Oman’s strategic emphasis on ICT and telecommunications underpins its vision of becoming a digital-first economy. This focus is transforming the sultanate’s financial landscape while positioning it as a leader in regional and global digital transformation. As of September 2024, 98% of households in Oman had internet access, solidifying its status as a centre for connectivity, innovation and cybersecurity. This dedication to digital progress is evident in significant investment and an improved global standing, highlighted by a four-position climb in the Network Readiness Index 2024, where Oman ranked 50th out of 133 economies. The sultanate also secured first place worldwide in the sub-indicator for population covered by at least a 3G mobile network, reflecting its commitment to digital accessibility.
Additionally, Oman achieved significant progress in the UN E-Government Survey 2024, climbing nine positions to rank 41st out of 193 countries. This milestone reflects the sultanate’s commitment to enhancing digital government services and infrastructure. ICT and telecommunications are central to Oman’s vision for economic diversification and sustainable development, serving not only as tools for connectivity, but also as catalysts for building smart cities, digital services and a competitive business environment. Key initiatives, such as the creation of technology parks, start-up incubation centres, collaboration with global technology leaders and strategic advancement in artificial intelligence (AI), aim to position Oman as a regional innovation destination. Moreover, advancement in cybersecurity and data governance highlights the country’s dedication to fostering trust in digital ecosystems. These efforts align with Oman’s goals to drive innovation, attract international investment and equip its workforce with advanced digital skills, ensuring long-term competitiveness in the evolving global digital economy.
Structure & Oversight
Oman has built a comprehensive and integrated framework to drive advancement in its ICT and telecommunications sectors, reflecting the country’s commitment to digital transformation and innovation-led growth. The Ministry of Transport, Communications and IT (MTCIT) is responsible for overseeing Oman’s digital transformation. This body leads key initiatives, including the National Programme for Digital Economy (NPDE), the Government Digital Transformation Programme (GDTP) 2021-25 and the Cybersecurity Programme. These initiatives aim to enhance operational efficiency across public and private sectors by advancing digitalisation, centralising digital resources, and strengthening capabilities in cybersecurity, cloud storage and data protection.
Underpinning these efforts is Oman Vision 2040, which positions the digital economy as a cornerstone of the country’s economic growth and diversification. The NPDE emphasises the transition of the digital economy from a supportive role to a primary economic driver and significant contributor to GDP. It is built on three core pillars: developing smart government systems, fostering a digitally empowered society and enabling business digitalisation. By working in partnership with both public and private stakeholders, the MTCIT drives investment in Fourth Industrial Revolution (4IR) technologies such as AI and the internet of things (IoT), among others. These efforts prioritise localising and transferring technology, fostering entrepreneurship and innovation, and accelerating digital transformation across government services and key economic sectors.
Development Targets
Through these initiatives, Oman is redefining its role in the global digital economy, fostering innovation, building a competitive and inclusive ecosystem, and equipping its workforce with advanced digital skills. By the end of 2025 Oman aims to automate 80% of core government services to improve accessibility and efficiency. By 2030 the sultanate targets 80% digital transformation across five priority sectors, including logistics, manufacturing and tourism. Additionally, it seeks a 25% contribution from digital services in total service exports by 2035. By 2040 the digital economy is expected to contribute 10% to GDP, multiplying the ICT sector’s impact five-fold over the next two decades. These initiatives position Oman as a regional centre for digital innovation, ensuring longterm resilience, prosperity and global competitiveness.
The Telecommunications Regulatory Authority (TRA) plays a critical role in Oman’s telecoms sector, overseeing service delivery, pricing, market competition and licensing. The TRA issues licences across three categories, with classification dependent on the services the applicants intend to provide. The body has facilitated the introduction of services such as international gateways and mobile virtual network operators (MVNOs), including Renna Mobile and FRiENDi. Beyond regulating market operations, the TRA manages spectrum allocation and licensing, ensuring compliance and supporting the rollout of technologies such as 5G, a cornerstone of Oman’s digital transformation strategy. In 2012 its remit expanded to include oversight of the sultanate’s postal services, further broadening its regulatory scope.
