Overview
Physical infrastructure underpinning Oman’s digital sector spans transport networks, utilities, industrial zones, and specialised facilities. The government has committed significant capital to infrastructure development, with the national infrastructure pipeline valued at over USD 50 billion across all sectors. For digital specifically, infrastructure investment of USD 4 billion planned digital infrastructure spend targets capacity expansion, connectivity improvement, and modernisation of existing assets.
Key Indicators
| Infrastructure Element | Current Status | 2040 Plan |
|---|---|---|
| GDP Contribution | ~3% | 8-10% by 2040 |
| 5G Coverage | ~30% (urban) | 95%+ by 2040 |
| ICT Workforce | ~12,000 | 100,000+ by 2040 |
Analysis
Infrastructure quality and availability significantly determine the competitiveness of Oman’s digital sector. The Sultanate’s geographic advantages (3,165 km coastline, strategic location between Asia and Africa) are leveraged through purpose-built infrastructure. Omantel, Ooredoo Oman, ITA (Information Technology Authority), 4IR Centre, MTCIT benefit from dedicated industrial zones, port access, and utility connections. However, infrastructure gaps persist in secondary cities and remote governorates, creating geographic disparities in sector development. The Oman Rail project (2,200 km) and road expansion programmes will enhance connectivity, while digital infrastructure (5G, fibre) enables technology-intensive operations.
Challenges
Infrastructure financing gaps, construction delays, maintenance backlogs, and geographic dispersion increase costs. Brain drain of tech talent to UAE, limited venture capital for startups, cybersecurity readiness gaps, digital literacy disparities outside Muscat, and slow enterprise cloud adoption.
Opportunities
PPP models for infrastructure delivery, modular construction approaches, smart infrastructure integration, and cross-sector infrastructure sharing reduce costs and improve utilisation. Government-as-a-platform digital services, smart city projects (Madinat Al Irfan), AI-driven oil field optimisation, cybersecurity services for GCC, edtech and healthtech verticals, and data centre expansion leveraging submarine cable connectivity.
Vision 2040 Targets
Raise digital GDP share to 8-10 percent; achieve 95 percent 5G population coverage; train 100,000 digital professionals; launch 500+ tech startups; position Oman as a GCC cybersecurity hub.