Strong Growth in Investment, Digital Services, and Infrastructure
Year: 2026
Enhancing Investment and Economic Diversification
The transport, logistics, communications, and information technology sectors have made a significant contribution to achieving the objectives of Oman Vision 2040 in enhancing investment, financial sustainability, private sector development, and economic diversification. Investment in the logistics sector during the Tenth Five-Year Plan increased to approximately OMR 3.4 billion. The Ministry also succeeded in attracting investments in the communications and information technology sector amounting to approximately OMR 1.2 billion in 2025, including around OMR 65 million in artificial intelligence investments.
Revenue growth in 2025 reached approximately 17.4% in the ports sector, 9.4% in the maritime affairs sector, and 18% in the land transport sector.
The total value of road projects currently being implemented by the Ministry amounts to approximately OMR 1.2 billion. The most prominent projects include Sultan Faisal bin Turki Road (Dibba–Lima–Khasab), Sultan Said bin Taimur Road (Adam–Haima–Thumrait), the paving of the Harweeb–Al Mazunah–Maiten Road, the paving of roads in Wilayat Muqshin, the completion of Sultan Turki bin Said Road (the Eastern Expressway), the completion of Sultan Taimur bin Faisal Road (the Al Batinah Coastal Road), and the dualization of the Izki–Firq Road. Implementation has also commenced for the development of Al Mouj Street and 18 November Street. These road projects contribute to enhancing economic growth by improving connectivity between cities, ports, and production areas, increasing transport efficiency, and reducing the time and cost of commercial movement. They also support economic diversification by stimulating multiple sectors, attracting investments, creating employment opportunities, supporting small and medium enterprises, and enhancing the competitiveness of local products in line with sustainable development.
Growth in the logistics sector was achieved through progress in performance indicators across several related areas. Omani ports recorded an increase in cargo handled during 2025, with more than 143 million tonnes handled compared to 137 million tonnes during the same period in 2024. Container handling also witnessed notable growth, with more than 5.1 million TEUs handled in 2025 compared to 4.2 million TEUs during the same period in 2024. In addition, Omani ports received more than 13,000 units compared to more than 12,000 units during the same period in 2024. Indicators also recorded the arrival of more than 60 cruise ships carrying over 200,000 passengers during 2025.
Investment agreements signed by the Ministry during the Tenth Five-Year Plan in the ports sector contributed to enhancing operational efficiency and productivity. Cargo handling volumes at Shinas Port increased by 689.3% compared to 2024, while general cargo handling at Salalah Port rose by 16.7% in 2025 compared to 2024. These agreements also contributed to attracting foreign investments. At Shinas Port, an agreement was signed for the establishment of a low-sulphur marine fuel refinery and fuel storage tanks. The launch of a new maritime ferry line connecting Shinas Port with Bandar Abbas Port in the Islamic Republic of Iran was also announced. In addition, the construction of asphalt (bitumen) storage tanks at Shinas Port commenced with a storage capacity of 30,000 tonnes per year.
These agreements also contributed to enhancing local content, with Omanization reaching 100% at Khasab and Shinas Ports, and the assignment of certain maritime services and engineering works to small and medium enterprises.
In 2026, the Ministry aims to sign a number of concession agreements, most notably a concession agreement for the management, operation, and development of Shinas Port, and a concession agreement for investment in ship cutting and recycling using green technologies.
International Indicators
In 2025, the Sultanate of Oman advanced in several digital economy indicators. Oman ranked 41st globally in the E-Government Development Index, 50th globally in the Network Readiness Index, and achieved Tier One (out of five tiers) in the Global Cybersecurity Index.
Oman also recorded progress in the E-Government Services Maturity Index 2024 issued by the United Nations Economic and Social Commission for Western Asia (ESCWA), achieving an improvement of 6%. The Sultanate advanced by 25 positions to rank first in the Arab world and 50th globally in the Universal Postal Union Postal Development Index 2025. Oman also ranked first in West Asia and ninth globally in the field of open data for 2024.
Digital Transformation
Government digital transformation witnessed a notable qualitative leap, with the overall performance of the Digital Transformation Program increasing from 73% by the end of 2024 to 94% by the end of 2025. The average performance of government entities in digital transformation reached 85% in 2025, compared to 77% in 2024. Procedures for all priority government services approved under the general program, totaling 2,869 services, were simplified. By the end of 2025, 2,277 essential services and automatic permits were digitized, compared to 1,700 by the end of 2024.
The Ministry launched the Unified National Government Services Portal, which brings together various government services under a single digital umbrella, facilitating flexible and efficient access for citizens and residents. The portal currently offers approximately 36 digital services. The Ministry also launched the “Thiqa” application as an advanced mobile-based digital identity that enables access to electronic services and electronic document signing without the need for physical attendance, enhancing trust and security in digital transactions and paving the way for a more integrated and reliable digital environment. In addition, the Ministry launched the national “Tajaawob” platform to receive suggestions, complaints, and reports, aiming to enhance community participation in improving government services and increasing response efficiency, reflecting a shift toward a participatory digital government that listens and interacts with citizens in real time.
