Oman’s Sultan decrees AI special economic zone for Muscat
Royal decree to establish dedicated zone with incentives for AI investment
#Oman #economy – His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. 50/2026 establishing an Artificial Intelligence Special Zone in the Governorate of Muscat, creating a dedicated economic zone with incentives, privileges, and exemptions designed to attract AI investment and enterprise. The Public Authority for Special Economic Zones and Free Zones (OPAZ) will appoint a management and development partner for the zone, in coordination with the Ministry of Transport, Communications and Information Technology. The decree builds on Oman’s National Artificial Intelligence Strategy, a core pillar of Oman Vision 2040, which targets digital economy growth to 10 percent of national GDP by 2040, up from 2 percent in 2021.
SO WHAT? – A royal decree establishing a dedicated AI economic zone is a more concrete commitment than a policy announcement. Oman has been far more cautious about creating new zones permitting foreign ownership than the neighbouring UAE and has been careful in selecting applicable economic activities. For this reason, some business specialisations are much easier to set-up in the Sultanate than other. The announcement that Oman will create a dedicated economic zone for AI is a clear signal that the country is actively trying to encourage foreign AI companies and investors to enter the local market.
His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. 50/2026 establishing an Artificial Intelligence Special Zone in the Governorate of Muscat, on a land area demarcated in the decree’s attached layout. Details of the land area will be published by the government next week. Projects established within the zone will be granted incentives, privileges, and exemptions under the Law of Special Economic Zones and Free Zones.
The Public Authority for Special Economic Zones and Free Zones will appoint the party responsible for managing, operating, and developing the zone, working in coordination with the Ministry of Transport, Communications and Information Technology. The decree takes effect from the day following its publication in the Official Gazette.
The zone directly supports Oman’s National AI Strategy, which targets AI adoption across key economic sectors, localisation of advanced digital technologies, and establishment of a sovereign, human-centred AI governance framework.
Oman’s digital economy contribution stood at just 2% of GDP in 2021. The national AI programme targets a rise to 10% by 2040, with AI-driven gains expected across transportation, logistics, tourism, food security, and manufacturing.
Oman ranks in 66th place in the Oxford Insights Government AI Readiness Index.
The national AI programme has already delivered tangible outputs, including training for more than 1,300 people, the launch of OmanGPT (an Omani large language model trained on local cultural, historical, and scientific content) and an AI Studio serving as a hub for specialists and technology companies.
AI pilots are already running across public-sector applications, including facial recognition, air quality monitoring, agricultural census, smart urban planning, drone surveying, and fish-farming and construction systems, moving beyond policy into operational deployment.
Total AI sector investment in Oman reached RO 60 million ($156m) between 2021 and 2024, with RO 15 million ($39m) allocated specifically for AI projects in 2024. The establishment of a dedicated economic zone is expected to accelerate external investment alongside domestic government spending.
LINKS
View the Royal Decree 50/2026 (Decree.om)
Read more about Oman’s AI and technology market:
Middle East CEOs lead globally in AI adoption (Middle East AI News)
Oman, Egypt partners announced $265 million AI zone (Middle East AI News)
PIF-backed Elm opens Oman office (Middle East AI News)
Sampo AI raises $750K in Oman’s largest pre-seed round (Middle East AI News)