Complementing these efforts is the ITHCA Group, established in 2019 and formerly known as the Oman Information and Communications Technology Group. As the ICT-focused arm of the Oman Investment Authority, the country’s sovereign wealth fund, ITHCA Group drives investment in 4IR technologies and develops the necessary infrastructure to support the country’s digital transformation. The group oversees key entities such as Oman Broadband Company, which develops and operates the national broadband infrastructure; Oman Towers, which manages telecommunications tower infrastructure; the Oman Technology Fund, which focuses on innovation and investment in technology start-ups; and Space Communications Technology, which advances space and satellite communication capabilities, among others. In 2021 ITHCA Group launched Withaq Services to centralise support functions across its portfolio. Through public-private partnerships (PPPs), investment in emerging technologies such as AI and blockchain, and the execution of transformative programmes, ITHCA Group fosters innovation and strengthens Oman’s ICT ecosystem.
Market Size
In December 2024 the MTCIT, in collaboration with the National Centre for Statistics and Information (NCSI), launched the Digital Economy Contribution to GDP survey project, running from January to May 2025. This initiative aims to measure the digital economy’s contribution to Oman’s GDP, focusing on the ICT sector and digitally provided financial and insurance services. Using 2023 data, the survey covers approximately 1300 establishments across all governorates, analysing key indicators such as sector value, employment, wages, operational expenses and revenue. The findings will support policy-making, track systematic progress, enable local and global comparisons, and guide economic research and decision-making.
Performance
Oman’s ICT market has shown steady expansion, valued at $5.5bn in 2024 and projected to reach $9.1bn by 2029, with a compound annual growth rate (CAGR) of nearly 8.9% during the period. “Oman’s ICT and technology sector is growing steadily, with a strong emphasis on digital transformation and fostering innovation across industries,” Arfat Al Aghbari, founder and CEO of AR Technology, told OBG. “Emerging technologies like IoT and AI are creating new opportunities for efficiency and growth while also addressing challenges in scalability and adoption.”
The ICT sector’s contribution to GDP, which expanded from 1.8% in 2012 to approximately 2% in 2021, is expected to reach 10% by 2040 as part of the National Digital Economy Programme, with targeted 5% increases every five years. As Oman aims to digitalise priority economic sectors by 2030, technology is poised to evolve into a standalone industry by 2040. Alongside this, government initiatives such as reducing land costs have spurred growth in the country’s data centre market, valued at $286m in 2021 and expected to reach nearly $471m by 2027, increasing at a CAGR of 11.4%. These efforts highlight the sultanate’s commitment to strengthening its digital economy and positioning ICT as a key driver of innovation and national growth.
Similarly, the telecommunications sector is an important contributor to Oman’s GDP, with total revenue from licensed providers reaching OR878.4m ($2.3bn) in 2023, according to the TRA’s annual report. Investment in the sector during the same year totalled OR221.9m ($576.7m). In the first half of 2024 mobile revenue amounted to OR249.4m ($648.2m), reflecting a 1% decline from OR252m ($655m) in the same period of 2023. However, the monthly average revenue per user (ARPU) for mobile services increased to OR5.59 ($14.53) in the first six months of 2024, up 1% from OR5.54 ($14.40) in the previous year. Simultaneously, fixed service revenue rose to OR159.8m ($415.3m), marking a 3% growth compared to OR154.5m ($401.5m) in the same period of 2023. Conversely, the monthly ARPU for fixed services declined by 4% to OR39.3 ($102), down from OR40.8 ($106) during the first six months of 2023. Notably, this positive trajectory continued in the third quarter of 2024, with mobile ARPU expanding by 1.6% and fixed ARPU increasing by 4.9% year-on-year (y-o-y).
