The Omani startup ecosystem is promising, supported by strategic investments, government initiatives, and a favourable business environment. As the e-commerce, clean technology, and fintech sectors continue to evolve, they present significant opportunities for innovation and growth.
With a focus on sustainability and financial inclusion, Oman is positioning itself as a hub for cutting-edge startups that can drive economic progress and contribute to global technological advancements.
- The Omani startup ecosystem was valued at $301 million in 2023, as highlighted in a comprehensive report by The Startup Genome, a global startup research organization.
- This valuation underscores the significant growth and potential within Oman’s burgeoning startup landscape, driven by key industries such as e-commerce, clean technology, and financial technology (fintech).
- Despite its growth, there are opportunities and challenges in Oman’s startup ecosystem that need to be navigated strategically.
Muscat is emerging as a vibrant hub for startups, driven by local and international venture capital funds, angel investors, and government initiatives.
The city’s business-friendly environment, coupled with a wealth of engineering and business graduates possessing entrepreneurial mindsets, creates a fertile ground for innovation and growth.
The diverse talent pool in Muscat includes software developers, marketers, designers, and business strategists, all contributing to the dynamic startup ecosystem.
E-commerce: A Booming Market
E-commerce has emerged as one of the most lucrative sectors for startups and investors in Oman.
- The Startup Genome report projects the Omani e-commerce market to reach a staggering $868 million by 2025.
- This anticipated growth is fueled by the increasing adoption of online shopping and digital payment solutions among Omani consumers.
- The $301 million startup landscape in Oman underscores the significant investment and entrepreneurial activity in the country.
The Oman Startup Ecosystem is gaining recognition as a burgeoning hub for innovation and entrepreneurial activity in the region. Omani entrepreneurs are increasingly making a mark in various sectors, showcasing their talent and resilience.
Startups in this sector are capitalizing on the growing demand for convenience and efficiency, offering a wide range of products and services through digital platforms.
As the market expands, it presents ample opportunities for new and existing businesses to innovate and capture a share of this lucrative market. As part of the MENA startup ecosystem, Oman plays a crucial role in regional innovation and economic diversification.
Startup Genome Report: Oman Startup Ecosystem Value and Funding
The startup ecosystem valuation in Oman has reached an impressive milestone, signalling robust growth. The rise of Omani startups signals a shift towards a more diversified and dynamic economic landscape.
Oman is positioning itself as the next big startup hub in the Middle East. The emergence of fintech startups in Oman is revolutionising the financial sector with cutting-edge solutions. Venture capital is becoming more accessible in Oman, providing essential funding for burgeoning startups.
The Promising Omani Startups Programme aims to support and accelerate the growth of high-potential ventures. With affordable talent readily available, Oman offers a competitive edge for startup founders.
The rapid expansion of e-commerce in Oman reflects the country’s adaptability to digital transformations. Innovations in clean energy technologies are a key focus for Omani startups, aligning with global sustainability trends.
- Ecosystem Value (H2 2021 – 2023): $343 million (Global Avg.: $29.4 billion)
- Total Early-Stage Funding (H2 2021 – 2023): $27 million (Global Avg.: $655 million)
- Ecosystem Value Growth (H2 2021 – H2 2023 vs. H2 2019 – H2 2021): 2% (Global Avg.: 46%)
- Number of Unicorns (H2 2021 – 2023): 0 (Global Avg.: 3)
- Median Seed Round (H2 2021 – 2023): $200,000 (Global Avg.: $985,000)
- Median Series A Round (H2 2021 – 2023): $1.6 million (Global Avg.: $7.5 million)
- Software Engineer Salary (2023): $33,000 (Global Avg.: $47,000)
- Early-Stage Funding Growth (2020 – 21 vs. 2022 – 23): 8 (Scale of 1 to 10)
- Total VC Funding (2019 – 2023): $38 million (Global Avg.: $4.6 billion)
- Time to Exit (2019 – 2023): 4 years (Global Avg.: 10 years)
- Exit Amount (2019 – 2023): $40 million (Global Avg.: $8.9 billion)
- Exit Count (#) (2019 – 2023): 4 (Global Avg.: 80)
Clean Technology: Leading the Charge Towards Sustainability
Oman is making significant strides in the clean technology sector, particularly in green hydrogen. The nation has set an ambitious target of achieving Net Zero emissions by 2050, driving investments in clean energy.
- A remarkable $140 billion is earmarked for the green hydrogen sector alone.
- This substantial investment underscores Oman’s commitment to sustainable energy solutions and its vision for a greener future.
