In a significant move to bolster its digital economy, Oman’s Sultan Haitham bin Tarik has issued Royal Decree No. 50/2026, establishing a dedicated Artificial Intelligence Special Zone in Muscat. The zone is designed to attract global AI companies and investment through a package of incentives, privileges, and exemptions. The Public Authority for Special Economic Zones and Free Zones (OPAZ) will oversee the zone, appointing a management partner in coordination with the Ministry of Transport, Communications and Information Technology.
Quick Facts
- New AI special economic zone established in Muscat.
- Aims for 10% digital economy contribution to GDP by 2040.
- Targets foreign AI companies and institutional investors.
A Strategic Push Beyond Policy
The royal decree marks a concrete step for Oman, moving its AI ambitions from policy papers to physical infrastructure. By creating a dedicated economic zone, the Sultanate is sending a clear signal that it is actively courting foreign AI firms and capital. Unlike some of its neighbors, Oman has historically been more selective in creating new zones that permit foreign ownership, making this AI-focused initiative particularly notable. The new zone will operate under the Law of Special Economic Zones and Free Zones, providing a streamlined legal framework for companies setting up operations.
Fueling Oman’s Vision 2040
This initiative is a core component of Oman’s National AI Strategy, which underpins the broader Oman Vision 2040. The country aims to dramatically increase its digital economy’s contribution to national GDP, targeting a rise to 10% by 2040 from just 2% in 2021. The government anticipates that AI adoption will drive significant gains across key sectors, including transportation, logistics, tourism, food security, and manufacturing. The decree is expected to accelerate external investment to complement existing government spending.
Building on Existing Momentum
The new zone builds on a foundation of recent AI development within the Sultanate. Between 2021 and 2024, Oman’s AI sector saw investments totaling RO 60 million ($156 million), with RO 15 million ($39 million) specifically allocated for AI projects in 2024 alone. The national AI program has already delivered tangible results, including training for over 1,300 people and the launch of OmanGPT, an Omani large language model trained on local data. AI pilot projects are already active in the public sector, with applications in facial recognition, air quality monitoring, smart urban planning, and drone surveying.
About Oman’s National AI Strategy
Oman’s National AI Strategy is a key pillar of its Vision 2040 economic plan. Its primary objectives include accelerating AI adoption across vital economic sectors, localizing advanced digital technologies, and establishing a sovereign, human-centered governance framework for artificial intelligence.
Source: Middle East AI News
