Overview
Investment in Oman’s digital sector totals USD 4 billion planned digital infrastructure spend, reflecting both sovereign and private capital deployment. The sector’s GDP contribution of ~3% is targeted to reach 8-10% by 2040, requiring sustained capital inflows across the investment pipeline. Deal flow has accelerated since 2020 with Vision 2040 providing a clear policy framework for investor confidence.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Total Investment | USD 4 billion planned digital infrastructure spend | Growing |
| GDP Contribution | ~3% | 8-10% |
| Key Investors | Omantel, Ooredoo Oman, ITA (Information … | Diversifying |
Analysis
The investment landscape for digital in Oman is shaped by a combination of government-led strategic investments and growing private sector participation. Omantel, Ooredoo Oman, ITA (Information Technology Authority), 4IR Centre, MTCIT represent the core investor base, with increasing interest from international institutional investors and sovereign wealth funds. The Oman Investment Authority (OIA) has prioritised the sector in its portfolio rebalancing strategy. Foreign direct investment is facilitated through free zones, tax incentives, and streamlined licensing processes. However, deal sizes remain modest compared to UAE and Saudi equivalents, suggesting room for growth.
Challenges
Capital mobilisation faces headwinds from 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
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. Green and sustainable financing instruments (sukuk, green bonds) represent an emerging channel for sector investment.
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.