Oman’s Ambition for a 10% GDP Boost from Digital Economy: Key Implications for Investors and Businesses
Muscat: Oman is amplifying its efforts to develop a dynamic digital economy through its National Digital Economy Programme, which emphasizes three main pillars: digital government, business digitization, and digital society. The objective is to elevate the sector’s contribution to 10% of the nation’s GDP by 2040.
Dr. Ali bin Amer al Shaithani, Under-Secretary of the Ministry of Transport, Communications and Information Technology (MoTCIT), highlighted that the digital economy is projected to contribute approximately 3% to GDP by the end of 2025. This initiative aligns with Oman Vision 2040 and will be implemented in four phases, progressing from the integration of digital government services to the export of digital offerings.
Oman has made noteworthy advancements on the global stage, currently ranking 45th in AI readiness, 41st in e-Government development, and 1st in cybersecurity readiness, with a 50th place in network readiness. Al Shaithani noted the ambition to break into the top 20 globally across these indicators.
A significant milestone is the launch of the National Programme for Artificial Intelligence and Advanced Digital Technologies in 2023. This initiative aims to foster AI adoption across various sectors, localize AI technologies, and establish governance frameworks. It comprises 32 projects that focus on enhancing AI readiness, supporting startups, and improving research outputs.
Oman’s flagship initiatives include the AI Economics Initiative, which is backed by a funding of RO 25 million, and notable projects such as Mu’een AI, an Omani language model designed for government use. Other initiatives include the AI Studio, AI Makers, and the National Open Data Portal.
To further promote innovation, Oman has inaugurated the Centre for the Fourth Industrial Revolution in collaboration with the World Economic Forum. Additionally, a National Policy for the Safe and Ethical Use of AI has been established, along with the formation of an AI Experts Committee encompassing representatives from public, private, and academic sectors.
Other significant initiatives involve the Oman Digital Triangle, created to host AI data centers powered by sustainable energy, and the Green AI Alliance, which brings together 34 companies and institutions to encourage eco-friendly AI investments.
Moreover, a dedicated Artificial Intelligence Zone near Muscat International Airport has been announced, featuring incentives to attract regional AI firms and strengthen Oman’s standing as a digital innovation hub in the Middle East. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s commitment to building a robust digital economy presents significant opportunities for businesses, particularly in AI adoption and digital services, which can enhance operational efficiency. However, this shift also brings risks related to cybersecurity and competition from global players as Oman strives for a top 20 ranking in digital readiness. Savvy investors and entrepreneurs should consider engaging with government initiatives and align their strategies with emerging technologies to capitalize on the anticipated growth in the digital sector.
