AI Regulation in Oman
Building a Trusted and Ethical Digital Future
Spearheaded by the Ministry of Transport, Communications and Information Technology (MTCIT), the Sultanate is systematically creating an environment where AI innovation can flourish, underpinned by robust ethical guidelines and strict data protection laws. This approach is critical for international organizations, as compliance is not just a legal necessity but a strategic differentiator for building trust in Oman’s rapidly expanding digital economy. The framework ensures that AI adoption supports economic growth while protecting citizens’ rights and data, aligning local laws like the Personal Data Protection Law (Royal Decree 6/2022) with international ethical standards.
Strategic Context: AI as an Economic Imperative
Oman's drive for structured AI oversight is fundamentally linked to its ambition to achieve economic diversification under Vision 2040. The nation seeks to transition towards a knowledge-based, diversified economy, with the digital sector playing a pivotal role.
Vision 2040: The Digital Goal
The National Digital Economy Programme has a clear, measurable objective: to increase the digital sector’s contribution to the nation's GDP from an estimated 3% by the end of 2025 to a commanding 10% by 2040. This goal is backed by significant governmental investment, with over OMR 60 million allocated to AI initiatives between 2021 and 2024, demonstrating long-term dedication.
The regulatory framework is essential to achieving Oman’s goal of reaching the global Top 20 across key digital metrics, building on its existing strategic advantage as a secure location for digital operations:
| Metric | Current Global Ranking (Approx.) | Target (2040) |
|---|---|---|
| Cybersecurity Readiness | 1st (High) | Maintain/Enhance |
| AI Government Readiness | 45th | Top 20 |
| E-Government Development | 41st | Top 20 |
The National Programme for AI (2024-2026)
The National Programme for Artificial Intelligence and Advanced Digital Technologies acts as the executive roadmap, aiming to adopt AI across economic sectors, localize AI technologies, and achieve effective governance. Key initiatives, such as the development of the Omani language model "Mu’een AI" (Oman GPT), underscore the need for secure and ethically sourced data, making strict governance a prerequisite for national strategic projects.
The Foundational Legal and Ethical Frameworks
Oman's governance is built upon two complementary legal instruments: one for data privacy and one for AI ethics.
Pillar 1: The Personal Data Protection Law (PDPL) – Royal Decree 6/2022
The PDPL is the cornerstone for all AI data processing. Since AI systems are entirely dependent on data, developers and controllers must ensure compliance with this law, particularly regarding data acquisition and use. (See Royal Decree 6/2022)
Key Requirements for AI Developers:
- Explicit Consent: Lawful processing of personal data requires the explicit consent of the data subject.
- Data Subject Rights: Organizations must respect the individual's right to revoke consent, request the correction or erasure of their data, and obtain a copy of their processed data.
- Breach Notification: Controllers are obligated to establish detailed Incident Reporting and Breach Management Workflows and notify the data subject of any infringement.
- Automated Decision-Making (ADM): While the full Executive Regulation (2024) is anticipated to provide further clarity, legal analysis suggests a strong push toward transparency. Organizations using AI for profiling or automated decision-making are expected to ensure transparency and potentially a right to object or demand human review, aligning with global trends.
Pillar 2: The 2025 General Policy for the Safe and Ethical Use of AI Systems
This policy establishes the moral and operational baseline for all AI development in Oman. It mandates that organizations go beyond the legal minimums of the PDPL and ensure ethical deployment
Core Ethical Requirements for AI Systems:
| Ethical Commitment | Practical Implementation for Organizations |
|---|---|
| Human-Centred AI | Integrate robust human oversight into all AI operations, ensuring fairness and inclusiveness. |
| Transparency & Explainability | Provide clear and transparent information about how AI systems are used and their potential impact. |
| Accountability | Establish formal mechanisms for accountability, reporting of violations, and damage compensation. |
| Data Quality & Accuracy | Actively ensure that AI training data avoids inherent biases and errors. |
Global Alignment for Trust
Oman is demonstrating its commitment to the highest ethical benchmarks by actively participating in the implementation of the UNESCO Rights-based Ethical AI Governance framework (RAM).11 This commitment reinforces the nation’s focus on fundamental principles such as equity, accountability, and sustainability.
Operationalizing Trust: Standards and Risk Management
For organizations, translating Oman’s high-level policies into auditable, operational processes is best achieved by adopting international best practices, especially concerning technical robustness and lifecycle risk management.
The Strategic Advantage of ISO/IEC 42001
The Sultanate actively encourages the adoption of international AI management standards, such as ISO/IEC 42001:2023 (Artificial Intelligence Management System – AIMS). While not yet mandatory, the standard provides the world's first auditable framework for establishing and improving AI governance.
Adopting ISO 42001 is a critical strategic move because:
- Competitive Edge: It immediately enhances trust with global partners and customers who require ethical and compliant AI.
- Regulatory Readiness: It offers a structured way to address requirements anticipated by the 2025 General Policy, such as mandated human oversight and impact assessment.
- Future-Proofing: It prepares companies for future, more stringent regulations, particularly aligning with the high-risk requirements of international frameworks like the EU AI Act.
Governance in Critical Sectors
The regulatory attention is amplified in sectors vital to Vision 2040 and where the impact of AI is high:
Healthcare: AI used for diagnostics or treatment must strictly adhere to the PDPL (sensitive data) and medical ethics principles (autonomy, non-maleficence), demanding high levels of human oversight and system explainability.
Logistics & Smart Cities: Given the role of the MTCIT in these sectors (ports, transport, digital infrastructure), governance focuses on ensuring the secure flow, quality, and anonymization of massive data streams generated by IoT and urban management systems.
Capacity Building and Innovation Zones
The government is supporting compliance by building national capacity. Initiatives like the Centre for the Fourth Industrial Revolution (C4IR Oman) and university programs are training a local workforce in AI ethics and governance. Furthermore, the planned AI Designated Zone near Muscat International Airport is envisioned as a regulatory sandbox, offering tailored incentives and flexibility to test new technologies under controlled conditions before national deployment.
Strategic Recommendations for Clients:
Prioritize PDPL Compliance: Audit all AI training data and processing activities to ensure explicit consent is secured and all data subject rights (e.g. erasure, correction) can be actioned, especially where sensitive data is involved.
Implement Ethical Governance: Establish internal AI Impact Assessments (AIA) for all high-risk systems to document compliance with the 2025 General Policy’s requirements for transparency, accountability, and bias mitigation.
Pursue ISO 42001 Certification: Use the ISO/IEC 42001 framework to build a robust, auditable AI Management System (AIMS). This will ensure technical robustness and provide a powerful competitive differentiator for global partnerships.
Embed Human Oversight: For all automated decision-making tools, define clear human oversight and intervention mechanisms, as mandated by the MTCIT's General Policy, to reinforce ethical principles and mitigate liability.
By aligning with Oman's national priorities ethical design, transparent data use, and human-centric oversight businesses can accelerate digital transformation while reinforcing trust across sectors.
Conclusion
Oman’s journey toward AI regulation represents a strategic blend of innovation, ethical commitment, and stringent governance. As the 2025 policy framework matures, organizations must treat AI governance not as a compliance burden but as a fundamental strategic advantage.
Don't wait for regulatory enforcement—start building your AI governance framework today to stay ahead of Oman's evolving compliance landscape. Get in touch with one of our AI regulation experts.