Market Trends of Oman ICT Industry
Consistent Digital Transformation Initiatives to Drive the Market
- Oman has been actively investing in its ICT infrastructure and digital capabilities to foster economic diversification and enhance its global competitiveness. The government has recognized the importance of ICT in driving economic growth, improving public services, and promoting innovation across sectors.
- Moreover, the Omani government has significantly driven digital transformation initiatives. It has implemented various policies and strategies to encourage the adoption of ICT solutions, including the National Digital Strategy and the Oman Vision 2040. These initiatives focus on enhancing digital infrastructure, promoting e-government services, and fostering innovation.
- For instance, in September 2022, the Ministry of Transport, Communications, and Information Technology (MTCIT) organized a joint meeting with governors to review the Government Digital Transformation Programme. The digital transformation initiative aims to empower the public sector to use innovation to deliver smart services, take preventative action, and give a seamless digital experience to the online community. In addition, in 2022, the sultanate declared its intention to invest OMR 170 million (USD 441.5 million) in the Digital Transformation Programme over the coming years.
- In addition, the Ministry of Transport, Communications, and Information Technology (MTCIT) in the National Digital Economy Program, under the digital economy targets in Oman Vision 2040, plans for digital economy contribution to GDP anticipated to rise from 3% in 2025 to 5% in 2030 and stand at 10% by 2040. This demonstrates the government's commitment to driving digital transformation and leveraging ICT as a catalyst for economic growth and diversification.
- Furthermore, Oman has significantly invested in developing robust ICT infrastructure, such as high-speed internet connectivity, fiber optic networks, and data centers. Moreover, in September 2022, the MTCIT intends to focus on several significant issues, including expanding data centers and cloud services and applying the Fourth Industrial Revolution technology to strengthen various economic sectors. In addition, these will help the sultanate draw in investments while boosting the digital content and cybersecurity industries. These infrastructure developments provide a strong foundation for digital transformation initiatives, enabling businesses and individuals to leverage advanced technologies effectively.
- Moreover, in December 2022, according to Kawthar Al Hinai, Digital Transformation Empowerment Leader at the National Programme for Digital Economy, under the Ministry of Transport, Communications, and Information Technology, about 80% of government services will be digitalized by 2025.
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SMEs to Witness Major Growth
- The small and medium enterprises landscape in the country is growing at a significant rate over the past few years owing to the increasing initiatives by the country's government to grow the SME culture and significant funding projects for the expansion of SMEs coupled with the growing financing from Various banks and government department.
- For instance, according to National Centre for Statistics and Information (NCSI) data, the number of SMEs registered with the Authority for Small and Medium Enterprises Development rose by 46.8% to reach 81,460 at the end of July 2022 compared to 55,491 during the same period in 2021. According to the report, the rise in registrations reflects the youth of Oman's interest in starting their projects at a time when statistics indicated a noticeable increase in economic activity as a result of the COVID-19 pandemic's effects and because the SMEs sector had been given attention by the various government agencies and local banks that provided financing for it.
- For instance, in November 2022, the Small and Medium Enterprises Development Authority (SMEDA) announced the launch of a public consultation on the strategy of the small and medium enterprises (SMEs) sector. The goals of the SME sector strategy are to concentrate on strengthening the entrepreneurial culture by increasing awareness, improving entrepreneurship skills, increasing the competitiveness and productivity of SMEs by building innovation and digital transformation capabilities, and developing a variety of financial tools for businesses while improving access to financing and foreign capital.
- Further, the country's government is offering significant funding to small and medium-sized enterprises, which in turn will drive the substantial growth of SMEs in the country coupled with the increase in demand for digitization among SMEs. For instance, according to a report published in the state-owned Oman News Agency, in 2022, Oman's Small and Medium Enterprises Development Fund (Inma) provided funding worth USD 52.13 million (OMR 20 million) to 144 small and medium enterprises. The funding would help SMEs grow and contribute to Oman's gross domestic product (GDP).
- In addition, market vendors are launching initiatives to support the digital transformation journey of small and medium enterprises by offering a range of software solutions based on Artificial intelligence, IoT, and cybersecurity. This is expected to increase the adoption of software solutions in the country's SME sector.
