Oman's first specialised economic zone dedicated to artificial intelligence is estimated to attract RO 106 million ($275 million), in three phases over an area of approximately 104,000 square metres near Muscat International Airport.
The move is a part of Oman's strategic commitment to building a knowledge- and innovation-based economy. The move marks a shift from consuming imported technology and solutions to producing, developing, and competing with them on a global scale.
Dr Siham bint Ahmed al Harthi, Chairperson of Afouq Investment and Development United—the developer and operator of the zone—stated that construction on Phase 1 is expected to commence in the fourth quarter of 2027.
The AI zone will feature business incubators and accelerators, prototyping and robotics labs, industrial automation hubs, a dedicated research and application centre, a data centre, and cloud computing infrastructure. It will also offer training and event facilities, while active negotiations are underway with leading international universities to establish a specialised university focused on AI technologies.
Dr Al Harthi said Afouq is in discussions with major international technology companies, including Microsoft and IBM. The company is also examining partnerships with local and international investment funds and firms, leveraging the competitive incentives offered by Oman’s Special Economic Zones and Free Zones, which include tax exemptions and 100 per cent foreign ownership for investors.
The zone aims to serve as a hub for innovation, scientific research, and advanced technology localisation, driving local tech production and integrating AI applications across various economic and service sectors to boost added value and diversify income streams. Furthermore, the zone targets the growth of Omani startups through advanced scaling programmes, empowering them to expand and transform into billion-dollar "unicorn" companies, supporting Oman Vision 2040’s goal of raising the digital economy’s contribution to GDP to approximately 10 per cent by 2040.
Royal Decree No 50/2026 formalised 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.
By Hamoud al Mahrezi
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