Oman has taken a major step toward advancing its digital economy by establishing an Artificial Intelligence Special Zone in Muscat. The move follows the issuance of Royal Decree No. (50/2026) by Sultan Haitham bin Tarik.
The decree came into force immediately after its publication in the Official Gazette. As a result, authorities can now begin implementing the framework for the new AI-focused zone.
Governance and Development Framework Defined
Under the decree, the Public Authority for Special Economic Zones and Free Zones will oversee the zone’s development. It will appoint an entity responsible for managing, operating, and expanding the ecosystem.
At the same time, the authority will coordinate closely with the Ministry of Transport, Communications and Information Technology. This collaboration ensures alignment with national digital infrastructure and innovation strategies.
Incentives to Attract AI Investments
Importantly, companies operating within the AI Special Zone will receive a range of incentives. These include privileges and exemptions outlined in Royal Decree No. (38/2025), which governs special economic zones and free zones.
Therefore, the initiative is expected to attract both regional and global investors. It also creates a favourable environment for startups and technology firms focused on artificial intelligence.
Strengthening Oman’s Position in Emerging Technologies
The establishment of the AI Special Zone reflects Oman’s broader ambition to diversify its economy and invest in future-ready sectors. Moreover, it signals a clear intent to position the country as a competitive player in advanced technologies.
By offering regulatory support and targeted incentives, Oman aims to accelerate innovation and build a strong AI ecosystem. Consequently, the initiative could drive job creation, technology transfer, and long-term economic growth.
