Oman targets cyber investment through six projects

Oman has opened a new investment push in cybersecurity, placing six strategic projects at the centre of a plan to build local capability, attract foreign capital and protect the digital infrastructure underpinning its economic diversification drive.

The programme comes as the sultanate’s cybersecurity market is forecast to expand from $135.33 million in 2025 to $146.12 million in 2026, before reaching $214.27 million by 2031. That trajectory reflects an expected compound annual growth rate of nearly 8 per cent, driven by sovereign cloud adoption, data protection rules, port automation, open-banking services, industrial digitisation and managed security operations.

The investment drive is being led through Oman’s cybersecurity industry programme, which sits within the National Digital Economy Programme and supports Oman Vision 2040. Its stated ambition is to develop a specialised cybersecurity industry that can create jobs, support small and medium-sized enterprises, increase non-oil economic contribution and strengthen national readiness against cyber threats.

The six areas being promoted cover skills development, start-up and SME support, innovation, investor incentives, export of services and expertise, and market awareness. Opportunities being presented to the private sector include firewall laboratories, cyber insurance, secure recovery and disposal of electronic devices, and advanced research facilities such as a quantum cybersecurity centre. The proposed quantum centre alone is expected to require investment of $5 million to $15 million, reflecting concern that future computing capacity could undermine current encryption systems.

Officials see the plan as both a national security requirement and an industrial policy. Oman is positioning itself as a regional cybersecurity hub at a time when government services, banks, telecom operators, logistics groups, hospitals and energy companies are moving deeper into cloud platforms, connected devices and digital payment systems. The shift has widened the attack surface for ransomware, phishing, identity theft, data breaches and operational technology intrusions.

The market forecast shows services already dominating spending, with managed security, consulting and monitoring contracts expected to remain strong as companies struggle to hire enough qualified cyber professionals. Cloud security is set to grow faster than older on-premise deployments as sovereign cloud zones mature, while small and medium-sized businesses are expected to lift spending as digital invoicing, e-commerce and online customer services become more common.

Oman’s legislative framework has also been tightened. Sultan Haitham bin Tarik issued Royal Decree No 61/2026 this month promulgating a new Law on Combating Cybercrime, replacing the 2011 law. The move gives the investment programme a stronger regulatory backdrop as authorities seek to protect citizens, institutions and critical systems from evolving digital offences.

The country already has several institutional advantages. Oman National CERT oversees implementation and follow-up of cybersecurity industry initiatives, while Muscat hosts the ITU Arab Regional Cybersecurity Centre. The sultanate has ranked high in global cybersecurity assessments and has been promoted as a regional base for training, incident response and international cooperation.

The Hadatha Centre for Cybersecurity Industry has become a key part of the talent pipeline. Centres hosted by academic institutions are intended to link students, researchers, government bodies and private companies, with emphasis on cyber labs, simulation, product testing and entrepreneurship. The initiative reflects a broader attempt to move from importing services to producing local tools and exportable expertise.

Investors are being offered a market shaped by regulation, government demand and gaps in local supply. Oman has only a limited number of local and foreign cyber-insurance providers, while demand for data recovery and secure disposal services is expected to increase as electronic waste grows and organisations face tougher data protection obligations. Investment documents identified Muscat and Sohar as potential locations for cybersecurity labs, citing proximity to government entities, ports, free zones, data centres and regional markets.