Oman Vision 2040 advocates “One Government,” a partnership between the government, the private sector, civil society and citizens. His Majesty Haitham Bin Tarik requires a digital backbone that empowers the Omani people to realize their full potential.
Special Economic Zone FOR AI
Oman has taken a significant step forward in its digital journey, with a wide range of government officials and business leaders welcoming a new Royal Decree by His Majesty Sultan Haitham bin Tarik to establish the country’s first Special Economic Zone dedicated to artificial intelligence (AI). The move is being seen as a defining moment in shaping Oman’s future as a technology-driven economy.
The initiative aligns with Oman’s broader vision to strengthen its AI capabilities under the National Programme for Artificial Intelligence and Advanced Digital Technologies—an important part of the country’s push toward economic diversification. The focus is clear: integrate AI across critical sectors such as logistics, healthcare, oil and gas, financial services, and smart cities.
Semiconductor Hub
To become a regional semiconductor hub, Oman is taking a bold step forward. The Oman Investment Authority (OIA), through its ICT subsidiary ITHCA Group, has attracted three global chip companies to establish operations in the Sultanate, bringing in a combined investment of RO 14.63 million (approximately US$38 million). With this move, Oman has positioned itself at the center of a global industry that underpins everything from artificial intelligence and 5G to electric vehicles and cloud computing.
All three firms have unique specializations in the nascent semiconductor ecosystem in Oman, including chip design, optical AI technologies, and 5G wireless technologies.
GSME: Full-Stack Chip Design Center
A US-based company, GSME, has invested RO 5 million ($13 million) to establish a fully integrated semiconductor design center in Oman. It specializes in RF (radio frequency) chips, power solutions, and semiconductor manufacturing processes. Furthermore, GSME has already trained 92 Omani graduates in chip design, with 67 of them securing full-time employment in the industry. The most important aspect of the initiative is that Oman is not just attracting investment, it is also building a local talent pipeline in one of the most in-demand engineering fields in the world.
Lumotive: AI-Powered O2ptical Sensing
A US-based company, Lumotive, has committed RO 1.93 million ($5 million) to its branch in Oman. The company specializes in programmable optics and Light Control Metasurface (LCM) technology for 3D sensing. It is this type of deep-tech that enables autonomous vehicles, robotics, and industrial automation. With Lumotive’s presence in Oman, advanced optical and artificial intelligence technologies will be introduced that could support the Sultanate’s efforts to develop smart cities and logistical infrastructure in the future.
Movandi: 5G Semiconductor Leader
A subsidiary of Movandi will be established in Oman with an investment of RO 7.7 million ($20 million). Movandi is a leading provider of 5G semiconductor technology, specializing in RF chipsets, beamforming solutions, and smart antennas. Having a 5G chip company operating locally creates a natural synergy between the infrastructure deployment and the components that power it. Oman’s 5G rollout has been accelerating (Vodafone Oman recently surpassed 1 million 5G subscribers).
The Growing Data Center Market
Oman’s data center market is experiencing significant expansion. A new report published on March 11, 2026 projected the sector to grow from USD 288 million in 2025 to USD 492 million by 2031. This represents a compound annual growth rate (CAGR) of 9.34%, positioning the Sultanate as an increasingly attractive destination for cloud computing, artificial intelligence infrastructure, and digital transformation initiatives aligned with Vision 2040.
The Oman data center ecosystem features a mix of established international players and emerging local providers. Key market participants identified in the report include:
- Equinix: Operates the Muscat MC1 facility and the recently opened Salalah SN1 data center (launched in November 2024 in partnership with Omantel), which serves as a strategic interconnection hub linking Asia, Africa, Europe, and Australia
- Oman Data Park: The leading domestic provider, operating facilities in Knowledge Oasis Muscat and developing a major solar-powered data center in Nizwa
- Ooredoo Oman: Leveraging its telecommunications infrastructure to provide colocation and cloud services
- DATAMOUNT and Cloud Acropolis: Additional colocation providers serving enterprise customers
- Gulf Data Hub: A significant new market entrant planning to add approximately 32 MW of power capacity across two data centers, with development expected to begin within the next 1 to 2 years depending on demand.
While Oman’s AI ecosystem is still evolving compared to global frontrunners, steady progress is underway. Muscat continues to emerge as the hub for AI innovation, supported by telecom leaders like Omantel and academic institutions such as Sultan Qaboos University, both playing a key role in building the foundation for future growth. The initiatives like Open Source Software (OSS) Policy and the strengthening of its foundational digital infrastructure, Oman has already made significant strides in digital government. In addition, it strives to provide seamless, world-class services to all its citizens and residents.
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