Oman has formally established its first special economic zone dedicated to artificial intelligence, a project expected to attract RO 106 million ($275 million) in investment across three phases. The zone will occupy approximately 104,000 square metres near Muscat International Airport, with construction on Phase 1 slated to begin in the fourth quarter of 2027.
The project, formalised under Royal Decree No 50/2026, operates within Oman's special economic zones law and marks a shift from importing technology to producing and developing it locally. The Public Authority for Special Economic Zones and Free Zones will oversee the zone in coordination with the Ministry of Transport, Communications and Information Technology.
What the zone will contain
The AI zone will include business incubators and accelerators, prototyping and robotics labs, industrial automation hubs, a research and application centre, and a data centre with cloud computing infrastructure. Training and event facilities are also planned, and negotiations are underway with international universities to establish a specialised AI-focused institution.
Dr Siham bint Ahmed al Harthi, Chairperson of Afouq Investment and Development United, the zone's developer and operator, said the company is in discussions with Microsoft and IBM. Afouq is also examining partnerships with local and international investment funds, using incentives available through Oman's special economic zones, which include tax exemptions and 100 per cent foreign ownership.
"The zone aims to serve as a hub for innovation, scientific research, and advanced technology localisation, driving local tech production and integrating AI applications across various economic and service sectors to boost added value and diversify income streams," Dr Al Harthi said.
Targeting startups and GDP growth
The zone's mandate includes scaling Omani startups through advanced programmes, with the stated goal of helping them grow into billion-dollar "unicorn" companies. That ambition supports Oman Vision 2040, which targets raising the digital economy's contribution to GDP to approximately 10 per cent by 2040.
For professionals in AI for Real Estate & Construction, the project signals a pipeline of large-scale infrastructure work beginning in 2027, from data centre construction to specialised lab facilities. The zone's industrial automation and robotics components will also create demand for AI for Operations skills as the facilities come online.
Why this matters for real estate and construction professionals
The 104,000-square-metre development near Muscat International Airport represents a multi-phase construction programme with a defined start date. Contractors, developers, and project managers tracking Gulf region opportunities will need to monitor procurement timelines as Afouq finalises partnerships with technology firms and universities over the next 18 months. The zone's mix of data centres, labs, and training facilities also means the project will require specialised building expertise, not just standard commercial construction capacity.
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