Definition
A knowledge economy is one in which growth and competitiveness are driven primarily by the production, distribution, and application of knowledge and information rather than by natural resources or manual labour alone. Its pillars include a highly educated workforce, robust research and innovation ecosystems, modern information infrastructure, and institutional frameworks that encourage entrepreneurship and intellectual-property protection. Countries that successfully transition to knowledge economies tend to achieve higher productivity, greater resilience to commodity shocks, and more inclusive prosperity.
Context in Oman
Oman is investing heavily in education and research to build a knowledge-based economy. Sultan Qaboos University, the Oman Research Council, and The Research Council fund applied research in energy, health, and the environment. The Innovation Park Muscat at Al Ateeba provides incubation, co-working, and venture support for technology start-ups. Oman’s higher-education system includes 34 private universities and colleges alongside public institutions, and the government offers thousands of scholarships for study abroad annually. National coding and AI literacy campaigns target school-age youth.
Connection to Vision 2040
Vision 2040 explicitly aspires to transform Oman into a knowledge-based, innovation-driven economy. It sets targets for research-and-development spending as a percentage of GDP, patent registrations, and the share of knowledge workers in the labour force. Education reform emphasises STEM disciplines, critical thinking, and entrepreneurship. The strategy links knowledge-economy development to economic diversification, arguing that high-value industries in technology, professional services, and creative sectors will replace oil as the primary engines of growth.
Key Facts
Oman aims to increase R&D spending to at least one percent of GDP by 2040. Innovation Park Muscat has incubated over 100 start-ups since its founding. Sultan Qaboos University is ranked among the top universities in the Arab world. Over 10,000 Omani students receive government scholarships for overseas study each year. The National Innovation Strategy was launched in 2023 to coordinate knowledge-economy initiatives across ministries.