Oman Deepens AI Investment to Propel Digital Economy

Oman has allocated approximately OMR60 million towards artificial intelligence initiatives between 2021 and 2024, as part of its strategic drive to position itself as a regional leader in digital innovation. This investment, overseen by the Ministry of Transport, Communications and Information Technology, underscores the sultanate's commitment to integrating AI across various sectors to enhance public service efficiency and stimulate economic growth.
The National Programme for Artificial Intelligence and Advanced Digital Technologies, launched in September 2024, serves as the cornerstone of this initiative. Spanning from 2024 to 2026, the programme encompasses a range of projects aimed at aligning Oman with global advancements in AI. Key components include the establishment of a national open data platform to support entrepreneurs and decision-makers, a national centre for AI research and development to assist academics, and an AI 'studio' designed as a collaborative space for specialists and organizations seeking technological solutions.
A significant aspect of the programme is the development of an Omani language model powered by generative AI, which will be trained on the nation's cultural, historical, artistic, and scientific content. This initiative aims to preserve and promote Omani heritage while fostering technological advancement. Additionally, the programme plans to establish a centre for the Fourth Industrial Revolution in collaboration with the Ministry of Economy and the World Economic Forum, and to implement quantum computing initiatives to enhance research and development in the field.
In alignment with these efforts, the Ministry of Economy launched the 'National Initiative to Empower a National Economy Enhanced by Artificial Intelligence' in June 2024. This initiative, with an earmarked budget of OMR10 million for 2024 projects, seeks to integrate AI applications into development projects and programmes within the economic diversification sectors outlined in the 10th Five Year Plan . The initial phase targets government institutions and governorates, with plans to expand to other sectors subsequently.
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Oman's commitment to ethical AI development is evident through its active participation in regional workshops and collaborations. In July 2024, the sultanate hosted a regional workshop on the Islamic World AI Charter, emphasizing the necessity of drafting legal and ethical frameworks to govern AI applications. The workshop, organized by the Islamic World Educational, Scientific and Cultural Organization in partnership with the University of Technology and Applied Sciences and the Ministry of Transport, Communications and Information Technology, brought together experts and representatives from ICESCO Member States to discuss ethical principles and governance mechanisms for AI.
Furthering its commitment to responsible AI use, Oman held a workshop in October 2024 focusing on the role of AI ethics in education. The event, part of the activities of the ICESCO Chair for Artificial Intelligence Ethics, aimed to explore the potential benefits and risks of AI in educational contexts, identify best practices, and develop clear ethical guidelines for integrating AI into education systems.
Oman's efforts have been recognized internationally, with the sultanate securing the 45th position globally in the 2024 Government AI Readiness Index published by Oxford Insights. This ranking reflects Oman's progress in adopting and integrating AI into government systems and operations, highlighting its commitment to leveraging AI for national development and enhancing digital transformation in line with Vision 2040.
Looking ahead, Oman plans to release a revised national AI policy in the first quarter of 2025. The updated policy aims to establish a comprehensive governance framework for the development and use of AI technologies while safeguarding national interests. It will address key areas such as ethical AI use, data privacy, and the integration of AI across critical sectors, including healthcare, education, and logistics. The policy also focuses on fostering innovation, attracting investment, and building local AI capabilities to position Oman as a regional leader in advanced technologies.
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In a strategic move to bolster its AI capabilities, the Oman Investment Authority , the sultanate's sovereign wealth fund, acquired a stake in xAI, an AI company founded by Elon Musk, in December 2024. This investment aligns with Oman's broader economic diversification goals and its ambition to expand the digital economy's contribution to the Gross Domestic Product from 2 percent to 5 percent by 2030 and 10 percent by 2040.

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