First Omani Investor Joins AI Special Economic Zone: What This Means for Business Growth and Innovation in Oman
MUSCAT: Renowned Omani real estate and investment company Afouq Investment and Development United has been appointed by Omani authorities to develop and operate a key section of the newly established Special Artificial Intelligence Zone in Muscat Governorate. This zone was officially inaugurated last week by Royal Decree No. 50/2026.
Afouq, which operates across Oman, Saudi Arabia, Yemen, and other markets, announced that it has secured a license to manage approximately 105,000 square meters within the AI-focused zone.
Dr. Siham Al Harthy, Chairperson of Afouq, expressed pride in being the first private sector operator of a special economic zone in this critical domain. She highlighted that this marks a significant advancement in empowering the private sector as a lead partner in pioneering New Economy projects.
"Our responsibility as the developer and operator will leverage the exceptional incentives offered by the zone’s regulatory framework, including exemptions from taxes and customs, as well as land usufruct rights," Dr. Al Harthy stated. "Our goal is to attract major global corporations and innovative start-ups in strategic fields such as semiconductors, quantum computing, and cybersecurity."
The Royal Decree formalizes the creation of the Artificial Intelligence Special Economic Zone under Oman’s special economic zones law. The zone is designed to provide an attractive package of incentives, exemptions, and privileges to entice both international technology firms and local innovators. Oversight of the zone will be conducted jointly by the Public Authority for Special Economic Zones and Free Zones and the Ministry of Transport, Communications and Information Technology.
Strategically, the AI zone is a vital element of Oman’s economic diversification plan under Oman Vision 2040, with AI identified as a key catalyst for future growth. The initiative aims to accelerate investment in advanced technologies, bolster start-ups, and stimulate innovation across sectors including logistics, healthcare, energy, and urban development. It also reflects efforts to elevate the digital economy’s share of the national GDP, enhance Oman’s status as a regional technology hub, and promote long-term digital self-sufficiency.
The concept of an AI Special Economic Zone was first revealed at Comex 2025 in September last year. At that time, Afouq announced it would spearhead the zone’s initial development phase covering 100,000 square meters, with a partnership involving Egypt’s Prime Group anticipating investment of around RO 100 million.
In a recent statement, Dr. Al Harthy reaffirmed Afouq’s commitment to collaborating closely with government bodies to ensure the zone becomes a leading destination for innovators and entrepreneurs. She emphasized that this initiative aims to raise the digital economy’s contribution to GDP to 4.2% and create high-quality job opportunities for Omani youth, aligning with the goals of the 11th Five-Year Plan and Oman Vision 2040.
Special Analysis by Omanet | Navigate Oman’s Market
The establishment of Oman’s Special Artificial Intelligence Zone and Afouq’s role as the first private operator marks a strategic pivot towards high-tech economic diversification under Oman Vision 2040. For businesses, this creates bold opportunities to engage in cutting-edge sectors like quantum computing, cybersecurity, and semiconductors, backed by substantial incentives and streamlined regulatory support. Smart investors and entrepreneurs should now prioritize innovation-driven ventures and partnerships within this zone to capitalize on Oman’s accelerating digital economy and its ambition to become a regional tech hub.
