per cent year-on-year growth and reaching a revenue of US$296.8bn. As per the report, GCC retail industry sales are forecasted to grow at a compound annual growth rate (CAGR) of 5.7 per cent between 2022 and 2026 to reach US$370bn.

“Bahrain (7.3 per cent CAGR), Saudi Arabia (6.5 per cent CAGR) and Oman (6.1 per cent CAGR) are expected to grow above the GCC average of 5.7 per cent CAGR during 2022-2026 period. Growth in the smaller countries such as Bahrain and Oman is expected to primarily be driven by increase in tourism activity, rise in GDP per capita and penetration of organised retail stores,” Alpen Capital said.

Though the current retail landscape in Oman is largely dominated