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Oman enters Gulf AI race with new special economic zone in Muscat

Oman will create an AI-focused special economic zone in Muscat governorate.

Haitham AL-SHUKAIRI / AFP via Getty Images
This aerial photo shows a view of the Mutrah Corniche in Muscat on Feb. 4, 2026. — Haitham AL-SHUKAIRI / AFP via Getty Images

Omani Sultan Haitham bin Tariq issued a royal decree on Thursday establishing a special economic zone for artificial intelligence in Muscat governorate as the sultanate seeks to attract global tech talent and strengthen its position in the rapidly expanding sector.

Under the decree, the Public Authority for Special Economic Zones and Free Zones will appoint an entity to manage, operate and develop the zone in coordination with the Ministry of Transport, Communications and Information Technology.

Why it matters: The move marks a significant step in Oman’s push to scale its AI sector as it seeks to catch up with regional peers such as Saudi Arabia and the United Arab Emirates.

According to Omani Minister of Transport, Communications and IT Saeed bin Hamoud bin Saeed al Maawali, the country's total AI investment last year was 65 million Omani riyals ($169 million), a modest figure compared with the multi-billion-dollar commitments seen in Saudi Arabia and the UAE. 

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