Artificial Intelligence Special Zone in Muscat to drive digital economy

MUSCAT: Oman has issued Royal Decree No (50/2026) establishing a Artificial Intelligence Special Zone in Muscat Governorate, marking a significant step in advancing the Sultanate of Oman’s digital economy and innovation-driven growth strategy.
The initiative aims to accelerate the implementation of innovation projects, strengthen the knowledge economy and support economic diversification goals outlined in the Eleventh Five-Year Development Plan (2026–2030), in alignment with the broader objectives of Oman Vision 2040.
The Board of Directors of the Public Authority for Special Economic Zones and Free Zones will oversee the appointment of the entity responsible for managing, operating and developing the zone in coordination with the Ministry of Transport, Communications and Information Technology.
Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), said the new zone represents a 'qualitative leap' in Oman’s transition towards a digital economy and reinforces Oman’s position as a regional hub for advanced technologies.
He noted that the project aligns with national efforts in economic diversification and builds on progress in digital transformation and e-government services.

The planned AI zone will cover approximately 104,000 square metres in the Wilayat of Seeb, adjacent to the Civil Aviation Authority building. It will operate under the Special Economic Zones and Free Zones Law, offering incentives, exemptions and facilities designed to attract local and international investors.
The zone is expected to host industries including semiconductors, robotics and artificial intelligence, while also supporting startups and global technology firms. It will function as a platform for industrial integration, linking supply chains and enhancing production capabilities across sectors.
Eng Said bin Hamoud al Maawali, Minister of Transport, Communications and Information Technology (MoTCIT), said the project is a key pillar of the National Digital Economy Programme and will serve as a hub for AI startups from Oman and abroad. He added that it will provide a structured ecosystem for scaling technology companies and expanding into regional and global markets.
The Authority has already begun developing an executive roadmap for the zone, including governance structures, policy frameworks and performance indicators to ensure alignment with national priorities and investor requirements.
The establishment of the zone increases the number of special economic zones, free zones and industrial cities under the Authority to 24.
Investments in these zones rose by RO 1.4 billion in 2025, bringing total committed investments to RO 22.4 billion, reflecting a 6.8 per cent growth compared to 2024. — ONA