A first-ever cluster for investments in Artificial Intelligence and Advanced Technologies, planned in the Wilayat of Al Seeb in Muscat Governorate, will position Oman as a destination for tech start-ups in the region, according to key figures associated with the landmark initiative.
The AI Zone Special Economic Zone was formally unveiled at Comex 2025 on Monday as a joint initiative of the Ministry of Transport, Communications and Information Technology (MoTCIT) and the Public Authority for Special Economic Zones and Free Zones (OPAZ).
Local Omani developer Afouq Investment & Development has been entrusted with the first phase of the cluster’s development, covering an area of 100,000 m². A partnership between Afouq and Egypt’s Prime Group envisages investment inflows of around RO 100 million in this initial phase.
Commenting on the significance of the initiative, Dr Seema al Kaabi, Acting Director General at the Ministry of Transport, Communications and Information Technology, said: “This project aims to create an integrated environment to attract technology investments, with a particular focus on AI and emerging technology start-ups from Oman, the Middle East and Africa. The project aims to strengthen the national economy and advance technology infrastructure, support the growth and regional/global expansion of start-ups, create specialised high-quality job opportunities and position Oman as a regional hub for AI innovation”.
While the Public Authority for Special Economic Zones and Free Zones will handle regulatory and supervisory affairs, the Ministry will act as a technical partner in the development of the cluster, she added.
Afouq will be responsible for infrastructure development, operations management, promotion of the zone to attract companies and investors, as well as enhancing local value creation and supporting social responsibility programmes.
“This project represents a strategic step towards localising modern technologies and positioning the Sultanate of Oman as a preferred destination for AI and tech start-ups across the region and the world”, the official noted in a post.
The Afouq–Prime Group partnership has also pledged to deliver a project that incorporates world-class technologies and future-ready solutions. Siham al Harthy, Chairperson of Afouq, stated: “This zone will stand as an architectural icon — drawing inspiration from global tech hubs while reflecting Omani heritage — and will serve as a launchpad for start-ups in a supportive, innovation-driven environment”.
Mahmoud Farrag, CEO of Prime Group, added: “Following the signing of the agreement, we immediately began forging global partnerships to bring this visionary zone to life. Developing a dedicated AI and advanced technology hub demands collaboration with globally recognised players — a process already underway. Prime Group brings deep experience from projects across Vietnam, the UAE and multiple countries in Asia and Africa, supported by a global network of corporations, research institutions and accelerators. This will help position the zone as a global platform for future investment and innovation”.
