Overview
The regulatory environment governing Oman’s digital sector has undergone significant reform under Vision 2040. Key legislative changes include the Foreign Capital Investment Law (2019), updated Commercial Companies Law, and sector-specific regulations aimed at improving ease of doing business. Oman’s ranking in the World Bank Doing Business index improved notably, though further regulatory modernisation is needed.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Primary Regulator | Sector ministry | Enhanced governance |
| FDI Framework | Open with conditions | Fully liberalised |
| Licensing Complexity | Moderate | Streamlined |
Analysis
Regulatory reform in the digital sector balances investor attraction with national interest protection. The sector’s regulatory framework is administered by relevant ministries with oversight from the Supreme Council for Planning. Omantel, Ooredoo Oman, ITA (Information Technology Authority), 4IR Centre, MTCIT operate within a licensing regime that has been progressively simplified. The introduction of the Invest Easy portal has reduced business setup time from weeks to days. However, inter-agency coordination remains a bottleneck, with overlapping mandates between sector regulators and cross-cutting bodies like the Environmental Authority and Labour Ministry.
Challenges
Regulatory complexity and enforcement inconsistency remain key concerns. 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. Additionally, the pace of regulation often lags behind technological and market developments, creating uncertainty for first movers.
Opportunities
Regulatory sandboxes, digital permitting platforms, and outcome-based regulation can unlock growth. 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.