The Ministry also launched the Irtiqaa Program, which aims to empower national competencies within government entities through specialized training in digital project management, change management, and data analysis, contributing to building a government apparatus capable of adopting innovation and sustaining digital transformation.
Enhancing Local Content
The Ministry achieved steady growth in supporting and enhancing local content during 2025. The total value of projects awarded to Omani small and medium enterprises exceeded OMR 113 million. The contribution of locally manufactured goods in the Ministry’s projects exceeded OMR 28 million. The value of subcontracted services awarded to Omani SMEs for executed works exceeded OMR 10 million during 2025.
Labour Market and Employment
The Ministry’s policies played an important role in improving Omanization rates in the transport and logistics and information technology sectors. Omanization in the transport and logistics sector reached 21.6% compared to 20% in 2024. A total of 1,437 Omanis were appointed to specialized positions within companies executing road construction and maintenance projects supervised by the Ministry, contributing to increased Omanization in the construction sector. In the information technology sector, Omanization reached 45.5% in 2025 compared to 38% in 2024. The proportion of Omanis in technical, specialized, and leadership roles in the transport and logistics sector rose to approximately 59% in 2025 compared to 52% at the end of 2024. In the information technology sector, the percentage rose to approximately 69% in 2025 compared to 63% in 2024.
The Ministry is working to increase the employment of Omanis in the logistics sector through various employment initiatives, including training linked to employment programs targeting Omani youth for technical and specialized roles related to supply chains, transport, and logistics services. In support of women empowerment initiatives, 90 new female taxis were registered under the Women Taxi Initiative, enhancing Omani women’s participation in the transport and logistics sector. The Ministry is also coordinating with government entities and the private sector to regulate express delivery activities to become a clear, scalable economic activity that provides organized employment opportunities for citizens.
The Ministry continues to implement initiatives to support Omani employment in information technology professions, including the “Makeen” initiative, through which more than 11,000 graduates and job seekers have been trained since its launch, including 2,032 beneficiaries in 2025. In addition, 21 activities in the communications and information technology sector were approved for freelance work. The Ministry is also developing a framework to stimulate local content in the ICT sector to enhance sustainable employment. In addition, the Ministry launched the Master’s Program in Digital Transformation and Innovation in cooperation with the University of Technology and Applied Sciences, as the first specialized academic program of its kind in the Sultanate.
The Ministry also supports technology startups through various initiatives and projects to accelerate their growth and expansion in local and regional markets. It established the Oman Startup Hub platform (omanstartuphub.om), which serves as a digital gateway for the startup ecosystem in Oman and enables startups to connect with supporting entities, investors, and advisors. More than 200 startups, 48 incubators and accelerators, and funding exceeding OMR 127 million have been registered.
Governorate Development and Sustainable Cities
The Ministry played a key role in achieving one of the main pillars of Oman Vision 2040 related to governorate development and sustainable cities through the implementation of road projects across various governorates. These projects contributed to infrastructure development, improved road network efficiency, enhanced road safety, and strengthened connectivity between wilayats and governorates, facilitating the movement of individuals and commercial goods, supporting urban growth, commercial activities, and comprehensive economic and social development. The total length of roads under implementation in 2026 amounts to approximately 1,798 kilometres, contributing to infrastructure development and integration among governorates.
Roads Expected to Open in 2026
Several vital projects are expected to be inaugurated in 2026, including the dualization of Al Farooq Road in Dhofar Governorate, the paving of roads in Wilayat Muqshin, Sultan Turki bin Said Road linking Al Kamil and Al Wafi with Sur in South Al Sharqiyah Governorate, Aqabat Wadi Bani Khalid Road, the paving of the Harweeb–Al Mazunah–Maiten Road, the construction of Al Mughsail Bridge, and the paving of the Seih Al Khairat–Al Shisr Road in Dhofar Governorate.
Carbon Net Zero
In 2025, the Ministry made distinguished efforts toward achieving Oman’s Net Zero 2050 targets. The Ministry implemented pioneering projects, most notably the operation of the first hydrogen production, supply, and distribution station in the Sultanate of Oman in partnership with Shell Oman, marking the first such station in the Middle East. In addition, the first 15 light hydrogen vehicles powered by green hydrogen were deployed. To enhance sustainable maritime transport, a concession agreement was signed to establish a green ship recycling facility in the Khatmat Milaha area. The Shore Power project was implemented at Sohar Port to supply vessels with electrical power while berthed, reducing emissions from ship engines during port stays. The Ministry also signed a memorandum of understanding to establish the first integrated green methanol production facility in the Sultanate of Oman with a private sector consortium to support emissions reduction in maritime shipping. The total investment value of new green-energy projects reached OMR 230 million, with ship recycling capacity expected to reach up to 70 ships.