Startups in the clean tech sector are poised to benefit from this influx of funding, with opportunities to develop innovative solutions that contribute to Oman’s environmental goals. The focus on clean technology not only supports the global sustainability agenda but also positions Oman as a leader in the green energy revolution.
Fintech: Accelerating Financial Innovation
The fintech sector in Oman is witnessing robust growth, thanks to active support from the Central Bank of Oman (CBO). In collaboration with Omantel, CBO has launched fintech accelerators designed to nurture and develop promising financial startups.
These accelerators provide comprehensive support through mentorship, training, networking, and fundraising assistance. From 2018 to 2022, venture capital funding in tech startups reached $28 million, reflecting the increasing investor confidence in the fintech space.
By fostering a conducive environment for financial innovation, Oman is encouraging the development of solutions that enhance financial inclusion and streamline financial services for its population.
Supportive Infrastructure and Affordable Talent
Oman ranks among the top ten countries in the region for affordable talent and funding, as per the report. This ranking highlights the availability of skilled professionals at competitive costs, which is a critical factor for startups seeking to build and scale their businesses. The combination of affordable talent and accessible funding creates a fertile ground for startups to thrive, attracting both local and international investors to the Omani market.
Sub-Sector Strengths
Cleantech
- Oman is set to invest $30 billion to become the world’s largest green hydrogen hub.
The Green Mobility program aims for net zero carbon emissions by 2050. In 2024, UAE energy giant ADNOC, along with award-winning Omani carbon removal company 44.01, MASDAR, and FNRC, completed a joint mineralization project in Al Fujairah.
Industry 4.0
Oman is making significant strides in Industry 4.0 and digital transformation, with an expected market size of $3.5 billion in the next five years.
The sector has the highest amount of funds raised and the largest number of early- and late-stage companies. In 2024, the Oman Investment Authority (OIA) announced plans to invest in global semiconductor manufacturing companies.
Construction Tech company Innotech secured $500,000 in January 2024 during the Beban TV show, the region’s first private-public investment platform.
Fintech
Muscat fosters active collaboration between regulators, experts, and leaders. The Central Bank of Oman (CBO) and ITHCA signed a collaboration agreement in January 2024 to support fintech growth.
In 2023, the CBO launched the Fintech Framework and Roadmap to drive innovation. Fintech companies like Mamum and Triterras partnered in December 2023 to enhance trade finance and short-term lending in Oman.
Digital Coin Company won the ITHCA Pitch Battle Competition 2023 for its finance management app. In 2024, Forbes ranked Thawani among the top 50 strongest fintech companies in the Middle East.
Government Initiatives: Promoting Innovation and Competitiveness
In 2022, the Omani government launched the Programme for Promising Omani Startups, reflecting its commitment to advancing local capabilities in innovation and creativity.
This initiative aims to enhance the competitiveness of the Omani economy by supporting the development of innovative startups.
The program provides startup owners with essential resources and facilitates local and global investments. By creating a supportive ecosystem, the government is encouraging entrepreneurship and innovation across various sectors.
Reasons to Move Your Startup to Muscat
Strategic Location
Muscat’s strategic location and Oman’s neutral political environment make it an ideal hub for international trade and commerce. Situated on the Arabian Sea, it serves as a prime hub for shipping and air freight, with heavily invested transportation infrastructure, making it a gateway to Asia, Africa, and the Middle East.
Business-Friendly Environment
Oman’s free-trade zones, including Duqm Free Zone, Sohar Free Zone, Salalah Free Zone, Maziona Free Zone, Innovation Park Muscat, and Knowledge Oasis Muscat, offer tax exemptions for investors and 100% foreign ownership.
The country is developing incentives for foreign investors, including tax and fee incentives, permissions to invest in new industries, lower government fees, expanded land use, and increased access to capital for qualifying companies.
Dedicated Support
Muscat boasts a rich network of startup support, including incubators, accelerators, educational institutions, government entities, business councils, and investors.
The Rising Omani Startups Program hosted the Investment and Startup Summit in December 2023 to promote technology and innovation startup growth.
In September 2023, the Authority for Small and Medium Enterprises Development launched the Sadder training program to enhance SMEs’ global presence and boost Omani exports.
Legal and Regulatory Support
The Programme for Promising Omani Startups also focuses on establishing legal and regulatory frameworks that foster the growth of emerging startups.
This aspect of the program ensures that startups operate in a conducive environment, with clear guidelines and support from government entities.
The collaborative effort includes key organizations such as the Authority for Small and Medium Enterprise Development (ASMED), the Ministry of Higher Education, Research and Innovation, the Ministry of Transport, Communications and Information Technology, the Ministry of Economy, and the Oman Information and Communication Technologies Group (ITHCA).
