Overview
Oman’s digital economy contributes approximately 3 percent of GDP, led by Omantel (the incumbent telco) and Ooredoo Oman. The 5G rollout began in 2021 with coverage expanding across Muscat and key industrial zones. The Fourth Industrial Revolution (4IR) Centre was inaugurated in 2024 to accelerate AI, IoT, and blockchain adoption. Vision 2040 targets raising the digital economy to 8-10 percent of GDP.
The value chain for Oman’s digital sector encompasses upstream inputs, midstream processing and logistics, and downstream distribution and export channels. Mapping this chain reveals critical nodes where value addition can be maximised and leakage to imports can be reduced.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| GDP Contribution | ~3% | 8-10% by 2040 |
| 5G Coverage | ~30% (urban) | 95%+ by 2040 |
| ICT Workforce | ~12,000 | 100,000+ by 2040 |
| Omanisation Rate | ~78% | 85%+ by 2040 |
| Tech Startups | ~120 | 500+ by 2040 |
Analysis
The digital value chain in Oman is characterised by significant upstream concentration, with Omantel, Ooredoo Oman, ITA (Information Technology Authority), 4IR Centre, MTCIT dominating primary production. Midstream processing and logistics represent the largest opportunity for value capture, as much of the raw output is currently exported with minimal transformation. Investment of USD 4 billion planned digital infrastructure spend signals strong commitment to building out downstream capacity. The sector employs ~12,000 direct in ICT workers, though value-chain deepening could multiply employment effects significantly.
Challenges
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.
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.