Sultanate of Oman steers digital economy toward artificial intelligence and targets $3.9 billion

Oman moves to the second implementation phase of its digital economy plan, which runs until 2030, placing artificial intelligence at the core of the economic growth equation with the aim of raising the sector’s contribution to GDP to 1.5 billion Omani rials, roughly $3.9 billion. The step, whose details were announced by the Omani news agency, does not merely set ambitious targets but also sets specific commitments to attract 300 million Omani rials of direct tech investment and generate 3,000 jobs annually in advanced technology fields.

The Omani pathway, as explained by Ghaleb bin Saeed Al-Maamari, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion, focuses in its current phase, 2026 to 2030, on deploying artificial-intelligence technologies and smart solutions to improve the operational efficiency of national entities, especially small and medium-sized enterprises. The step is part of a phased strategy across four stages; the third stage, 2031 to 2035, will consolidate national digital industries and build their own foundations, while the fourth stage, 2036 to 2040, is dedicated to expanding digital exports and enhancing the Sultanate’s global competitiveness.

The most telling indicator of structural transformation was not merely the tracking of investment figures, but the recorded jump in the localization of technical jobs.Ali bin Amer Al-Shidhani, Undersecretary of the Ministry of Transport, Communications and Information Technology, explained that the localization rate in the technology sector rose to 46 percent in 2026, compared with roughly 33 percent in 2022. This 13-point increase over four years reflects a direct government directive to place local talent at the core of managing and operating the digital infrastructure, rather than relying solely on imported solutions.

These moves occur within a broader regional context in which Gulf Cooperation Council sovereign wealth funds are investing tens of billions of dollars in advanced semiconductors, large data centres and their associated software suites. The Omani approach, however, focuses early on the efficiency of local small and medium-sized enterprises and their integration into the digital production system, giving clear priority to national training and employment before shifting to industrial export in later stages.

What changes in practice for software developers and tech companies in the Gulf, Egypt and the Levant?At the commercial expansion level, the rapid rise in Oman’s localization rates, together with the target of creating 3,000 specialised jobs annually, forces regional firms to revisit their entry strategies for Muscat; models based on remote service delivery or mobile teams lose appeal in favour of establishing a physical presence and building local teams within the Sultanate. Regarding business solutions, Muscat’s plan to boost the productivity of small and medium-sized projects with artificial-intelligence tools opens the door to regional automation software that addresses local work requirements, provided it delivers direct operational value that justifies spending and aligns with national standards.

The editorial board sees Muscat’s announcement as an explicit bet on building sustainable self-reliance; the test in the next phase will be whether these targets can turn AI investments and national talent into a coherent export pillar by 2040.