MUSCAT: A wide array of Omani government officials and business leaders have welcomed Thursday’s Royal Decree by His Majesty Sultan Haitham bin Tarik establishing the Sultanate of Oman’s first dedicated Special Economic Zone for Artificial Intelligence (AI), describing it as a major milestone in the country’s digital transformation journey.
Enshrined under Royal Decree No 50/2026, the AI-SEZ signals a clear shift from policy ambition to implementation within Oman’s evolving digital economy. By offering incentives, exemptions and a tailored regulatory framework, the zone aims to attract AI-driven enterprises and foster a concentrated innovation ecosystem. This approach aligns closely with Oman Vision 2040, which positions AI and advanced technologies as key enablers of economic diversification and productivity growth.
Market experts say the zone is designed to attract a broad spectrum of high-value activities, including AI startups, global technology firms, semiconductor and chip design companies, data analytics providers and research institutions. It also seeks to catalyse partnerships with international ecosystems and venture capital players. Compared to large-scale AI hubs elsewhere in the region, Oman’s model is more targeted and zone-centric, reflecting its established free-zone strategy while signalling a greater openness to foreign participation in strategic sectors.
The initiative further supports Oman’s ambition to increase the digital economy’s contribution to GDP to around 10 per cent by 2040. It is expected to act as a focal platform for localising advanced technologies, developing human capital and accelerating AI adoption across key sectors such as logistics, energy, tourism and manufacturing.
Dr Seema al Kaabi, Acting Director General, Ministry of Transport, Communications and Information Technology, described the project as a strategic milestone underscoring Oman’s commitment to strengthening its position in advanced technologies. She noted that it builds on ongoing national efforts, in collaboration with the Public Authority for Special Economic Zones and Free Zones, to create an integrated ecosystem that supports AI investment, fosters innovation and attracts global players. The zone, she added, will enhance the Sultanate of Oman’s appeal to advanced technology investors while nurturing local talent and supporting the expansion of the digital economy.
Dr Talal al Saadi, Director of the Under-Secretary’s Office at the Ministry of Interior, characterised the initiative as a transformative step towards a knowledge-based, innovation-driven economy. He highlighted its broader role in advancing economic diversification, fostering a cohesive AI ecosystem that brings together startups, global firms, researchers and investors; and enabling the integration of AI across government services to improve efficiency, transparency and decision-making. He also emphasised its importance in developing future-ready national talent and strengthening Oman’s global competitiveness.
Industry stakeholders have pointed to the deeper strategic implications of the move. Mohammed al Tamami, Co-Founder of Mamun, said the AI Special Zone reflects a focus on digital sovereignty, noting that AI requires a full stack of enablers including compute capacity, energy, regulation, capital and data governance, as well as trusted digital “corridors”. He stressed that Oman is not starting from scratch, but building on a growing foundation of digital infrastructure, including data hosting, crypto-mining and energy-linked assets, alongside ambitions such as Green Data City. These developments position the Sultanate of Oman as an emerging node in the global data economy.
Oman’s AI sector has already witnessed steady growth in recent years, driven by national programmes, rising investment and expanding real-world adoption. Since the launch of the National Programme for Artificial Intelligence and Advanced Digital Technologies in 2024, efforts have focused on infrastructure development, public–private collaboration and governance frameworks.
Backed by more than RO 65 million in investments and initiatives such as the Oman Digital Triangle and Green AI Alliance, AI is now among the fastest-growing components of a digital economy that contributes roughly RO 800 million to GDP, reinforcing its role as a key pillar of the Sultanate of Oman’s diversification strategy.
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