Oman moves to scale AI ecosystem with new special economic zone

Oman has moved to formalise its artificial intelligence strategy with a Royal Decree from Haitham bin Tarik creating a dedicated economic zone for AI in the capital governorate of Muscat.

State media said the new district will be called the Special Artificial Intelligence Zone, positioning it as a central pillar within Oman’s Vision 2040 roadmap for digital transformation. Officials described it as one of the most structured policy steps so far to anchor the country’s technology ambitions in a defined regulatory and investment framework.

Under the decree, the board of Public Authority for Special Economic Zones and Free Zones (OPAZ) has been tasked with appointing an operator to oversee the zone’s development and day-to-day management. The process will be coordinated with the Ministry of Transport, Communications, and Information Technology, linking infrastructure planning with regulatory oversight and digital policy.

Companies operating inside the zone will receive incentives already available under Oman’s free zone laws, including exemptions and operational benefits designed to lower entry barriers. 

Officials say the structure is intended to “create a competitive investment environment” that appeals to global technology firms as well as local startups working in advanced fields.

National AI push tied to economic diversification

The zone is part of a wider rollout under the National Programme for Artificial Intelligence and Advanced Digital Technologies, which sits at the core of Oman’s diversification plans. 

Authorities are prioritising AI adoption in sectors such as logistics, healthcare, oil and gas, financial services, and urban development, where efficiency gains and automation could have an immediate economic impact.

While Oman’s AI footprint remains relatively small compared with leading markets, the government has been building capacity through infrastructure projects and research initiatives. 

Muscat has emerged as the main centre for these efforts, hosting innovation hubs and pilot programmes supported by telecom operator Omantel and academic institutions such as Sultan Qaboos University.

Authorities are also pushing for closer collaboration between the public and private sectors. Startup development, localised AI solutions, and applied research have been identified as key areas, particularly in logistics optimisation, healthcare delivery, and energy efficiency.

Despite these efforts, measurable indicators such as patent filings and research output remain limited. Policymakers argue that the current base leaves room for rapid expansion if investment flows and regulatory clarity improve.

The creation of a dedicated AI zone adds Oman to a growing list of Gulf states building specialised ecosystems to attract capital and talent in emerging technologies. The strategy focuses not only on securing foreign investment but also on developing domestic capabilities and reducing reliance on external technology providers over time.

Officials say the framework is designed to support long-term digital self-sufficiency while integrating Oman into global innovation networks. Positioning Muscat as a regional technology centre remains a central objective.

Execution will be critical. The pace at which governance structures are put in place, along with the zone’s ability to draw major international firms, will determine its near-term impact. Even so, the Royal Decree sets a clear direction: Oman is moving to secure a place in the global artificial intelligence economy.