For decades, global finance has primarily associated the Middle East with hydrocarbons.

But a quiet, profoundly strategic transformation is underway in the Sultanate of Oman, pivoting the nation’s entire economic structure away from volatile oil markets toward a resilient, knowledge-based future. This is not simply diversification; it is a foundational re-engineering, led by the ambitious blueprint of Oman Vision 2040.

If you’re tracking emerging global innovation hubs, Oman’s progress requires immediate attention.

The 10% Mandate: From User to Creator

At the core of Vision 2040 is a stark, measurable goal: to increase the contribution of the digital economy to overall Gross Domestic Product (GDP) from its current level of approximately 2 percent to a significant 10 percent by 2040.  

This objective signals a shift that goes far beyond merely improving internet access, an area where Oman already boasts high 4G and 5G population coverage. The real effort is in cultivating a robust digital creator class—fostering high-value application development, deep-tech innovation, and scalable, internationally competitive technology companies.

To achieve this 10% target, policy priorities are laser-focused on specific challenges: upgrading digital infrastructure, substantially increasing Research and Development (R&D) spending, and systematically expanding funding opportunities for digital startups and SMEs. Oman is moving from foundational infrastructure to high-value intellectual property creation.

International Validation: Indexing Success

The effectiveness of this strategic commitment is not merely theoretical; it is reflected in Oman’s rapid ascent in international competitiveness metrics.

The Sultanate recently earned an impressive eighth-place ranking in the Global Entrepreneurship Index 2024, achieving a score of 5.7, a tangible increase from 5.4 in the previous year. This top-tier ranking confirms that the policy environment is functioning efficiently.  

Oman’s strong position is validated across several critical entrepreneurial axes, including:

  • Entrepreneur Financing: Enhanced access to funding sources for entrepreneurs.  
  • Government Policies: Tangible government support, prioritizing startups and small businesses.  
  • Educational Integration: The inclusion of entrepreneurship education in schools, universities, and vocational training.  

Furthermore, the Authority for Small and Medium Enterprises Development (ASMED) has been instrumental in driving this achievement by implementing supportive policies, facilitating startup funding, and working with public and private sector partners to enhance overall SME competitiveness.

The Catalysts: A Coordinated National Effort

This transformation is orchestrated through sophisticated governmental and corporate mechanisms designed to channel resources and expertise directly into the innovation pipeline:

  1. Sovereign Commitment: Initiatives like the National Initiative for Artificial Intelligence (AI) and a substantial budget allocation are actively advancing economic diversification.  
  2. Corporate Champions: Key partnerships with national champions, such as Omantel Labs and the ITHCA Group, provide invaluable resources, mentorship, and funding, particularly in critical areas like FinTech and 5G application development.  

Oman’s quiet revolution is, in fact, a coordinated national strategy, demonstrating an unwavering commitment to transforming its economy within a defined timeline.

For investors and entrepreneurs seeking a stable, strategically supported, and high-growth entry point into the MENA region, Oman is no longer an emerging market—it is an executing market.