Oman plans to build a new economic area centred on developing its artificial intelligence capabilities, as the sultanate steps up its technology sector to boost its economy.
The Special Artificial Intelligence Zone, which will be created in the governorate of Muscat, will grant incentives and benefits to projects that will be established within it in accordance with free zone laws, the Oman News Agency said on Thursday.
“The board of directors of the Public Establishment for Special Economic Zones and Free Zones shall appoint those responsible for managing, operating and developing the zone in co-ordination with the Ministry of Transport, Communications and Information Technology,” it said.
Building out a strong AI infrastructure is one of the main pillars of Oman's Vision 2040 strategy, a plan that, much like its Gulf neighbours, is aimed at diversifying its economy from oil and developing more sustainable means of growth.
The hydrocarbon industry plays a key role in Oman’s modern and expansive infrastructure, including electric utilities, roads, public education and medical services, according to the US International Trade Administration.
In March, the ministry launched the sultanate's most comprehensive push yet to develop a self-sustaining digital economy, whose contribution to gross domestic product is planned to reach 10 per cent by 2040.
Also last month, the Oman Investment Authority, through its subsidiary Ithca Group, announced that chip companies GSME, Lumotive and Movandi will be starting operations in the sultanate, at a combined investment of 14.63 million Omani riyals ($38 million), to help the country play a bigger role in key industries such as consumer electronics and electric vehicles.
In January, Oman approved its national budget for 2026 and launched the next phase of its economic programme that aims for 4 per cent growth through 2030. Also that month, the sultanate approved the creation of an international financial centre, giving the sultanate a new tool to attract capital.
Also, S&P Global Ratings said in March that Oman's fiscal health and strategic location will help it withstand the effects of the Iran war, as it affirmed the country's credit rating and stable outlook. The MF expects the sultanate to grow by 3.5 per cent in 2026, bucking the regional trend.
Oman has largely been unaffected by the shutdown of the Strait of Hormuz, as it is the only Gulf state whose exports do not depend on the waterway.
