Ro15mn allocated for AI projects
The Ministry of Economy has earmarked a development budget of Ro15mn for 2025 to advance artificial intelligence (AI) projects across the sultanate. Of this, Ro10mn is allocated to government agencies and the remaining Ro5mn directed towards projects in the governorates.
The funding was announced by H E Dr Said bin Mohammed al Saqri, Minister of Economy, at a forum called Artificial Intelligence Economics Initiative 2024 held on Sunday.
The forum, a collaborative effort between the Ministry of Economy and the Ministry of Transport, Communications and Information Technology (MTCIT), aimed to foster local innovation by providing a platform for Omani companies specialising in AI.
It sought to enhance collaboration between the government and private sectors, leveraging expertise of the latter to increase the local value derived from national projects and acquaint government bodies with cutting-edge AI technologies.
H H Dr Kamil bin Fahd bin Mahmoud al Said, SecretaryGeneral of Secretariat-general of the Council of Ministers, graced the forum's opening ceremony.
The event underscored Oman's commitment to integrating AI in enhancing the national economy and governance.
H E Ali al Shidhani, Undersecretary for Communications and Information Technology in MTCIT, highlighted the fact that the private sector's investment in AI reached Ro30mn in 2023. This demonstrates the growing interest and confidence in AI'S potential to transform various industries.
In his address, H E Saqri detailed the launch of the ‘National Initiative to Empower the National Economy Enhanced with Artificial Intelligence’ in June 2023. This initiative is part of the 10th Five-year Plan aiming to embed AI applications in diversification sectors to foster economic growth and innovation. An initial Ro10mn was approved for the initiative's projects in 2024.
H E Saqri highlighted the significance of aligning national efforts with global technological advancements to make the Omani economy more adaptable and investment-friendly. He pointed out that AI is projected to contribute up to Us$23tn to the global economy by 2025, with Oman poised to capitalise on this opportunity through product improvements and enhanced consumer demand.
The minister also reflected on the crucial role of AI in the sultanate's economic development, highlighting its potential to create new investment opportunities and job prospects across multiple sectors. The 10th Five-year Plan prioritises AI for its critical contribution to economic growth, aiming to boost the digital economy's GDP share to about 10% by 2040.