Oman’s AI Transformation: From Apps to Infrastructure—What It Means for Investors and Entrepreneurs
MUSCAT, MAY 19 — The next phase of artificial intelligence development in Oman will largely hinge on the local infrastructure required for hosting, securing, and scaling various applications, according to a senior official at Otech.
Hassan Al Lawati, a representative of Otech—Omantel’s technology division—emphasized the company’s ongoing expansion in cloud services, data centers, cybersecurity, and AI computing capabilities. This growth is in response to the rising demand for local digital infrastructure from both government and enterprise sectors.
During a recent banking technology forum in Muscat, Al Lawati explained that Otech currently operates seven Tier-3-certified data centers with a total capacity of 12 megawatts, including facilities in Muscat and Duqm. The company is also enhancing its AI computing infrastructure by utilizing NVIDIA GPU platforms.
“The cloud is structured in layers,” Al Lawati stated, referring to the arrangement that encompasses data centers, infrastructure, software platforms, and application data. “A solid understanding of this structure enables better planning and organization of applications.”
Transitioning from traditional co-location and hosting services, Otech has emerged as a comprehensive provider of cloud computing, managed services, cybersecurity, and AI infrastructure. Its client base includes sectors like telecommunications, oil and gas, banking, healthcare, and government.
Currently serving around 1,200 customers, Otech has ventured into AI and large language model (LLM) services over the past three years. They are delivering GPU-driven workloads for healthcare imaging, computer vision, and seismic analysis.
Otech also offers multi-cloud services through partnerships with global providers such as AWS, Oracle Cloud Infrastructure, and Huawei Cloud, with plans for additional agreements in the pipeline.
Al Lawati noted that banks and enterprises are increasingly upgrading legacy systems through cloud-native applications, cybersecurity enhancements, and AI-enabled digital platforms. Some fintech applications can now be deployed within days using containerized cloud technologies.
A key highlight from the presentation was the growth of AI systems hosted locally for government use. Otech is aiding these initiatives through a national platform developed in collaboration with the Ministry of Transport, Communications, and Information Technology, currently connecting around 23,000 government users.
He further mentioned that organizations are seeking greater control over their data, applications, and cybersecurity infrastructure as cloud adoption accelerates across various sectors.
This trend aligns with a broader movement in the Gulf, where states are heavily investing in data centers, AI computing capacity, and sovereign digital infrastructure as part of their economic diversification and technology strategies.
While global discussions on AI often focus on applications and chatbots, the underlying competition is increasingly centered on the infrastructure that supports these technologies—including data centers, compute capacity, cloud platforms, and cybersecurity systems.
For Oman, developing robust digital infrastructure could become a crucial component of Oman Vision 2040, alongside efforts in logistics, energy, and industrial diversification.
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The shift in Oman towards developing robust digital infrastructure signals a critical opportunity for businesses to enhance operational efficiencies and leverage AI capabilities. This focus on data centers and cybersecurity not only mitigates risks related to data sovereignty but also aligns with Oman Vision 2040’s goals for economic diversification. Smart investors should consider positioning themselves in sectors that embrace these advancements, particularly in technology partnerships and cloud services, to capitalize on the anticipated surge in demand.