Muscat: Emerging Hub for MENA Region Businesses
Muscat is rapidly establishing itself as a major hub for businesses in the Middle East and North Africa (MENA) region.
According to a recent analysis by Startup Genome, the Omani capital boasts an ecosystem valued at approximately $343 million in 2024.
This vibrant ecosystem has earned Muscat recognition among the top 10 ecosystems for affordable talent, the top 15 for optimizing investment returns, and the top 15 for knowledge.
A Thriving Startup Ecosystem
The foundation of Muscat’s burgeoning business environment lies in the synergistic efforts of regional and global venture capital firms, angel investors, and government programs. These elements collectively create a dynamic startup climate.
The city is home to a wealth of talented, entrepreneurially-minded graduates in engineering and business, who bring diverse expertise to the table.
This talent pool includes marketers, designers, software developers, and business strategists, all contributing to a robust and favourable business environment.
Oman’s Vision 2040: A Blueprint for Diversification
Oman’s Vision 2040 is a strategic initiative aimed at reducing the country’s dependence on oil and fostering a diversified, sustainable economy.
Startup Genome highlights that this vision is supported by $39 billion in investments and the development of 6,500 industrial projects expected to create 270,000 new jobs.
The Oman 2040 initiative focuses on identifying key industries for development, enhancing competitiveness, and encouraging innovation.
The programs under Vision 2040 focus on fostering innovation, enhancing competitiveness, and identifying key sectors for development.
Special Economic Zones, Industrial Zones, and Logistics Zones are established to facilitate trade and attract investment, with the Duqm Free Zone standing out as the flagship logistics project.
The zone boasts a deep-sea port, airport, and a variety of industrial and commercial facilities.
Strategic Investments and Initiatives
In April 2024, the Supervisory Committee of the Promising Omani Startups Programme announced the launch of a venture capital (VC) fund to empower entrepreneurs, attract investments, and support tech-based companies.
- The Oman Future Fund, with a capital of $5.2 billion over five years, aims to attract foreign investment and boost local SMEs.
- Additionally, Abu Dhabi’s ADQ and the Omani Investment Authority launched the $180 million Jasoor Fund, focused on bolstering the digital economy through identified investment opportunities worth $8 billion in Oman.
Key sectors and growth potential in Oman include technology, e-commerce, and clean energy, among others. Startup accelerators in Oman provide vital support and resources to help new ventures scale rapidly.
In April 2024, Asyad Group, an integrated logistics provider, partnered with Omantel to launch an innovative accelerator program aimed at empowering local tech startups in the logistics industry.
Furthermore, the Promising Omani Startups Forum held in Muscat in December 2023 drew 1,500 participants, showcasing the growing interest in Oman’s startup ecosystem.
The Rising Omani Startups Programme
The Rising Omani Startups Programme is a three-year national initiative aimed at stimulating the ecosystem of emerging startups based on advanced technology and innovation.
- It focuses on spreading the culture of startups in educational institutions, enhancing community awareness of their importance, and elevating Omani startups to regional and global markets.
- The program’s three main pillars are capacity building, financing and investing, and a supportive regulatory framework. Oman is becoming a top destination for entrepreneurs in MENA, offering a conducive environment for innovation.
Authority for SME Development
The Authority for SME Development has registered over 100,000 SMEs and startups. It offers six incubation programs to empower innovation- and technology-based startups, supports youth orientation towards entrepreneurship, and provides funding to ensure the continuity of SMEs.
Oman Investment Authority (OIA)
The OIA, Oman’s investment arm, manages and invests state funds and assets to advance economic sectors. In 2022, it spent 187 million OMR on over 8,000 SMEs and startups and invests in more than 40 countries worldwide.
The Ministry of Transport, Communications and Information Technology
The Ministry aims to make transport and logistics the second source of national income and rank within the top 10 in logistics performance globally by 2040. It formulates and implements digital strategies and programs.
The Ministry of Higher Education Research and Innovation (MOHERI)
MOHERI envisions comprehensive higher education, sustainable learning, and scientific research leading to a knowledge society and competitive national capabilities. It offers opportunities in entrepreneurship education, including workshops and dedicated university programs.
Omantel Innovation Lab
Omantel Innovation Labs leverage Omantel’s expertise, reach, partnerships, and access to technology to promote innovation and entrepreneurship in new and emerging technologies.
Oman Future Fund
The Oman Future Fund is a $200 million initiative aimed at driving economic diversification and promoting sustainable development. It focuses on high-growth sectors, including technology, renewable energy, and healthcare, supporting Oman’s Vision 2040.
