MUSCAT : Oman’s online food delivery market is valued at more than 100 million riyals annually, highlighting the sector’s growing economic weight and the need for firm regulation to protect jobs and businesses, the Minister of Transport, Communications and Information Technology said.

Speaking to The Arabian Stories, His Excellency Eng. Saeed Al Mawali said the size of the market meant that last November’s disruption, linked to operational issues involving Talabat, had a rapid and widespread impact on drivers, restaurants and consumers.

“The size of the online food delivery market in the Sultanate exceeds 100 million riyals annually,” Al Mawali said, adding that Muscat Governorate alone is home to around 6,000 delivery service workers.

The minister said the disruption caused confusion across the sector and resulted in lost business opportunities, prompting swift government intervention to stabilise operations and limit economic fallout.

As part of the response, authorities restructured the regulatory framework by granting licences to nine approved intermediary service providers. Under the new model, these companies now manage delivery operations instead of the platforms themselves, a move Al Mawali said ensures greater clarity, accountability and legal protection for workers in the sector.

In parallel, the ministry issued permits for around 2,000 motorcycles, introducing a requirement to employ 20 Omanis for every 200 motorcycles licensed. The measures also included regularising the employment status of delivery workers whose arrangements were previously non-compliant with regulations.

“This approach has helped create new job opportunities, safeguard workers’ rights and support Omani-owned small and medium-sized enterprises,” Al Mawali said, noting that the reforms were designed to increase local participation while maintaining service continuity.

Authorities also encouraged the use of motorcycles as part of broader sustainability goals, citing their role in improving delivery efficiency and reducing emissions.

Services resumed after the delivery company resolved its operational issues, easing disruptions for residents who rely heavily on online platforms for daily meals.

Commenting more broadly on logistics and trade flows, Al Mawali said about 80% of goods do not enter Oman through official entry points, with most collected domestically and having value added before reaching consumers — a trend he said reflects the changing structure of supply chains within the Sultanate.

The minister said the government would continue reviewing transport and logistics regulations to ensure market stability, support employment and align sector growth with sustainability and economic diversification goals.

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