Why Oman's £1 Billion AI Deal Could Transform Your Business

Oman and the United Kingdom have sealed a landmark deal, with a central component being a £1 billion investment in the first phase of a major Artificial Intelligence (AI) data centre in Salalah (Gov). This significant commitment could reshape Oman's digital landscape, offering new opportunities for your business and accelerating the nation's economic diversification.

What the UK-Oman deal involves

The agreement, announced during Sultan Haitham bin Tarik's state visit to the UK in October 2026, was signed between Oman's Ministry of Transport, Communications and Information Technology and Yamna, a UK-founded infrastructure firm (Gov). Yamna is supported by British investment funds, highlighting the UK's commitment to exporting its expertise in AI and data centre development. The broader investment package announced during the visit exceeded £1 billion across various sectors (Gov).

Why Salalah is a strategic digital hub

Salalah is not just a coastal city; it is a critical intersection for global data flows. Its strategic location offers direct connectivity to multiple international subsea cable systems, making it an ideal gateway for data moving between Asia, Europe, and Africa (Omanobserver). This natural advantage positions Salalah as a prime location for large-scale data infrastructure.

Companies like Ooredoo and Equinix have already recognised this, establishing data centres and submarine cable landing stations there in 2024 and 2025 respectively (Timesofoman). The new AI data centre will further cement Salalah’s role as a regional digital hub, enhancing its appeal to global tech investors.

What it means for your business and the Omani economy

This investment is a direct step towards Oman's Vision 2040, which aims to pivot the economy away from oil and gas towards a knowledge-based, innovation-driven future (Omanobserver). The goal is ambitious: to increase the digital economy's contribution to Oman's GDP to 10% by 2040, up from an estimated 2% in 2021 (Muscatdaily). A recent survey even suggested this contribution had already reached 9% by 2026 (Omanobserver).

For your business, this means improved digital infrastructure, which can enable faster, more reliable cloud services and AI applications. Local tech startups and small and medium-sized enterprises (SMEs) could find new opportunities for growth, leveraging enhanced computing power and connectivity (Omanobserver). The National Program for Digital Economy aims to create 3,000 direct jobs annually through such initiatives (Omanobserver).

Oman has also made significant strides in local talent development, with the Omanisation rate in technological activities increasing from 33% in 2022 to 46% in 2026 (Omanobserver). Over the past five years, more than 5,000 technology jobs were created for Omanis, with hundreds trained in AI and semiconductor specialities (Omanobserver). The UK, in turn, expects to create over 100 highly skilled jobs within Britain by exporting this technology (Gov).

The UK's export credit agency, UK Export Finance, is also boosting its financing capacity for British exports to Oman to as much as £7 billion, signalling further bilateral economic engagement (Gov). This creates a more robust ecosystem for digital services, potentially boosting Oman's digital service exports and attracting more foreign direct investment.

Here are some key takeaways:

• Economic Diversification: A major push towards a knowledge-based economy, reducing reliance on hydrocarbons.
• Job Creation: Targets of 3,000 direct digital economy jobs annually in Oman and over 100 highly skilled jobs in the UK.
• Infrastructure Boost: Enhanced digital capacity in Salalah, attracting global tech investment.
• Bilateral Ties: Strengthened economic and strategic partnership between Oman and the UK, with increased financing capacity for British exports.

What to watch next

While the £1 billion investment for the first phase of the Salalah AI data centre is confirmed, specific timelines for its construction and operational launch are still emerging. The focus will now be on the detailed development agreements and technical commitments required to bring this project to fruition.

Oman's National Program for Digital Economy (2026–2030) targets a RO 1.5 billion contribution to GDP and RO 300 million in technology investments by 2030 (Omanobserver). The National AI Strategy 2025-2030 aims for 30,000 AI jobs and a $5 billion economic impact by the same year (Onthewire). These ambitious targets will rely heavily on successful project implementations like the Salalah data centre. Keep an eye on announcements regarding construction progress and further investment rounds.

The bottom line

The £1 billion AI data centre deal in Salalah marks a significant milestone in Oman's journey to become a leading digital economy. This investment is set to bolster infrastructure, attract foreign capital, and create new opportunities for businesses and skilled workers across the region. It underscores Oman's strategic intent to diversify its economy and integrate advanced technology into its national framework.

This article is for information only and is not financial advice.