Oman is making a strategic push into the global technology supply chain, with the Ministry of Transport, Communications and Information Technology announcing a $30 million investment opportunity to establish a new semiconductor design company in Muscat. The project aims to become a cornerstone of the Sultanate’s digital economy, with projections to create between 30 and 100 direct high-skilled jobs within its first two years of operation.
A Strategic Imperative for a Digital Future
The Omani government views the development of a local semiconductor industry not as an option, but as a strategic necessity. Khulood al Hadhrami, a Senior Technology Investment Specialist at the Ministry, highlighted the critical role these components play in powering modern technology. She emphasized the industry’s deep integration with key growth sectors including computing, healthcare, transportation, energy, and artificial intelligence, stating that “AI would not be able to process massive volumes of data without semiconductors.” This initiative positions Oman to secure its role in the foundational layer of the world’s rapidly advancing digital infrastructure.
Tapping a Trillion-Dollar Market
The move is timed to capitalize on significant global market growth, with forecasts projecting worldwide semiconductor sales to reach $1 trillion by 2030. To capture a share of this expanding market, the Ministry is actively collaborating with partners across government and the private sector. The strategy focuses on attracting foreign investment and expertise while simultaneously nurturing local talent through partnerships with international universities and leading technology firms to ensure a skilled workforce is ready to support the sector’s growth.
Building on Existing Momentum
This new investment opportunity builds upon a foundation that has already been laid in the Sultanate. Al Hadhrami revealed that one semiconductor design company is already operational in Oman and has successfully employed over 100 Omani specialists in the field. This existing firm has also secured several strategic partnerships with prominent international companies, demonstrating the viability and potential of Oman as a hub for this specialized industry. While acknowledging that entering the sector requires significant resources and long-term commitment, this early success provides a strong proof of concept for future investors.
About the Ministry of Transport, Communications and Information Technology
Oman’s Ministry of Transport, Communications and Information Technology is the government body responsible for developing the Sultanate’s policies and infrastructure across the transport, logistics, and ICT sectors. The Ministry leads national digital transformation strategies, aiming to build a diversified, knowledge-based economy by fostering innovation, attracting investment, and developing local talent in key technological fields like artificial intelligence and semiconductors.
Source: Zawya
