Opinion-From AI to E-Commerce: How Oman is embracing the digital age
Published: 05:11 PM,Nov 02,2024 | EDITED : 12:11 PM,Nov 04,2024
Oman’s National Programme for the Digital Economy outlines a transformative vision for the future, with clear and ambitious goals for boosting the country’s economic growth through digital innovation. The strategic roadmap aims to increase the contribution of the digital economy to Oman’s GDP, reaching 10% by 2040. This initiative is more than just a technical upgrade—it represents a fundamental shift in how the nation will operate, engage with technology, and participate in the global economy.
One of the most significant insights from the program is the projected rise in the digital economy’s contribution to GDP over the next two decades. Starting at 2% by 2025, the program anticipates a leap to 5% by 2030 and eventually 10% by 2040. This gradual growth indicates a steady, methodical approach to integrating digital technologies across sectors, ensuring that each phase is carefully aligned with national priorities.
However, the bulk of this growth is forecasted to occur after 2030, signaling that Oman is focusing on building a strong foundation in the first phase. This requires ensuring the readiness of key sectors such as government, education, and industry to fully embrace and leverage digital solutions in the long term. The timeline is ambitious but necessary, given the rapid pace at which global digital transformations are unfolding.
Pillars of execution
The programme is built on five primary initiatives that will drive Oman’s digital transformation:
• Artificial Intelligence and Advanced Technologies Programme: AI is no longer just a buzzword—it is the backbone of future digital economies. By prioritizing AI and advanced technologies, Oman is positioning itself at the forefront of global innovation. This move is crucial for enhancing efficiency, solving complex societal challenges, and enabling smarter decision-making across all sectors.
• Digital Government Transformation (2021-2025): This program focuses on modernizing government operations through digitization, enhancing service delivery, and boosting transparency. Efficient governance, powered by digital tools, will streamline processes and make government more accessible to citizens and businesses.
• Digital Industry Programme: A digitally enabled industrial sector is essential for improving productivity and innovation. This initiative underscores Oman’s intention to integrate digital technologies in manufacturing and production, leading to greater efficiency and opening new markets for Omani products.
• Electronic Commerce Programme: As the global marketplace shifts online, e-commerce becomes an indispensable part of any modern economy. By fostering a robust e-commerce ecosystem, Oman can support small and medium enterprises (SMEs) and empower businesses to reach broader, global audiences.
• Space Programme: Although still emerging, Oman’s focus on space technologies highlights the country’s long-term commitment to pioneering in fields like satellite communication and data technologies. A strong space sector could serve as a critical enabler for future tech-driven economic activities.
Core focus areas: Government, Business, and Society
The digital transformation plan is built on three interconnected pillars: digital government, digital business, and digital society. These pillars recognize that successful transformation requires a unified approach across all sectors.
• The government’s role is to lead by example, transforming public services through digitization and making interactions with the state more seamless and efficient.
• The business sector must fully adopt digital tools to remain competitive in both local and international markets. Omani companies, especially SMEs, will benefit from increased access to global markets and enhanced operational efficiency.
• A digitally empowered society is fundamental to the success of this transformation. Without widespread digital literacy, Oman risks leaving parts of its population behind. Ensuring that all citizens can participate in the digital economy is critical for fostering inclusive growth.
Challenges and Considerations
While the vision is inspiring, several challenges must be acknowledged to ensure successful implementation:
• Infrastructure Development: For Oman to meet its digital economy goals, the country must significantly invest in modern infrastructure, including 5G networks, cloud technologies, and AI-powered platforms. Without this foundation, the projected economic contributions may not materialize.
• Workforce Readiness: Digital transformation is as much about people as it is about technology. Oman needs to prioritize education and skills training to build a workforce capable of thriving in the new economy. Investment in STEM education, vocational training, and digital literacy will be critical to prepare Omani youth for the jobs of tomorrow.
• Global Competition: Oman’s digital economy will not evolve in isolation. Regional competitors, especially in the Gulf, are also rapidly advancing in areas like AI and e-commerce. Oman must create niche competitive advantages, such as sector-specific expertise or attractive investment climates, to stand out.
Oman’s National Programme for the Digital Economy is not just a technical upgrade—it is a strategic leap into a new era. The government’s commitment to driving digital transformation across sectors reflects a bold vision to ensure that Oman remains competitive and prosperous in an increasingly digital world. While the challenges are substantial, so too are the opportunities.
