Market Overview
Oman’s digital economy is undergoing rapid transformation, driven by the national Digital Transformation Strategy and Vision 2040’s emphasis on a knowledge-based economy. The ICT sector contributed approximately 3.2% of GDP in 2024, with government targets aiming for 5% by 2030. Key growth areas include cloud computing, cybersecurity, fintech, and e-government services.
The Sultanate has invested heavily in telecommunications infrastructure, with 5G rollout accelerating across urban centres. Omantel and Ooredoo continue to expand fibre-optic networks, while the government’s Open Data initiative creates new opportunities for data analytics firms.
Opportunity Assessment
The digital economy presents compelling entry points for foreign investors. Demand for cloud services is growing at 28% annually, while e-commerce penetration remains below 8%, suggesting significant runway. The government’s commitment to digital identity, smart city projects in Muscat and Duqm, and the creation of dedicated technology free zones provide structural tailwinds.
| Metric | Value |
|---|---|
| Sector GDP contribution | 3.2% (2024) |
| Annual growth rate | 12-15% |
| E-commerce market size | OMR 1.2 billion |
| Cloud adoption rate | 28% CAGR |
| 5G population coverage | 65% (2025 target) |
| Foreign ownership allowed | Up to 100% in free zones |
Risk Factors
Key risks include talent scarcity in specialised technology roles, regulatory uncertainty around data localisation requirements, and competition from established regional hubs in the UAE and Saudi Arabia. Currency peg stability to the US dollar mitigates foreign exchange risk.
Entry Strategy
Investors should consider establishing operations within the Knowledge Oasis Muscat (KOM) or the Salalah Free Zone, both of which offer preferential tax treatment and streamlined licensing. Joint ventures with Omani technology firms provide local market access and regulatory navigation.
Vision 2040 Alignment
This sector directly supports Vision 2040 Pillar 3 (National Economy and Fiscal Sustainability) and Pillar 5 (Economic Diversification). The government has allocated OMR 200 million in digital infrastructure investment through 2030, creating a robust policy framework for sustained growth.