First Omani investor announced for AI Special Economic Zone

MUSCAT: Well-known Omani real estate and investment firm Afouq says it has been selected by Omani authorities to develop and operate a section of the new Special Artificial Intelligence Zone in Muscat Governorate, formally established by Royal Decree just last week.
Muscat-based Afouq Investment and Development United, which has a presence across Oman, Saudi Arabia and Yemen, among other markets, announced in a post that it has been granted a licence to develop, operate and manage a roughly 105,000 m² plot within the new AI-focused zone.
Commenting on the licence, Dr Siham al Harthy, Chairperson of Afouq, said: “We take great pride in this trust, becoming the first private sector operator of a special economic zone in this vital field. This reflects a qualitative shift in empowering the private sector as a key partner in leading New Economy projects”.
“Our role as developer and operator is centred on leveraging the exceptional incentives provided by the zone’s regulatory environment, including tax and customs exemptions and land usufruct rights. Our objective is to attract major global corporations and start-ups in strategic sectors such as semiconductors, quantum computing and cybersecurity”.
Royal Decree No 50/2026, issued last week, formalises the establishment of the Artificial Intelligence Special Economic Zone to operate within the framework of Oman’s special economic zones law, offering a package of incentives, exemptions and privileges designed to attract both global technology firms and local innovators. The zone will be overseen by the Public Authority for Special Economic Zones and Free Zones in coordination with the Ministry of Transport, Communications and Information Technology, which will jointly supervise its development, management and operations.
Strategically, the AI zone is positioned as a cornerstone of Oman’s broader economic diversification agenda under Oman Vision 2040, with artificial intelligence identified as a key driver of future growth. The initiative aims to accelerate investment in advanced technologies, support start-ups and foster innovation across sectors such as logistics, healthcare, energy and urban development. It also reflects a wider push to increase the contribution of the digital economy to national GDP, while strengthening Oman’s position as a regional hub for emerging technologies and enhancing long-term digital self-sufficiency.
Plans for a dedicated AI Special Economic Zone were first unveiled last September at Comex 2025. Afouq announced at the time that it had been entrusted with the first phase of the zone’s development, covering an area of 100,000 m². A partnership between Afouq and Egypt’s Prime Group also envisaged investment inflows of around RO 100 million in this initial phase.
In its most recent post on Monday, Afouq’s Chairperson Dr Al Harthy said the company was committed to working closely with government entities to ensure the zone’s readiness to become a premier destination for innovators and entrepreneurs.
“This initiative aims to increase the digital economy’s contribution to GDP to 4.2% and provide high-quality employment opportunities for Omani youth, aligning with the objectives of the 11th Five-Year Plan and Oman Vision 2040”, she added.