Saturday, November 08, 2025

Oman News

Oman sets digital economy target at 10% of GDP as first phase nears completion

The National Digital Economy Program aims to raise the contribution of the digital economy to 10 per cent of GDP by 2040, with an interim goal of about 3 per cent by end-of-this-year.

TAS News Service

info@thearabianstories.com

Saturday, November 8, 2025

Muscat: His Excellency Dr. Ali bin Amer Al-Shidhani, Undersecretary of the Ministry of Transport, Communications and Information Technology for Communications and Information Technology, announced that the program, structured around three main pillars, digital government, business digitization, and digital society, is already showing measurable progress. By the end of this year, the digital economy’s contribution to Oman’s GDP is expected to reach nearly 3%.

Dr. Al-Shidhani emphasized that the program serves as a long-term roadmap aligned with Oman Vision 2040 and unfolds across four stages: building an integrated digital government, digitizing key economic sectors, exporting digital services, and achieving a thriving digital economy. The first phase, focused on government digital transformation, includes eight executive programs, among them a dedicated artificial intelligence (AI) program.

Since its launch four years ago, Oman has climbed the ranks in several global indices: 45th in the Government AI Readiness Index, 41st in the E-Government Development Index, 1st globally in the Cybersecurity Readiness Index, and 50th in the Network Readiness Index. The Sultanate aims to reach the top 20 in all these benchmarks by 2040.

Dr. Al-Shidhani further highlighted the National Program for Artificial Intelligence and Advanced Digital Technologies, launched in 2023, which encompasses 32 projects across government bodies. The program targets enhanced AI readiness, growth of tech startups, and expanded research output in emerging technologies. Initiatives such as the “Moeen AI” Omani language model for government use, the AI Studio, the AI Engineering initiative, and the National Open Data Portal, now hosting datasets from over 40 government entities, mark significant progress.

In addition, Oman established the Artificial Intelligence Economics Initiative with an allocation of RO 10 million in its first year and RO 15 million in the next for AI projects. Collaborative efforts have also led to the creation of the Green Artificial Intelligence Alliance, a coalition of 34 entities spanning AI, energy, and investment sectors, to advance sustainable AI projects nationwide.

Further cementing its digital ambitions, Oman inaugurated a Center for the Fourth Industrial Revolution in partnership with the World Economic Forum and announced a dedicated AI zone near Muscat International Airport to attract regional technology companies through a package of special incentives.

Dr. Al-Shidhani noted that academic collaboration is also key, with initiatives such as the ISESCO Research Chair for AI Ethics at the University of Technology and Applied Sciences and joint research programs with the Ministry of Higher Education, Research and Innovation. Among the upcoming flagship projects is the Oman Digital Triangle, a trio of technologically equipped, regulation-ready hubs designed to host AI data centers powered by sustainable green energy.

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