Oman AI Processor Chips Market Size and Forecast by Type, Node Type, End User Application, and Distribution Channel: 2019-2033

Oman AI Processor Chips Market Outlook

Oman’s bold venture into the AI processor chips market is rapidly transforming the Sultanate into a key regional innovation hub. With the recent Memorandum of Understanding (MoU) between the Ministry of Transport, Communications, and Information Technology (MoTCIT) and AONH Private Holdings, Oman is firmly positioning itself within the global semiconductor supply chain, with a specialized focus on next-generation AI processors. This initiative, rooted in Oman Vision 2040, emphasizes digital transformation, economic diversification, and sovereign technological capability—particularly in high-performance chip design and fabrication.

According to David Gomes, Manager – Semiconductor, the AI chip segment in Oman is poised to benefit from the broader surge in the GCC semiconductor market expected by 2033, mainly driven by AI acceleration, edge computing, 5G, IoT, and autonomous systems. Oman’s initiative will not only center on AI training processors and edge AI inference chips, but also explore custom ASICs for smart mobility, industrial AI applications, and cloud data centers. The project, based in the Salalah Free Zone, will enjoy key strategic advantages such as proximity to global shipping lanes, duty-free trade benefits, and integration with Oman’s digital industrial policy framework.

Ali Steve Chao, Chairman of AONH Private Holdings, stated that Oman’s stable governance, streamlined regulatory framework, and access to both Eastern and Western markets make it an ideal launchpad for AI semiconductor development. With support from regional sovereign wealth funds and international investors, the capital infusion is expected to fast-track not only fabrication facilities but also design and validation labs. The chips being developed are expected to support a wide range of use cases including generative AI models, LLM training, computer vision, robotics, and autonomous navigation.

In parallel, companies such as Kaynes Semicon, a subsidiary of Kaynes Technology India, have launched Oman’s first chip design center in Muscat with a specific focus on VLSI architecture, RTL design, and verification, signaling the growth of a full-stack AI chip ecosystem in the region. Backed by the Ministry of Labour and fully funded by the government, this initiative aims to train 80–100 Omani engineers annually in cutting-edge AI semiconductor design, supporting the creation of skilled domestic talent capable of contributing to high-value semiconductor R&D.

Oman’s strategy to attract AI chip design experts from Taiwan, South Korea, and Japan underlines a long-term ambition to become self-reliant in custom AI silicon development while also serving as a contract design partner for global AI hardware giants. With dedicated infrastructure for cleanroom fabrication, photolithography, AI optimization frameworks, and thermal simulation labs, Oman is building both hard and soft capital in semiconductor IP development. Early indications suggest the potential production of AI chiplets and advanced packaging for neural networks by 2027–2028, aligned with the roadmap to fabricate locally designed chips by the end of the decade.

Regulatory frameworks are also evolving in Oman’s favor. Through the Digital Industry Program under Vision 2040, there is increasing support for R&D tax credits, IP protection policies, and incentives for foreign semiconductor talent relocation. In this context, Oman’s AI processor chip initiative isn’t just an industrial bet—it’s a national innovation imperative that integrates education, policy, investment, and global partnerships to leapfrog into the AI hardware race.

Experts in the field observe that global demand for AI-optimized processors—from transformer-based models to realtime inference at the edge—is rapidly outstripping supply, creating a strategic window for emerging hubs like Oman to differentiate with custom, power-efficient designs for regional use cases. Particularly in sectors like smart cities, energy, security, and digital healthcare, Oman has the opportunity to develop localized AI processors with edge-centric designs tailored to Arabic NLP, regional data patterns, and climate-adapted algorithms.

The Salalah Free Zone is being positioned as the central node of this effort, with land earmarked for foundry setups, a fabless startup accelerator, and university-led chip design incubators. The government’s backing signals a sustained commitment to supporting the AI processor chip value chain—from silicon to system integration. As AI adoption accelerates across GCC countries, Oman’s early investment in domestic AI chip capability will likely become a strategic differentiator in regional AI infrastructure planning.

Author: David Gomes (Manager – Semiconductor)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Oman AI Processor Chips Market Scope