Overview
Vision 2040, Oman’s long-term development plan, calls for the enhancement of national technical capabilities, the construction of vital ICT infrastructure, and the improvement of e-government services. The government has prioritized the development of ICT and the sector is well positioned for growth in the years ahead. Several U.S. firms are at the forefront of ICT development in Oman.
The Ministry of Transport, Communications, and Information Technology (MTCIT) oversees national IT infrastructure projects and e-government initiatives. The Telecommunications Regulatory Authority provides considerable oversight and policy guidance, most notably in the deployment of Oman’s 5G networks. The Oman Technology Fund has invested in local companies that developed online auction, marketplace, and teaching platforms.
Omantel and Ooredoo are Oman’s two main telecommunications providers. A third operator, Vodafone, entered the market in 2022. Oman’s price-sensitive market has increased the appeal of low-cost options from untrusted vendors, but telecommunications providers have demonstrated interest in diversifying their 5G commercial partnerships.
Oman is building the ICT infrastructure to reduce the digital divide through its National Broadband Strategy, which envisions providing high-speed broadband service to 95 percent of the population by 2024.
Leading Sub-Sectors
E-government services, smart city initiatives, cybersecurity solutions, drones and anti-drone systems, data management/centers, disaster recovery services, expansion of broadband infrastructure, e-commerce, blockchain/AI/IoT solutions, Fintech, space technologies, and training and development.
Opportunities
Training and workforce development: Oman has expressed aspirations to develop a center of excellence with a specific focus on SME mentoring and support and is seeking to form partnerships with global technology organizations.
E-government services: The MTCIT manages the government network and cloud and is heading efforts to increase e-government services. In 2022, MTCIT launched a digital transformation program with an estimated investment of $442 million to improve government e-services and digital infrastructure.
Data centers: In line with the Digital Oman Strategy, businesses are increasingly migrating toward cloud computing, creating commercial opportunities to establish data centers. Oman Data Park is an example of a joint venture between the government-owned telecommunications company Omantel and another private sector company. Growth in e-commerce is increasing the demand for cloud services and data centers, along with collaboration between the government and private sectors in these areas. In December 2022, MTCIT signed a MoU with Amazon Web Services to launch joint cloud data service centers.
Disaster recovery services: Oman anticipates investments of around RO 25 million (approximately $65 million) from the government and private sectors in establishing itself as a full-fledged hub for disaster recovery services. The Omani government identified disaster recovery services as a targeted sector for development.
Cybersecurity: Oman aspires to build a cybersecurity industry, focusing on managed security services, cybercrime analysis, security incident management, and consultancy. Oman’s first cyber-security center facility is a part of the Oman National Computer Emergency Readiness Team, a task force that safeguards government institutions from cyber risks.
Blockchain/AI/IoT: The SaS Center for Entrepreneurship Center under MTCIT is overseeing a smart cities project to launch initiatives in the Internet of Things (IoT), artificial intelligence, and blockchain. Omantel is providing smart cities project implementation and ICT solutions including blockchain technology and smart cloud call center services to government customers. Sultan Qaboos University opened an IoT laboratory and a communication and information research center to implement projects such as smart streets and a remote healthcare system for monitoring and diagnosis. Oman announced its intention to allocate an artificial intelligence zone area in Duqm for research and experiments.
Cryptocurrency: Oman’s central bank is developing its own digital currency and open banking services. In January 2022, Oman’s financial regulator, the Capital Markets Authority, invited bids from companies to help set up a regulatory framework for virtual assets, and in July 2023, the Capital Market Authority sought public comments on its proposed regulatory framework governing digital assets. Oman has also expressed interest in building capabilities to set up cryptocurrency data mining centers. In August 2023, Oman partnered with Abu Dhabi company Phoenix Group to create a 150-megawatt cryptocurrency-mining farm and the country will open a $370 million facility run by Exahertz International to start cryptocurrency mining by October 2023.
Fintech: Digital payment solutions are growing rapidly, fueling the growth of the fintech sector in Oman. The Central Bank launched its Fintech Regulatory Sandbox Framework in 2020 as a closed testing environment for fintech companies to prove their viability. The Central Bank of Oman (CBO) issued in September 2023 guidelines for banks and payment service providers to offer a card tokenization service allowing customers to register payment cards and applications like Apple Pay and Samsung Pay in Oman.
Space technologies: Oman’s space ambitions were set back in January 2023 when Virgin Orbit’s attempt to put Oman’s first satellite into orbit failed. Following that, Oman announced that it would construct a space rocket launch center in Duqm. The Omani government established Space Communications Technology as a wholly government-owned entity with the mandate to develop and implement Oman’s maiden satellite communications project. A long-term National Space Policy issued by MTCIT identifies 14 projects and investment opportunities: space cloud partnership, satellite ground station hub, direct receiving station, national space data platform, end user applications booster program, center of excellence for space applications, CubeSat project, space accelerator, national space observatory, world space conference, satellite R&D program, national Satcom initiative, regional satellite-based augmentation system, and launch site partnership.
Resources
Ministry of Transport, Communications and Information Technology