Key Players
Oman’s telecommunications sector, despite its high market saturation, is marked by dynamic competition driven by digital transformation, infrastructure investment and regulatory support. The industry is anchored by three major operators – Omantel, Ooredoo and Vodafone – alongside MVNOs Renna Mobile and FRiENDi. Omantel, which is 51% government-owned, has been a dominant force since its establishment in 1970 as the General Telecommunications Organisation, initially operating as a government monopoly providing fixed-line services. Omantel expanded to offer comprehensive fixed and mobile services while growing its regional presence with key investment, such as a 21.9% stake in Kuwait’s Zain Group and 80% in Oman Data Park. In addition, the organisation has embraced innovation with platforms such as mOmkin, a locally hosted IoT solution designed to accelerate digital transformation.
Ooredoo, formerly Nawras, entered the market in 2005 as Oman’s second mobile operator. Part of the Qatari-based Ooredoo Group, which operates in 10 countries across Asia and MENA, Ooredoo has been listed on the Muscat Stock Exchange since 2010. In June 2023 it became the first telecoms operator in Oman to achieve 5G coverage across the sultanate, solidifying its position as a leading provider of digital connectivity. Vodafone joined as the third mobile operator in January 2020 through a licensing agreement with Oman Future Telecommunications, a consortium of local investment funds. It positioned itself as a digital-first operator, leveraging its international expertise to appeal to techsavvy users. By February 2025 Vodafone had achieved a 14% market share in the mobile broadband segment, highlighting its rapid growth.
The TRA has played a crucial role in fostering competition and liberalising the market, and introduced the MVNO model in 2009. Renna Mobile and FRiENDi have leveraged the infrastructure of established operators to provide affordable and flexible mobile services. Renna, launched in 2007 on Omantel’s network, became one of the first MVNOs in the country and was acquired by Integrated Telecom Oman in 2016, with Omantel acquiring a 40% stake in July 2019. FRiENDi, launched in 2009, was part of a regional MVNO group operating in countries such as Saudi Arabia and Jordan. The group then rebranded to Virgin Mobile Middle East & Africa in June 2012 and in February 2023 was acquired by Beyond ONE, a subsidiary of Priora Management Holding Dubai.
Mobile Broadband
By the end of September 2024 Oman recorded 7.2m active portable Wi-Fi subscriptions, a 1.2% increase compared to the same period in 2023. With a population of 5.5m as of early 2025, this translates to an average of 1.3 mobile subscriptions per person, underscoring the sultanate’s high mobile penetration and growing reliance on mobile connectivity. Post-paid subscriptions saw significant expansion, reaching 2.1m at the end of September 2024, a 23% y-o-y increase from the same period of 2023. Pre-paid subscriptions declined by 6% over the same period, settling at 5m. This shift suggests a growing preference for the flexibility and benefits offered by post-paid plans.
Among the total mobile subscriptions, 3.8m were attributed to operators, with an additional 1.2m managed by resellers. High-speed internet connectivity also saw marked improvements, with active mobile broadband subscriptions reaching 5.8m in September 2024. The increasing adoption of digital services is evident, as 83% of individuals in Oman used the internet for electronic financial transactions as of September 2024.
The mobile broadband market in Oman is spread across five players, with Omantel and Ooredoo both holding a 35% market share. Vodafone follows with a 12% share, while FRiENDi and Renna each account for 9%. In the first half of 2024 domestic voice outgoing traffic reached 3.9bn minutes, reflecting a 7% increase compared to the same period in 2023. This corresponds to a monthly average of 95 domestic voice minutes per subscription, marking a 9% y-o-y rise.
To accommodate the increasing demand for broadband, Oman has made significant advancement in infrastructure development. The TRA announced in May 2023 that starting in 2024 all 3G stations would be upgraded to support 4G and 5G services. From July to December 2023 the number of broadband networks across Oman expanded to 5238 operational 5G stations, marking a 102% rise over the same period in 2022. This expansion continued into 2024 with the number of 5G stations reaching 5431 by the end of the first half of the year, representing a 19% increase compared to 4566 stations in the same period of 2023.