With careful planning, targeted investments, and a focus on building a digitally literate society, Oman is well-positioned to become a leader in the digital economy. The long-term benefits—economic growth, enhanced global competitiveness, and improved quality of life—make this a vision worth pursuing.
Qasim Al Maashani
The author is the head of Oman Observer's Business section
One of the most significant insights from the program is the projected rise in the digital economy’s contribution to GDP over the next two decades. Starting at 2% by 2025, the program anticipates a leap to 5% by 2030 and eventually 10% by 2040. This gradual growth indicates a steady, methodical approach to integrating digital technologies across sectors, ensuring that each phase is carefully aligned with national priorities.
However, the bulk of this growth is forecasted to occur after 2030, signaling that Oman is focusing on building a strong foundation in the first phase. This requires ensuring the readiness of key sectors such as government, education, and industry to fully embrace and leverage digital solutions in the long term. The timeline is ambitious but necessary, given the rapid pace at which global digital transformations are unfolding.
Pillars of execution
The programme is built on five primary initiatives that will drive Oman’s digital transformation:
• Artificial Intelligence and Advanced Technologies Programme: AI is no longer just a buzzword—it is the backbone of future digital economies. By prioritizing AI and advanced technologies, Oman is positioning itself at the forefront of global innovation. This move is crucial for enhancing efficiency, solving complex societal challenges, and enabling smarter decision-making across all sectors.
• Digital Government Transformation (2021-2025): This program focuses on modernizing government operations through digitization, enhancing service delivery, and boosting transparency. Efficient governance, powered by digital tools, will streamline processes and make government more accessible to citizens and businesses.
• Digital Industry Programme: A digitally enabled industrial sector is essential for improving productivity and innovation. This initiative underscores Oman’s intention to integrate digital technologies in manufacturing and production, leading to greater efficiency and opening new markets for Omani products.
• Electronic Commerce Programme: As the global marketplace shifts online, e-commerce becomes an indispensable part of any modern economy. By fostering a robust e-commerce ecosystem, Oman can support small and medium enterprises (SMEs) and empower businesses to reach broader, global audiences.
• Space Programme: Although still emerging, Oman’s focus on space technologies highlights the country’s long-term commitment to pioneering in fields like satellite communication and data technologies. A strong space sector could serve as a critical enabler for future tech-driven economic activities.
Core focus areas: Government, Business, and Society
The digital transformation plan is built on three interconnected pillars: digital government, digital business, and digital society. These pillars recognize that successful transformation requires a unified approach across all sectors.
• The government’s role is to lead by example, transforming public services through digitization and making interactions with the state more seamless and efficient.
• The business sector must fully adopt digital tools to remain competitive in both local and international markets. Omani companies, especially SMEs, will benefit from increased access to global markets and enhanced operational efficiency.
• A digitally empowered society is fundamental to the success of this transformation. Without widespread digital literacy, Oman risks leaving parts of its population behind. Ensuring that all citizens can participate in the digital economy is critical for fostering inclusive growth.
Challenges and Considerations
While the vision is inspiring, several challenges must be acknowledged to ensure successful implementation:
• Infrastructure Development: For Oman to meet its digital economy goals, the country must significantly invest in modern infrastructure, including 5G networks, cloud technologies, and AI-powered platforms. Without this foundation, the projected economic contributions may not materialize.
• Workforce Readiness: Digital transformation is as much about people as it is about technology. Oman needs to prioritize education and skills training to build a workforce capable of thriving in the new economy. Investment in STEM education, vocational training, and digital literacy will be critical to prepare Omani youth for the jobs of tomorrow.
• Global Competition: Oman’s digital economy will not evolve in isolation. Regional competitors, especially in the Gulf, are also rapidly advancing in areas like AI and e-commerce. Oman must create niche competitive advantages, such as sector-specific expertise or attractive investment climates, to stand out.
Oman’s National Programme for the Digital Economy is not just a technical upgrade—it is a strategic leap into a new era. The government’s commitment to driving digital transformation across sectors reflects a bold vision to ensure that Oman remains competitive and prosperous in an increasingly digital world. While the challenges are substantial, so too are the opportunities.
With careful planning, targeted investments, and a focus on building a digitally literate society, Oman is well-positioned to become a leader in the digital economy. The long-term benefits—economic growth, enhanced global competitiveness, and improved quality of life—make this a vision worth pursuing.
Qasim Al Maashani
The author is the head of Oman Observer's Business section