Oman’s space ambitions

take flight with new deal

Oman is venturing deep into the space sector. In April, the Ministry of Transport, Communications and Information Technology, the Environment Authority, and the Astronomical Solutions Company agreed to implement a project for astronomical observatories and ground stations in the Western Hajar Starlight Reserve in A’Dakhiliyah Governorate.

The initiative is being developed within a technological sandbox framework aimed at supporting the growth of Oman’s space sector and scientific research. The programme establishes coordination mechanisms among participating entities to deliver the project while adhering to environmental standards, including measures to limit light pollution and preserve the reserve’s natural conditions.

The project will include advanced observatories and facilities for space communications and satellite tracking, leveraging the area’s clear skies and low levels of artificial light. These conditions are expected to support astronomical observation, research activities, and technical experimentation.

Under the agreement, the Environment Authority will oversee environmental compliance and site allocation, while the ministry will manage technical aspects and telecommunications coordination. Astronomical Solutions Company will be responsible for design, construction, and operations, as well as developing partnerships and attracting investment.

The project aligns with Oman’s Space Sector Programme (2023–2033) and broader efforts to support innovation, investment, and research capacity, while also contributing to emerging areas such as scientific tourism.

RENEWABLE ENERGY INVESTMENTS

Oman’s Authority for Public Services Regulation (APSR) has outlined plans to expand investment and strengthen service delivery across the country’s regulated sectors, with total expected investments projected to reach OMR 8.8 billion during the 11th Five-Year Plan (2026–2030), up from approximately OMR 3.4 billion in 2021–2025. The electricity sector is expected to account for the largest share (OMR 7 billion), followed by water and wastewater (OMR 1.3 billion) and gas transmission (OMR 500 million).

As part of this strategy, APSR announced three new projects: continuous renewable energy production, battery energy storage systems (BESS), and demand response management, all aimed at improving grid stability and energy efficiency. Renewable energy accounted for 9.46% of total electricity production in 2025, up from 1.95% in 2021.

Over the past five years, APSR has implemented an integrated regulatory framework, including 17 regulations, 14 licences, and 15 subscriber rights. Digital transformation has reached 100% across services, while smart meter adoption stands at 99% in water and 80% in electricity.

Sector growth reflects broader economic expansion, with electricity consumption rising 27% and subscriber numbers increasing 14% between 2021 and 2025. In the water sector, consumption grew by 13%, with subscriber numbers up 12%.

ECONOMIC FREEDOM INDEX

Oman improved its position in the 2026 Index of Economic Freedom, published by The Heritage Foundation, rising 19 places to rank 39th globally, compared to 58th in 2025.

The index evaluates 176 economies across 12 indicators grouped into four categories: rule of law, government size, regulatory efficiency, and open markets. It assesses economic freedom on a scale of 0 to 100, with higher scores indicating stronger performance.

Oman’s overall score increased to 68.5 in 2026 – its highest level in five years – maintaining its classification as a “fairly free” economy and exceeding both global and regional averages.

The most notable improvement was in fiscal health, where Oman’s score rose from 63.2 in 2025 to 97.5 in 2026, supported by a reduction in the public debt-to-GDP ratio and the achievement of a budget surplus. The country also recorded strong results in trade freedom (78.4) and government spending (74.7).

In addition, Oman maintained stable scores in several areas, including tax burden (97.6), investment freedom (70), and financial freedom (60).

The index highlights broader correlations between economic freedom and indicators such as economic growth, income levels, and overall development outcomes. The UAE led the region, with a global ranking of 23^rd, followed by Qatar at 31^st – placing Oman in third place.

Singapore was ranked first globally, followed by Switzerland and Ireland.

NEW ITC LAUNCHED

The Ministry of Heritage and Tourism and the Oman Tourism Development Company (Omran Group) agreed to develop an integrated tourism complex (ITC) in Al Bustan area, Governorate of Muscat worth OMR 150 million. The 138,000-square-metre project is scheduled for completion in four years.

The project lies at the centre of Muscat Governorate, lending strong backing to tourism facilities in the area. It complements the geography of Muscat and its mountainous landscape, said heritage and tourism minister Sayyid Ibrahim bin Said Al Busaidi, adding that a distinctive feature of the facility will be a marina that will enhance yacht tourism. The project seeks to provide an integrated destination under the management of global operator Four Seasons. It comprises a 200-room world-class hotel, 91 branded luxury freehold residential units, and advanced infrastructure.

The Ministry of Transport, Communications and Information Technology also issued 12 licences to 11 companies during the past year for the management and operation of maritime berths intended for tourism and commercial purposes.

The initiative aligns with the ministry's ongoing efforts to regulate the port and maritime berth sector in Oman, elevating quality standards and ensuring compliance with maritime safety requirements. The ministry aims to enhance the regulation of the ports and maritime berths sector while upgrading service quality in accordance with the highest international maritime safety standards.