Exceptional Growth of Oman’s Artificial Intelligence Sector
In a clear indicator of the accelerating pace of digital transformation in the Sultanate of Oman, the AI sector recorded exceptional growth in just one year, with the number of companies operating in this field rising from 22 to 42 by the end of August 2026—a growth rate of approximately 91%—reflecting the transformation of future technologies from mere concepts into real business opportunities that contribute to advancing Oman’s digital economy.
Accelerated Growth Reflecting the Maturity of the Digital Ecosystem
Tua bint Abdullah Al-Dawood, Head of the Development and Studies Department at the Ministry of Transport, Communications and Information Technology, announced that the number of Omani companies operating in the AI sector reached 42 by the end of August 2026, compared to 22 companies last year. This 91% growth marks a milestone in Oman’s digital transformation path and confirms growing interest in establishing and developing AI-based businesses in the Sultanate.
Al-Dawood explained that this growth reflects the rapid development of the local ecosystem of AI-specialized companies and the ability of Omani companies to move from the stage of developing ideas and prototypes to delivering technology solutions and products applicable across various sectors. She added that Omani AI startups are playing a growing role in supporting the digital transformation journey by developing innovative technology solutions and products that contribute to raising business efficiency, improving services, automating operations, and leveraging data in decision-making.
From Ideas to Applicable Products
Data from the Ministry of Transport, Communications and Information Technology indicate that Oman’s AI sector is undergoing a qualitative shift from the initial experimentation stage to actual commercial application. Omani companies have been able to develop technology solutions and products applicable across various sectors, contributing to raising operational efficiency and supporting digital transformation in economic and development sectors.
This growth comes within the framework of the National Program for Artificial Intelligence and Advanced Digital Technologies, which aims to digitize key sectors including transport and logistics, tourism, food security, and manufacturing. The program aims to raise the digital economy’s contribution to GDP from about 2% in 2021 to 10% by 2040.
Supporting Indicators: Investments and Infrastructure
This accelerated growth in the number of companies is supported by parallel development in the volume of investments and digital infrastructure. Investments in AI up to 2025 amounted to about 65 million Omani riyals. The second phase of the National Program aims to attract technology investments worth 300 million Omani riyals by 2030.
On the infrastructure front, Otech, the technology arm of Omantel, is expanding its capabilities in cloud computing, data centers, cybersecurity, and AI computing. The company currently manages seven Tier III-certified data centers with a total capacity of 12 megawatts, including facilities in Muscat and Al-Daqm. Otech also supports government AI systems through a national platform developed in cooperation with the Ministry of Transport and Communications, used by about 23,000 government users.
In an important step toward enhancing digital sovereignty, the Ministry launched “Moeen AI” as a national language model, part of efforts to build national AI capabilities that go beyond usage to development and localization.
Examples of Startups in the Sector
The growth in the number of companies reflects the emergence of a new generation of Omani companies that have moved from the prototype stage to actual clients. The seventh cohort of the Omantel Innovation Accelerator includes eight technology startups working in fields including AI, fintech, cybersecurity, health technologies, energy, and logistics.
Prominent among these companies are Algo AI, which offers advanced solutions to improve customer experience through AI-powered voice agents; Artificial Horizon, specialized in facilitating AI adoption through its platform (AI Maestro); and NeoSec AI, which provides advanced cybersecurity solutions with a focus on proactive protection of critical infrastructure.
The Private Sector’s Role in Building the Ecosystem
These developments confirm that Oman’s private sector is gradually transforming from a technology consumer into a producer and innovator. Dr. Amjad bin Amer Al-Dhahli, Vice Chairman of the Digital Economy and AI Committee at the Oman Chamber of Commerce and Industry, notes that the current digital momentum is a key catalyst for moving Omani companies and SMEs from being technology consumers to makers and innovators, enabling entrepreneurs to develop solutions suited to the nature and requirements of the local market.
Prospects for Regional and International Expansion
Omani AI companies have growing opportunities to expand into regional and international markets, because AI-based digital solutions can be scaled and applied beyond national borders. Al-Dawood notes that the participation of Omani companies in regional and international technology events, exhibitions, and programs, and building partnerships with companies and investors, contributes to highlighting Omani capabilities and creating new opportunities for growth and international expansion.
Challenges and the Way Forward
Despite notable growth, Omani AI companies face challenges including the limited size of the local market for achieving economies of scale, early-stage venture financing challenges, and competition in attracting technical talent. The Ministry is also working to strengthen the data and indicators system related to the AI sector, enabling a more comprehensive and accurate measurement of the size and growth of investments in the future.
The biggest challenge remains converting this quantitative growth into tangible economic value, by creating high-value jobs, raising productivity, and enabling Omani youth to participate effectively in building a diversified and sustainable digital economy, in line with the goals of Oman Vision 2040.
Sources
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Oman Newspaper – “Accelerated Growth of Omani Startups in the AI Sector” (September 12, 2026)
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Times of Oman – “91% growth in Omani startups in artificial intelligence sector” (September 12, 2026)
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Muscat Daily – “Oman’s AI companies nearly double in one year” (September 12, 2026)
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AI in Oman – “22 to 42: Oman’s AI Startup Count Jumps 91% in a Year” (September 12, 2026)
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Al-Roya Omani Newspaper – “Al-Shaydhani: Strategic Technological Independence Achieves Digital Sovereignty” (June 19, 2026)
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Oman Newspaper – “How Is the Sultanate of Oman Strengthening Its Digital Sovereignty and Turning Data into Economic Value?” (August 16, 2026)
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ZAWYA – “Oman: Investments worth $169mln in AI sector in 2025” (January 12, 2026)
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ZAWYA – “Oman’s AI race moves from apps to infrastructure” (May 20, 2026)
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Oman News Agency – “Oman Launches Digital Economy Programme” (October 20, 2025)
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Fintechgate – “Omantel Labs Selects 8 Startups in the Seventh Cohort of the Innovation Accelerator” (April 16, 2026)