Significant progress was also made in electric vehicle infrastructure, with approximately 160 public and private EV chargers installed and operational across the Sultanate by 2025. The Ministry aims to install 350 charging points by 2027. The number of electric vehicles reached approximately 3,000. The Ministry also launched the national public EV charger application “Shahin” in 2025.
Maritime and Land Transport Permits and Transactions
During 2025, the Ministry issued more than 370 maritime permits for foreign vessels operating in Omani territorial waters. Registrations of more than 2,400 vessels and marine units were renewed. More than 1,920 seafarer certificates were issued, and more than 1,540 maritime activity licenses were granted.
In land transport, more than 326,000 electronic transactions were completed through the Ministry’s “Naql” platform during 2025, with processing times of less than two minutes from application submission. The total number of licenses issued via the platform exceeded 290,000. The number of users of regular bus transport exceeded 5 million passengers. The “Naql” platform currently offers 16 electronic services in the land transport sector, including taxi licensing, passenger transport by buses, and cargo transport. The Ministry is also implementing several projects, including the digital ticketing platform, the IVMS tracking system, smart weighbridges, land transport parking yards, and public transport stations.
Port Community System
The logistics sector will witness a qualitative leap in 2026 with the launch of the Port Community System as the first unified and integrated digital platform of its kind. The system leverages modern technologies to reshape trade, logistics, and multimodal connectivity in the Sultanate of Oman. The system integrates ports, airports, dry ports, borders, free zones, and railways into a single smart digital environment, in line with Oman Vision 2040 by enhancing logistics excellence, facilitating the ease of doing business, and creating economic value through advanced digital infrastructure.
Artificial Intelligence and Advanced Digital Technologies
The communications and information technology sector witnessed the announcement of several investment projects in artificial intelligence and advanced technologies to enhance the digital economy. Most notably, the Oman Digital Triangle Initiative was announced to develop three geographically distributed yet digitally connected digital zones, forming a regional gateway for cloud computing, artificial intelligence, and advanced digital services. The initiative is based on green data centers and world-class connectivity infrastructure through submarine cables and fibre-optic networks, supported by a robust regulatory environment that fosters innovation and entrepreneurship. The Ministry is also working on the Green AI Alliance project, the first of its kind in the region, bringing together government, private, and academic sectors to support the development of artificial intelligence while preserving the environment. In addition, the Ministry is developing a dedicated AI zone to attract supporting institutions and AI startups from the Sultanate of Oman, the Middle East, and Africa, creating an enabling environment to attract technology investments and position Oman as a regional hub for artificial intelligence development.
The AI Studio project represents an innovation platform that brings together experts from government entities, the private sector, and academic institutions to develop practical solutions to operational challenges. It also provides specialized consultancy services, training and capacity-building programs, organizes workshops and awareness programs, supports institutions in adopting AI solutions, and creates new business opportunities.
The Omani large language model “Mu’een” represents an ambitious initiative to develop an advanced AI-powered language model that reflects Omani linguistic and cultural identity. The initiative aims to support government institutions with intelligent language applications and build a digital knowledge base serving key national sectors. The model has been initially launched for government use, with plans to expand its applications in the future.
The Ministry also launched the National Open Data Portal. In addition, the Ministry is working on the Fourth Industrial Revolution Center project, which aims to support digital transformation and technological innovation by adopting advanced Fourth Industrial Revolution technologies such as artificial intelligence, the Internet of Things, robotics, and big data analytics. The Center focuses on enabling institutions to develop their digital capabilities, enhance research and development, and prepare national competencies for the digital and knowledge economy.
The number of companies specialized in artificial intelligence reached 46 by 2025. The growth rate of AI startups reached 38% between 2024 and May 2025.
Space Sector
The space sector witnessed notable development in 2025, contributing 0.041% to the gross domestic product by the end of 2024. The national space ecosystem expanded in 2025, with the number of companies operating in the sector reaching 25. The sector employs more than 400 individuals across the public and private sectors.
In 2025, an agreement was signed for the design, manufacture, and launch of an Omani satellite, expected to begin implementation in 2026, under the supervision of the Higher Committee for the Satellite Project. The project is expected to provide sovereign space infrastructure for secure and high-efficiency communications, enable the Sultanate of Oman to own and manage orbital capacities and assets, and reduce reliance on leased external capacities.
To support innovation and develop space entrepreneurship, the Ministry launched the Oman Space Accelerator, aiming to empower 10 local startups in space technologies and applications and support their expansion in local and global markets. The national space program also continued implementing capacity-building initiatives.
