His Majesty Sultan Haitham bin Tarik’s state visit to the United Kingdom from October 20 to 22, 2026 will build on the existing bilateral trade and investment ties and will speed up the modernisation of Oman’s knowledge and technology economy. Most importantly, the visit has further consolidated the long standing relationship between the two friendly countries, while creating new opportunities in different sectors of the Omani economy, and especially in the investment opportunities of establishing a large scale Artificial Intelligence data centre in Salalah.
STRATEGIC INVESTMENT IN OMAN’S DIGITAL FUTURE
One of the most important outcomes of the visit was signing of an agreement between Oman’s Ministry of Transport, Communications and Information Technology and UK-founded infrastructure developer Yamna, for the establishment of the Salalah Al Khadra Digital project.
The project is anticipated to require an investment exceeding £1 billion (RO 500 million) in the first phase. This investment helps achieve the development of Oman’s digital infrastructure to support Artificial Intelligence, Cloud Computing and High-Performance Computing.
The project is an important addition to the existing initiatives to develop Oman’s digital and knowledge economies and help achieve Oman Vision 2040.
ECONOMIC CONTRIBUTION AND DIVERSIFICATION
The Salalah data centre is expected to make a significant contribution to the Omani economy, and beyond that, create different economic activities and provide opportunities for ancillary and new digital services.
The project should create economic diversification opportunities by further developing the Information and Communication Technologies sector. Digital infrastructure is the foundation for the development of emerging sectors like Artificial Intelligence, Fintech, cybersecurity and advanced manufacturing.
The project also has the potential to positively impact Oman's position as a regional computing hub by attracting international technology companies to set up regional computing and data centres in Oman.
Additionally, the project has the potential to create a digital ecosystem that draws additional technology-related services, and boosts research and innovation in the field.
LOCAL CONTENT AND EMPLOYMENT
The construction of the data centre in Salalah presents local content and employment opportunities. It will create a local market for a variety of goods and services, from construction materials to professional services (construction, engineering, legal, financial, etc) and support services (maintenance and other services). Most importantly, the project has the potential to create national capabilities and jobs in data engineering, Artificial Intelligence and Cybersecurity.
Investment contracts and agreements should set local content and employment targets, and require participation of Small and Medium Enterprises. Agreements should also provide for structured programmes for the transfer of technology and knowhow, as well as partnerships with Omani academic and technical institutions.
Integrating renewable electricity with more efficient cooling and water management systems improves the project’s environmental performance and supports Oman's efforts to develop one of the best sustainable digital infrastructures in the world.
Furthermore, it would help Oman meet its national net-zero goals, demonstrating the synergistic relationship between the economy and the environment.
The Salalah project presents an opportunity to develop a long-term, value-add national economy rather than an investment in technology.
Success will hinge on effective implementation and the availability of adequate infrastructure, an educated workforce and the engagement of Omani companies.
TRANSFORMATIVE INVESTMENTS
Most importantly, His Majesty Sultan Haitham bin Tarik’s visit illustrates the potential of strategic international partnerships to catalyse long-term, transformative, sustainable investments. By strategically integrating foreign investments and knowledge with local, Oman can digitise its economy, build local industry, and move towards the aims of the Oman Vision 2040.
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