Oman's Special AI Zone: From COMEX Stage to Royal Decree.

September 2025. COMEX stage. An "AI Designated Zone" announcement. The audience applauded; companies asked "when?" Seven months later, the answer arrived — not as a press conference, but as a royal decree [1][3].

That distinction is not ceremonial. Royal Decree 50/2026 places the zone under Oman's Special Economic Zones and Free Zones law [8][9]. That means binding incentives, not marketing promises. The difference between the two is the difference between a conference and a courtroom.

What was formally established.

The official name is now the "Special AI Zone" — a precise designation that distinguishes it from every prior announcement [9]. It sits in Seeb wilayat, Muscat Governorate, adjacent to the Civil Aviation Authority building. Total area: approximately 104,000 square metres [9][12].

The zone is designated number 24 in the portfolio managed by the Public Authority for Special Economic Zones and Free Zones (SEZAD) — a classification that gives it a standalone administrative identity separate from ministerial bureaucracy [9].

Three target sectors are named in the decree: artificial intelligence, semiconductors, and robotics [9]. Not "digital transformation" as a catch-all phrase — three specific technology bets backed by sovereign law. The three are connected: semiconductors power the robots; robots generate the data that AI processes.

What the Special Economic Zones law actually delivers.

Inclusion under the Special Economic Zones and Free Zones law means, in principle: income tax exemptions for defined periods, 100% foreign ownership, accelerated incorporation, and simplified customs clearance [9]. The phrase "in principle" deserves attention — the full operational rulebook is still being drafted by SEZAD in coordination with MTCIT.

The project is aligned with the priorities of the Eleventh Five-Year Plan 2026–2030 [9] — meaning a dedicated government budget line and measurable KPIs attached to the zone's performance.

Estimated investment: $265 million — based on the COMEX 2025 announcement by Ufuq and Prime Group [2]. The decree itself specifies no financial figure; developer appointment remains under SEZAD's authority and has not been formally confirmed post-decree.

The decree does not create a place — it creates a system. The difference between the two is the difference between a shop and a free zone.

Duqm first — the model that preceded this project.

The AI zone inside the Duqm Special Economic Area was Oman's first experiment: a testing environment for AI research, drone laboratories, and IoT applications — with a longer ambition to develop Duqm into a smart city [6][7]. The full SEZAD spans 18 square kilometres and is overseen by a multi-entity supervisory committee [6].

The two zones are not competitors — they are layers. Duqm for experimentation and research; Seeb for commerce and scale. The company testing in Duqm today is the natural candidate to relocate production into Seeb tomorrow.

The legislative stack beneath the decree.

Royal Decree 50/2026 did not arrive in a vacuum. Two years prior, the government launched the National Programme for AI and Advanced Digital Technologies 2024–2026 [4] — targeting improvement in Oman's international AI readiness rankings. In March 2026, MTCIT published the General Policy for the Safe and Ethical Use of AI Systems [5] — a reference framework that answers the first question every foreign company asks: "What are the red lines here?"

Three layers stacked on each other: a national programme, an ethics policy, and a royal decree. This is not a legal showcase — this is the governance structure of a government that intends to execute.

What companies should do right now.

The decree is signed. The operational gate is not yet open. This is the golden window for serious builders.

• Queue for negotiation now. SEZAD is beginning to build applicant lists. Companies that move today will negotiate better entry terms than companies that wait for a formal launch event.
• Review your ownership structure. 100% foreign ownership requires legal restructuring. Do not wait until contract day.
• Build the MTCIT relationship now. The Ministry of Transport, Communications and Information Technology is the technical driver — every support programme the zone launches will route through it [1][3].

The challenges the official announcement does not mention.

At Nuqta, we work daily with clients in the Omani market. We see the gap between announcements and execution. Three structural challenges the zone must solve — not defer [10].

• Human capital gap: joint training programmes with universities — not one-day workshops.
• Compute energy cost: long-term green energy contracts priced to compete with UAE rates.
• Attracting foreign developers: fast-track residency for developers — not just full company ownership.

The real question.

$265 million. Approximately 104,000 square metres. A royal decree. An eleven-year plan. All of this exists on paper today.

The question is not whether Oman is serious — the decree answers that. The question is who builds what fills this zone with real technical output. If the answer is foreign companies importing their products and employing Omanis in technical support roles, the zone will deliver FDI numbers but not a digital economy.

At Nuqta, we are betting on the second scenario. And if you are building in this space, we want to know what you are building.

Frequently asked questions.

• What is Royal Decree 50/2026? Signed by Sultan Haitham bin Tarik on April 29, 2026, it formally establishes the "Special AI Zone" in Seeb wilayat, Muscat Governorate, under Oman's Special Economic Zones and Free Zones law [8][9].
• Where is the zone located? In Seeb wilayat, Muscat Governorate, adjacent to the Civil Aviation Authority building. Total area: approximately 104,000 square metres. Zone 24 in SEZAD's managed portfolio [9].
• What sectors does the zone target? Three sectors: artificial intelligence, semiconductors, and robotics — aligned with the priorities of the Eleventh Five-Year Plan 2026–2030 [9].
• What is the difference between the AI zones in Seeb and Duqm? Duqm is an experimental environment for AI research and drone testing. Seeb is designed for commercial scale under full economic zone incentives [6][9].
• How can a company apply? As of May 2026, the official registration portal has not launched. Direct engagement with SEZAD and MTCIT is the most appropriate path [1][3].

Sources.

[1] MTCIT — AI Zone Development Project at COMEX 2025.

[2] Zawya — Oman's Afouq, Prime Group launch $265M AI zone in Muscat.

[3] MTCIT — COMEX 2025 launch: AI Designated Zone and Digital Triangle.

[4] MTCIT — Oman AI & Digital Future Program 2024–2026.

[5] MTCIT — General Policy for the Safe and Ethical Use of AI Systems.

[6] Duqm SEZAD — Supervisory team for the AI zone at Duqm, 2021.

[7] Duqm SEZAD — Drone experiments in Duqm SEZ, 2021.

[8] Argaam — Royal Decree 50/2026 details, April 2026.

[9] Oman Daily — Special AI Zone details post-decree, April 2026.

[10] Nuqta — Internal field observations from the Omani market, May 2026.

[11] Qanoon Oman — Royal Decree 50/2026 full text (Official Gazette).

[12] Atheer — SEZAD Chairman statement on zone area, April 2026.