A major factor in Oman’s forward-looking economic development strategy, the information and communications technology sector is playing a vital role in the modernization of the economy thanks to its position as a breeding ground for innovation. This has led to the sector experiencing significant growth, driven by a focus on digital transformation and the development of a smart society.
Not only is the government actively investing in infrastructure, promoting e-governance, and fostering innovation in areas like cybersecurity and artificial intelligence, but companies such as Ithca Group are ably supporting the digital revolution by enhancing networks and investing in a range of emerging technologies.
Founded in 2019, Ithca Group was created by the Oman Investment Authority with a clear mandate of enhancing strategic investments in the ICT sector.
“The OIA consolidated its investments under Ithca and tasked us with fostering synergy among portfolio companies and shaping a strategic investment framework. Our core mission is to enhance the sector’s contribution to GDP (gross domestic product) and job creation through targeted investments, while our strategy focuses on optimizing existing assets and identifying new investment opportunities to strengthen the sector,” explained Said al Mandhari, CEO of Ithca Group.
“Ithca’s portfolio consists of three pillars. The first is focused on infrastructure that serves as a foundation for technology development and enablement. Here, we have significantly invested in Oman Broadband, our open-access fiber- optic infrastructure company, and expanded our involvement in tower-sharing initiatives to support telecom growth.
“We are are investing in space communication infrastructure, submarine cables, and data centers in Oman. In space communication, our subsidiary Space Communication Technology is dedicated to launching Oman’s satellites on behalf of the government, providing services to various telecom players,” al Mandhari said.
“Our second pillar is focused on digital transformation and cloud services. In partnership with the Ministry of Transport, Communications and Information Technology, we bridge digital gaps by managing and commercializing government digital services through close cooperation with local companies. The third pillar is the most exciting and focuses on emerging technologies. We invested in five venture capital funds to support early-stage companies. On the other side, we have directly invested in 14 companies that are in the growth stage. The general idea is to cover the entire lifecycle from early stage to maturity. Once the companies that were initially supported by VCs reach the growth stage, Ithca invests directly to scale them beyond Oman into the Gulf Cooperation Council, regional and global markets,” he said.
Aside from investing in growth-stage companies, the group is also dedicated to financing and developing strategic projects that help develop new industry segments.
“We have invested in five different projects thus far, with the first one being semiconductors,” al Mandhari said. “We launched a semiconductor design company and partnered with an American company to build a design team in Oman. The second is AI. We developed strong AI capabilities, focusing on applications rather than large language models.
“The third is the Internet of Things. We made significant investments in IoT, enabling a local company to develop proprietary intenet protocols and solutions. The fourth is 3D printing, and we are leveraging this technology to reduce low-skill jobs and increase high-skill employment. Finally, we have drone manufacturing. We have heavily invested in this sector and recently launched our first production lines.
“Beyond these emerging sectors, we continue to support traditional fields such as software development and cybersecurity. Our goal is to expand Omani companies internationally while creating high-skilled job opportunities for youth, a key factor in economic growth.”
Highlighting the importance of the work carried out by Ithca Group, Abdullah al Harrasi, minister of information, underlined Oman’s push to embrace digital transformation.
“This is a key pillar of Oman’s development,” he emphasized. “The National Program for Digital Economy aims to increase the digital sector’s contribution to GDP from 2% in 2021 to 10% by 2040.”
“Investments in AI, big data analytics and automation have modernized public services, education and infrastructure, laying the groundwork for a fully connected society. The ministry is actively involved in implementing these digital advancements within the media sector, ensuring efficient content production, seamless digital broadcasting and enhanced accessibility for audiences worldwide,” al Harrasi said.
In addition to collaborating with the government to enhance Oman’s digital landscape, Ithca also works closely with the private sector. This has opened up opportunities for the company to work with global tech leaders and there is a concerted effort to explore potential partnerships with companies in Japan.
“A key mandate for us is attracting foreign technology investments, particularly from Japan, to bridge gaps in Oman’s tech sector,” al Mandhari said. “Rather than reinventing the wheel, we seek to leverage Japan’s advanced technologies. We offer Japanese companies two expansion paths: establishing operations in Oman through manufacturing, design or development, or using Oman as a regional hub. Ithca is the ideal partner, not only facilitating market entry but also coinvesting to ensure success. We are committed to supporting Japanese firms and welcome discussions on how we can drive regional expansion together.”
With Japan being a global leader in advanced technologies, cybersecurity and telecommunications, it is not just Ithca that is looking to explore opportunities with Japanese companies. The government in Oman is also determined to solidify its relationship with the country and will be showcasing the many opportunities available in the sultanate by attending the Osaka Expo.
“Oman’s participation in Expo 2025 further solidifies its global engagement strategy,” al Harrasi said. “Our pavilion will highlight the country’s commitment to sustainability, innovation and international cooperation, aligning with Expo 2025’s sub-theme of ‘Saving Lives.’
“This platform allows Oman to showcase its advancements in renewable energy, economic diversification and cultural heritage while strengthening its ties with Japan.”
Al Mandhari added: “I invite Japanese companies to explore opportunities in Oman as we offer two key advantages. One is skilled human capital, as we have a strong talent pool that is recognized across the region. Second is our strategic location, making us a prime logistics hub with excellent sea and air connectivity. I look forward to engaging with Japanese technology firms to build lasting partnerships.”
https://info.japantimes.co.jp/international-reports/pdf/20250625B-GI_Oman.pdf
https://global-insight.net/