In infrastructure development, early 2025 witnessed the signing of the second phase of the Space Engineering Laboratory project at Sultan Qaboos University (2024–2027). This phase includes the construction of the laboratory and equipping it with advanced facilities, building upon Phase One achievements related to the establishment of the satellite ground station. The project aims to enhance national capabilities in the design, manufacture, and launch of CubeSats, support research and innovation, and transfer knowledge and technologies to national competencies.
The Ministry also continued supporting the Etlaq Spaceport project through technical and operational support for scheduled missions. One of the most notable missions was the launch of the suborbital experimental vehicle “Keia-1” by Stellar Kinetics in Al Wusta Governorate. Although the mission was halted before launch due to a technical issue, it delivered valuable outcomes, including improved stakeholder management, accelerated operational procedures, the collection of extensive technical data, successful implementation of safety protocols, demonstration of Etlaq’s operational readiness, and the provision of hands-on experience for national cadres in handling cryogenic fluids, power systems, and launch-pad infrastructure.
Semiconductors and Electronic Chips
In support of the Ministry’s efforts to establish a semiconductor and electronic chip industry, the Ministry supported hosting the second edition of the Global Semiconductor and Electronics Executives Summit in the Sultanate of Oman, with the participation of approximately 140 chief executive officers from international companies specializing in semiconductors and electronic chips. The summit featured approximately 40 speakers and the presentation of around 25 technical papers addressing specialized aspects of the semiconductor and electronic chip industry. The Digital Industry Program aims to attract strategic investments in semiconductor and electronic chip manufacturing, build national specialized capacities in this vital industry, and establish a national program through integration between public and private sector institutions. This includes incorporating semiconductor curricula into electrical engineering, computer engineering, and related disciplines, qualifying Omani cadres over the next five years, attracting semiconductor companies to invest in the Sultanate of Oman, and establishing a Semiconductor Center of Excellence.
Policies and Legislation
In 2025, several laws and regulatory policies were issued to enhance the digital governance ecosystem in the Sultanate of Oman. Most notably, the Electronic Transactions Law was issued under Royal Decree No. (39/2025), representing a key step toward regulating digital transactions and enhancing trust in the electronic environment. The Government Digital Transformation Regulation was also issued under Ministerial Decision No. (108/2025), establishing a regulatory framework to strengthen digital governance and organize government digital transformation efforts by defining roles, authorities, and responsibilities, enhancing integration between the Ministry of Transport, Communications and Information Technology and government entities, and enabling the implementation of digital projects under a unified government framework.
Additional policies and guidelines were issued, including the National Data Governance and Management Framework, the General Policy for the Safe and Ethical Use of Artificial Intelligence Systems, administrative standards for managed services (technical support, infrastructure, and information systems), and governance controls for the development, use, and publication of software in government units. In 2026, it is expected that the Telecommunications and Information Technology Regulation Law, the Cybercrime Law, and the draft Omani Space Law will be issued.
Following the issuance of the Personal Data Protection Law under Royal Decree No. (6/2022) and its Executive Regulation issued under Ministerial Decision No. (34/2024), which constitute the legislative framework regulating personal data protection in the Sultanate of Oman, the Ministry will proceed in 2026 with the full enforcement of the Executive Regulation effective from the beginning of February 2026. This will enhance compliance among entities subject to the law, protect data subjects’ rights, and reinforce the principles of transparency and accountability in data processing. In this context, the Ministry launched several electronic services in 2025 related to the Personal Data Protection Law, including the submission of complaints and reports, the issuance of personal data processing permits stipulated in Article (5), and self-assessment services for entities subject to the law and its Executive Regulation.
Annex
Roads Expected to Open
1. Dhofar Governorate:
- Dualization of Sultan Taimur Road
- Dualization of Al Farooq Road
- Paving of roads in Wilayat Muqshin
- Paving of the Harweeb–Al Mazunah–Maiten Road
- Al Mughsail Road and Bridge Project
Paving of the Seih Al Khairat–Al Shisr Road
2. Rehabilitation of Al Hazm–Rustaq Road, Wilayat Rustaq
3. Completion of Turki bin Said Road from Al Kamil and Al Wafi to Sur, South Al Sharqiyah Governorate
4. Rehabilitation of Sultan Thuwaini bin Said Road (Wilayat Bidbid–Wilayat Nizwa), Al Dakhiliyah Governorate
5. Completion of works for the Sohar Free Zone Link Road
6. Design and construction of the Aqabat Aafri Road between Samail and Izki, and an asphalt road for Al Suqari Village (Al Dakhiliyah Governorate)
7. Completion of remaining works for upgrading Seih Qatna Road, Al Jabal Al Akhdar
8. Tender for completion of the dualization project from Al Gas Roundabout to Bilad Sur
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