Oman Signals Major Tech Ambitions With RO 1.2 Billion Digital Economy Investment

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Oman’s technology sector has seen investments totaling RO 1.2 billion over the past five years, a clear signal of the Sultanate’s strategic push to diversify its economy and establish itself as a regional digital hub. The announcement was made by the Ministry of Transport, Communications and Information Technology, which highlighted that a remarkable 70% of these investments originated from direct foreign investment (FDI), underscoring growing global confidence in Oman’s digital future.

Accelerating Government Digital Transformation

A cornerstone of the nation’s strategy has been a massive overhaul of public services. According to Eng Said bin Hamoud al Maawali, Minister of Transport, Communications and Information Technology, the government’s digital transformation programme performance surged from 73% at the end of 2024 to 94% by the close of 2025.

This progress is tangible, with 2,277 core government services and automated permits now fully digitised. The effort has led to a significant 25% reduction in the need for in-person visits to government offices. Key initiatives driving this change include the Unified National Portal for Government Services, the ‘Thiqah’ digital identity app for secure e-services access, and the ‘Tajaob’ platform for public feedback and complaints.

Cultivating a Thriving Startup Ecosystem

To fuel a vibrant tech landscape, Oman is heavily investing in local talent and startups. The Omanisation rate in the ICT sector climbed to 45.5% in 2025, with specialised and leadership roles reaching 69%. Initiatives like the Makeen programme have trained over 11,000 graduates and jobseekers for the digital economy.

The Ministry has also launched the Oman Startup Hub, a central digital platform connecting startups with investors, incubators, and accelerators. To date, the hub has registered over 200 technology startups, 48 support entities, and tracked more than RO 127 million in available funding, creating a structured ecosystem for growth.

New Frontiers in Semiconductors and Space

Oman is setting its sights on high-tech, future-focused industries. The Ministry announced the launch of a National Semiconductor Programme to integrate the Sultanate into global value chains. This includes a five-year talent development roadmap and a Semiconductor Centre of Excellence to support R&D and advanced manufacturing. The country has already hosted the Global Semiconductor and Electronic Chips Executive Summit twice, attracting CEOs from leading international firms.

The space sector is also gaining momentum, with 25 companies now operating in the field. In 2025, an agreement was signed to design, manufacture, and launch an Omani satellite, reducing reliance on external capacities. To foster innovation, the Ministry has launched the Oman Space Accelerator, targeting 10 local startups in the sector.

About Oman’s Digital Economy Initiatives

Led by the Ministry of Transport, Communications and Information Technology, Oman’s digital economy initiatives represent a comprehensive national strategy to position the Sultanate as a competitive technology and innovation hub. The strategy focuses on advancing digital transformation across government and society, building a robust startup ecosystem through targeted support and funding platforms, and developing national capabilities in frontier industries such as semiconductors, artificial intelligence, and space technology.

Source: Oman Observer

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