Fixed Broadband
Fixed internet subscriptions in Oman reached nearly 578,000 in September 2024, up 3.5% from September 2023. This reflects a steady rise in broadband adoption across homes and businesses. High-speed broadband services, offering speeds exceeding 256 Kbps, accounted for the majority with around 576,000 subscriptions, while lower-speed connections, such as telephone-based and leased lines, remained at 1700. Traditional fixed-line services experienced a significant decline, with total subscriptions dropping by 25.1% to 431,000. Analogue fixed-line connections saw a sharp reduction of 72.6% to 63,000, as customers transitioned to modern alternatives. Subscriptions leveraging internet protocol (IP) technology rose notably by 10.5%, exceeding 318,000, underscoring a shift toward IP-based communication solutions.
According to the TRA, Oman’s fixed broadband penetration rate stood at 78.9% at the close of 2024. This progress is underpinned by the national backbone network, developed by Oman Broadband Company as part of the National Broadband Strategy. Established in 2014, the government-owned entity focuses on expanding and modernising broadband infrastructure across the sultanate. The network integrates fibre assets owned by Oman Broadband Company and other utility vendors, aiming to achieve 95% coverage by 2030. In an effort to bridge the digital divide, especially between urban and rural communities, the TRA has collaborated with Oman Broadband Company to extend internet services to underserved areas. Approximately 600 villages have been identified for satellite link coverage, ensuring access to reliable home internet services.
The fixed broadband market in Oman is dominated by three major players. Omantel holds a 55% market share, followed by Ooredoo with 28% and Awasr with 17%. Awasr, established in April 2016, is positioned as a premium telecommunications provider specialising in high-speed broadband and customised connectivity solutions for both residential and business customers. In the first six months of 2024 domestic voice outgoing traffic in the sultanate totalled 66.4m minutes, reflecting a 16% decline compared to the same period the previous year. This corresponds to an average of 25 domestic voice minutes per subscription per month, marking a 19% y-o-y decrease.
As of the end of 2023, nearly 774,000 residential units in Oman were covered by fibre-optic networks. The TRA targets the expansion of infrastructure to cover 75% of buildings with fibre-optic services and 85% of buildings with fixed broadband networks by the end of 2025. Despite the widespread availability of internet services, technology usage trends indicate an 11% decline in desktop and laptop ownership among households. Nevertheless, 68% of individuals aged 18 and above continue to use desktop or laptop computers, according to the NCSI. This trend suggests an ongoing shift in technology preferences and usage patterns among households in the sultanate.
Cybersecurity
Oman has maintained its position as one of the most cybersecurity-prepared countries in the world, as highlighted in the International Telecommunication Union’s 2024 Global Cybersecurity Index. Scoring within the top tier of the index, Oman improved its performance from 96 points in 2020 to 97.02 points in 2024. The country stands out for its top marks of 20 in international cooperation and institutional organization. Additionally, Oman performed strongly across other key areas, with scores of 19.59 in legal measures, 18.39 in technical measures and over 19.03 in capacity development measures. These results not only affirm Oman’s leadership in the region, but also set a benchmark for effective cybersecurity strategies and international collaboration.
Oman’s achievements in cybersecurity are rooted in its early commitment to enhancing its digital infrastructure. Notable milestones include the creation of the Oman National Computer Emergency Readiness Team (OCERT) in April 2010 and the establishment of the Arab Regional Cybersecurity Centre (ARCC) in December 2012. At the 12th Regional Cybersecurity Week in January 2024, which brought together over 600 specialists from 60 countries, Oman’s MTCIT showcased its commitment to international cooperation. The Muscat-based ARCC has played a pivotal role, supporting over 190 initiatives in 50 countries and benefitting more than 10,000 professionals since its inception in March 2013. The event saw the launch of a number of key initiatives, including the GCC Cybersecurity Hackathon, which aims to contribute to the region’s cybersecurity industry; the Hadatha Award, which will honour achievements in cybersecurity; and the CREST Cyber Accelerated Maturity Programme, in collaboration with the UK’s CREST organisation, which aims to enhance the capabilities of cybersecurity service providers.
