Oman’s Digital Economy Investments Hit RO 1.2 Billion: What This Means for Entrepreneurs and Investors
MUSCAT, JAN 12 — The Ministry of Transport, Communications and Information Technology announced that investments in Oman’s Information Technology sector have reached RO 1.2 billion over the past five years. This disclosure was made during a press briefing held in Muscat on January 12.
Eng. Said bin Hamoud Al Maawali, Minister of Transport, Communications and Information Technology, highlighted that approximately 70 percent of these investments were fueled by direct foreign investment, underscoring increasing international confidence in Oman’s digital economy.
The government’s digital transformation made substantial progress in 2025, with overall program performance rising sharply from 73 percent at the end of 2024 to 94 percent by the end of 2025. The average digital transformation performance across government entities climbed to 85 percent in 2025, up from 77 percent in 2024. By the end of 2025, 2,869 priority government services had been simplified, while 2,277 core services and automated permits were digitized, compared to 1,700 services at the end of 2024.
The Minister noted that digital services have reduced in-person visits to government offices by around 25 percent.
The Ministry also launched the Unified National Portal for Government Services, providing around 36 digital services and consolidating government services under one digital platform. Additionally, the ‘Thiqah’ digital identity application was introduced to enable secure access to e-services and electronic document signing. The ‘Tajaob’ platform was launched to receive public suggestions, complaints, and reports, further promoting participatory digital governance.
To advance digital skills development, the Ministry initiated the Irtiqaa Programme, offering specialized training in digital project management, change management, and data analysis.
Employment in the ICT sector showed notable improvement, with Omanisation reaching 45.5 percent in 2025, up from 38 percent in 2024. Omanisation in technical, specialized, and leadership roles increased to 69 percent from 63 percent.
The Makeen initiative has trained over 11,000 graduates and jobseekers since its inception, including 2,032 beneficiaries in 2025. The initiative also witnessed the approval of 21 freelance ICT activities.
Supporting technology startups remains a priority. The Oman Startup Hub, established as a national digital interface, connects startups with investors, incubators, accelerators, and support organizations. To date, more than 200 technology startups, 48 incubators and accelerators, and over RO 127 million in funding have been registered.
The Ministry also launched the National Open Data Portal to provide access to official government data in open formats, fostering innovation, research, and private-sector engagement.
Efforts are underway to establish a Fourth Industrial Revolution Centre focused on advanced technologies including artificial intelligence, the Internet of Things, robotics, and big data analytics.
In 2025, Oman made progress in several global digital economy rankings, achieving 41st place globally in the E-Government Development Index, 50th in the Network Readiness Index, and Tier One status in the Global Cybersecurity Index. The Sultanate advanced 6 percent in the 2024 E-Government Services Maturity Index by the United Nations Economic and Social Commission for Western Asia, ranked first in the Arab world and 50th globally in the 2025 Postal Development Index by the Universal Postal Union, and achieved first place in West Asia and ninth globally in open data for 2024.
In the semiconductor sector, the Ministry supported the organization of the second Global Semiconductor and Electronic Chips Executive Summit in Oman, which gathered around 140 CEOs from international companies in semiconductor design, cooling technologies, and equipment. The event featured 40 speakers and approximately 25 specialized working papers.
Building on this momentum, the Ministry announced the launch of a National Semiconductor Programme. This initiative integrates public and private sector efforts to position Oman within global semiconductor value chains, focusing on research and development, workforce localization, and establishing a Semiconductor Centre of Excellence to promote innovation, testing, and advanced manufacturing.
A five-year talent development roadmap has been devised to train and upskill Omani professionals in chip design, cooling technologies, and advanced semiconductor manufacturing in collaboration with international partners. The programme aims to position Oman as a neutral regional hub for semiconductor investment, providing a stable regulatory environment, advanced digital infrastructure, and access to global markets.
The space sector also showed growth, with 25 companies operating in 2024 and employment exceeding 400 in 2025 across public and private sectors. The sector contributed 0.041 percent to GDP by the end of 2024, underscoring its emerging role in the national economy.
In 2025, Oman signed an agreement to design, manufacture, and launch an Omani satellite, with implementation expected to commence in 2026. This initiative aims to establish sovereign space infrastructure and reduce dependence on leased external capacities.
To foster innovation and entrepreneurship, the Ministry launched the Oman Space Accelerator, targeting 10 local startups, and continues to support the Etlaq Spaceport with technical and operational assistance for scheduled missions.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s robust digital transformation and significant foreign investments totaling RO 1.2 billion highlight a rapidly growing technology ecosystem, presenting lucrative opportunities for businesses in IT, digital services, and tech startups. Smart investors should focus on emerging sectors like semiconductors and space technology, leveraging Oman’s strategic push towards innovation, talent development, and its rising global digital economy rankings for long-term gains. However, businesses must also stay agile to navigate evolving regulatory frameworks and capitalize on government-driven digital infrastructure expansions.