Key Developments in Muscat’s Startup Scene
A significant milestone in Muscat’s startup ecosystem occurred last month when the Ministry of Transport, Communications, and Information Technology signed an agreement with Al-Jabr MENA to operate the Oman Startup Platform (OSH Platform).
This agreement was signed at the COMEX 2024 exhibition and represents a major step forward in boosting the tech startup ecosystem.
- The OSH Platform serves as a comprehensive resource for startups, providing a venue where companies can connect with funders, advisors, and fellow entrepreneurs.
- It also offers a detailed overview of the ecosystem, outlining the needs of startups and listing related activities and events.
The OSH Platform currently supports 167 businesses and 47 incubators, accelerators, and growth sponsors, backed by over $330 million in funding.
In April 2024, the Promising Omani Startups Program Supervisory Committee announced the establishment of the Oman Future Fund, a new venture capital fund that will inject $5.2 billion into the ecosystem over five years.
This fund aims to support local SMEs and attract foreign investment. Additionally, the Oman Investment Authority and Abu Dhabi’s ADQ launched the $180 million Jasoor Fund, which seeks to advance the digital economy by funding $8 billion worth of technology-related opportunities in Oman.
Collaborative Efforts to Boost Local Tech Companies
Collaboration between key players in Oman’s business landscape is further driving growth.
Asyad Group, a leading logistics provider, and Omantel, the national telecom company, have partnered to develop an accelerator program aimed at supporting local tech companies in the logistics industry.
This initiative underscores the collaborative spirit within Muscat’s business community, fostering innovation and growth in critical sectors.
Promising Omani Businesses Forum: A Showcase of Dynamism
The dynamic and supportive environment for businesses in Oman was on full display at the Promising Omani Businesses Forum held in December 2023 in Muscat.
The event, which attracted 1,500 attendees, highlighted the vibrant atmosphere and the myriad opportunities available for entrepreneurs and businesses in Oman.
The startup success rate in Oman is on the rise, thanks to supportive policies and a growing entrepreneurial culture. The Omani market growth potential is attracting investors and entrepreneurs from around the globe.
Strategic Initiatives Driving Growth
Oman’s strategic initiatives are driving significant growth and transformation within the country’s business landscape.
The Vision 2040 plan, with its emphasis on diversification and sustainability, is at the heart of this transformation. The development of Special Economic Zones and Industrial and Logistics Zones is a critical component of this vision, providing the necessary infrastructure and incentives to attract investment and foster innovation.
The Duqm Free Zone stands out as a premier logistics project, featuring a deep-sea port, an airport, and extensive industrial and commercial facilities. This project exemplifies Oman’s commitment to creating world-class infrastructure to support its economic diversification efforts.
Government and Private Sector Collaboration
The collaboration between the government and the private sector is a key driver of Muscat’s success as a business hub.
The partnership between the Ministry of Transport, Communications, and Information Technology and Al-Jabr MENA to operate the Oman Startup Platform is a prime example of this collaborative approach.
This platform not only provides startups with access to funding and resources but also fosters a sense of community and collaboration among entrepreneurs.
The establishment of the Oman Future Fund and the Jasoor Fund further underscores the commitment of both the government and the private sector to support the growth of the startup ecosystem.
These funds provide much-needed capital to local SMEs and attract foreign investment, creating a fertile environment for innovation and growth.
Building a Knowledge-Based Economy
Oman’s efforts to build a knowledge-based economy are also evident in its focus on education and talent development.
The country is home to a growing number of talented, entrepreneurially-minded graduates in engineering and business. These graduates bring diverse expertise to the table, including marketing, design, software development, and business strategy.
This talent pool is a key asset for Muscat’s business ecosystem, providing the skills and knowledge needed to drive innovation and growth. Numerous startup opportunities in Oman are emerging, making it an attractive destination for new businesses.
Looking Ahead: A Promising Future for Muscat
By fostering a robust startup ecosystem, Oman is not only boosting its economic landscape but also inspiring a culture of entrepreneurship and innovation.
The comprehensive support system, including accelerators, funding opportunities, and regulatory frameworks, ensures that startups have the necessary tools to succeed. The latest startup ecosystem report highlights Oman’s strengths and opportunities for further development.
Muscat’s vibrant startup ecosystem, supported by a combination of regional and global venture capital firms, angel investors, and government programs, is creating a dynamic and supportive environment for entrepreneurs.
The strategic initiatives outlined in Oman’s Vision 2040, including the development of Special Economic Zones and Industrial and Logistics Zones, are providing the necessary infrastructure and incentives to attract investment and foster innovation.
With its focus on education and talent development, Oman is building a knowledge-based economy that will support the continued growth and success of Muscat as a business hub.
