Digital Economy to Drive Oman’s Economic Diversification
Oman is positioning its digital economy as a key driver of economic diversification, as outlined in a recent report by the Ministry of Transport, Communications, and Information Technology (MoTCIT). The Digital Economic Diversification Operandum Framework, presented by Dr. Ali bin Amer Al Shaithani, Under-Secretary for Communications and Information Technology, emphasizes the transformative role of digital technologies in reshaping the country’s economic landscape.
According to Dr. Al Shaithani, Oman is leveraging digital tools and emerging technologies to enhance economic diversification, government efficiency, and overall quality of life. This vision aligns with Oman Vision 2040, which seeks to reduce the nation’s dependency on oil revenues and promote growth in various non-oil sectors such as logistics, tourism, energy and minerals, agriculture and fisheries, and manufacturing.
The Role of Digital Transformation in Economic Growth
Digital transformation is revolutionizing traditional industries in Oman by integrating automation, artificial intelligence (AI), and data analytics. The government aims to foster entrepreneurship and encourage the development of technology-driven startups, creating an innovation-oriented ecosystem that will enable Oman to become a regional leader in technology and innovation.
The National Digital Economy Programme has set an ambitious goal of achieving 80 percent digital transformation in economic diversification sectors by the year 2030. Dr. Al Shaithani highlighted that this will be accomplished through strategic investments, policy enhancements, and talent development, all aligned with Oman Vision 2040.
To successfully implement this vision, Oman is focusing on inclusivity, sustainability, and innovation, ensuring that the benefits of digital transformation extend across all sectors of the economy. This commitment is expected to result in a resilient, diversified, and knowledge-based economy that thrives in the digital age.
Key Initiatives for Digital Transformation
The framework identified several key initiatives aimed at advancing digital transformation in critical sectors. One of the most significant goals is the digitalization of essential economic sectors by at least 80 percent by 2030. The targeted sectors include energy and minerals, manufacturing, logistics, tourism, and agriculture and fisheries. These industries will incorporate technologies such as AI, automation, and big data analytics to improve efficiency and productivity.
For instance, the manufacturing sector is increasingly adopting robotics and automation to streamline production processes. In the tourism sector, smart tourism solutions are being implemented to enhance visitor experiences and operational efficiency. Similarly, the fisheries sector is integrating aquaculture technologies to optimize resource use and improve output.
Another major initiative is the establishment of a smart government, with the objective of automating 80 percent of core government services by 2025. This effort builds on the National Government Digital Transformation Programme, known as ‘Tahawul,’ which was launched in 2021. The goal of Tahawul is to simplify administrative processes, integrate digital services, and create unified digital platforms for public service delivery. As of November 2024, the Ministry reported a 73 percent completion rate in this endeavor.
Boosting Digital Economy Exports
Beyond domestic digital transformation, the framework also highlights the potential for Oman to become a major exporter of digital economy services. The government has set a target for digital economy services to account for 25 percent of total service exports by 2035. To achieve this, several programs have been introduced under the digital economy initiative, focusing on key industries such as space technology, artificial intelligence, cybersecurity, financial technologies, e-commerce, and digital industry development.
These initiatives aim to enhance Oman’s global competitiveness by expanding the reach of its digital services sector, encouraging investments in cutting-edge technologies, and supporting tech-driven enterprises that can compete on an international scale.
The Road Ahead
As Oman moves forward with its digital transformation agenda, collaboration between the government, private sector, and technology innovators will be crucial to achieving the country’s ambitious targets. By integrating advanced digital tools and fostering an innovation-driven business environment, Oman is well on its way to establishing itself as a leader in the digital economy.
With continued commitment and strategic execution, Oman’s transition toward a knowledge-based, tech-driven economy will not only enhance its global standing but also create sustainable economic opportunities for its citizens. The upcoming years will be pivotal in shaping Oman’s digital future, with 2025 and 2030 serving as key milestones in its transformation journey.