In October 2024 MTCIT, alongside OCERT and the University of Technology and Applied Sciences, unveiled the Hadatha Centre for Cybersecurity Industry. This initiative seeks to bolster the National Programme for Cybersecurity Industry by advancing research, fostering knowledge and creating modern cybersecurity solutions through simulation and testing. That same month Oman also launched the Cybersecurity Industry Monitoring Centre, a global initiative designed to monitor and assess the growth of the cybersecurity sector.
Throughout the first nine months of 2024 the MTCIT, via the NCIS, addressed 136 cybersecurity incidents. In addition, 25 security-related cyber alerts were issued, each accompanied by recommendations to mitigate associated risks. The MTCIT has made significant strides in digital verification, issuing more than 2.3m electronic authentication certificates linked to residence cards, 233,000 certificates for mobile phone authentication, and 213 electronic signature certificates designed for employees in both the public and private sectors. To bolster digital security, the ministry incorporated 14 additional electronic systems, streamlining authentication processes and safeguarding digital communications.
E-Government
Oman has achieved significant progress in advancing its digital government capabilities through the e.oman 2030 strategy, which supports the broader Oman Vision 2040 framework. This initiative harnesses technology to uplift communities, promote economic development and enhance quality of life. The strategy focuses on expanding the IT sector’s role in the economy, transitioning public services to digital platforms, creating jobs in the digital sector and establishing Oman as a leader in global cybersecurity.
At the heart of this effort is the GDTP, a key element of the NPDE. Targeting more than 50 government entities, the GDTP seeks to simplify services, integrate systems and launch a centralised e-portal with a budget of OR170m ($441.8m). Its primary goals include improving e-service delivery, optimising digital infrastructure, enhancing workforce skills and fostering public engagement. By the close of 2025 it aims to achieve 80% electronic processing of government services, an 85% readiness in digital systems and comprehensive digital training for public sector employees.
The GDTP is structured around four priority tracks, focusing on improving efficiency in solutions and infrastructure, boosting e-services, empowering national capabilities and managing digital change, and raising community participation and awareness. These tracks encompass 36 projects and initiatives, and 67 performance metrics, all focusing on simplifying user access to digital services, improving resource utilisation, collaborating with the private sector and fostering innovation.
Human Capital
While Oman has expanded its higher education offerings, particularly in ICT, a skills gap persists between academic training and industry requirements, posing challenges to economic diversification and Oman Vision 2040 goals. PPPs are key to addressing this gap by fostering collaboration between academia, government and industry. Key strategies include aligning curricula with industry standards, integrating certifications into degree programmes, promoting internships for practical experience, encouraging research collaboration and sharing resources to maintain advanced facilities.
To address these challenges, in September 2022 the MTCIT launched the National Initiative for Digital Competencies (Makeen). Makeen aims to equip 10,000 Omanis with digital skills by the end of 2025, providing income-generating opportunities in the digital sector and aligning with the objectives of the sultanate’s 10th five-year plan. Overseen by the Future Skills Development Department, Makeen focuses on meeting the rising demand for technical competencies and supporting the labour market with skilled local talent. In 2023 the MTCIT conducted 85 training programmes under Makeen, empowering 5000 Omani youth with digital skills. Participants implemented over 1600 projects and earned over 480 technical accreditation certificates. The initiative prioritises fields such as IT, cybersecurity, AI, informatics and programming. Approximately 4800 trainees entered the labour market in 2023.
Outlook
Oman’s strategic location, high-income economy and advanced digital infrastructure underscore its potential as a global and regional ICT destination. The country’s dedicated efforts to expand internet access, enhance its cybersecurity landscape and integrate advanced technologies support economic diversification and smart city development. The sultanate is simultaneously strengthening its regulatory framework, fostering competition in the telecommunications sector, and advancing e-government services to improve efficiency and accessibility. By investing in digital capabilities, fostering business-friendly reforms and embracing 4IR technologies, Oman is poised to strengthen its regional position and emerge as an international leader in innovation and digital transformation.
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