Oman: A Market Driven by Long-Term Value

The security and safety market in Oman is steadily maturing. Security is no longer viewed simply as a procurement category or a compliance requirement. It is increasingly becoming an operational capability embedded within critical infrastructure, public services and commercial development

By: Roman Ivanković E-mail: editorial@asmideast.com

Oman’s security market is entering a period of profound transformation. The change is not being driven by a single megaproject or a short-term investment cycle, but by broader economic diversification, institutional reform and carefully phased infrastructure investment. Manufacturing, logistics, tourism, renewable energy and digital government are expanding simultaneously, creating a broader and more resilient economic base than in previous decades.

This transformation is also reshaping the country’s physical security market. Demand is no longer driven primarily by individual construction projects or traditional oil and gas investment. Instead, it is emerging across industrial zones, logistics corridors, ports, public infrastructure, healthcare, hospitality and commercial developments. As these sectors mature, so too do customer expectations. Organizations are increasingly looking beyond standalone products, prioritizing integrated platforms that combine physical protection with operational intelligence, cybersecurity and long-term lifecycle value.

Building a Foundation for Long-Term Growth

Oman is entering a new phase of economic development built on long-term planning, institutional reform and economic diversification. Guided by Oman Vision 2040 and the newly adopted Eleventh Five-Year Development Plan (2026-2030), the Sultanate is steadily expanding manufacturing, logistics, tourism, renewable energy and digital industries while reducing its dependence on hydrocarbons.

The strategy is already delivering results. According to the International Monetary Fund (IMF), Oman’s economy is expected to grow by around 3.7% in 2026, supported by higher oil production. Non-hydrocarbon growth is forecast to slow temporarily to around 2.5% because of regional geopolitical tensions affecting tourism and construction. The IMF nevertheless expects growth to strengthen again as large investment projects move into the implementation phase.

Rather than relying on short-term construction booms, Oman is building an economy designed to evolve over decades. Public investment is being used to strengthen industry, expand the private sector and create a more resilient economic model. This gradual approach has become one of the defining features of the country’s development strategy.

 Vision 2040 Moves from Strategy to Implementation

Oman Vision 2040 provides the country’s long-term roadmap for economic and social development. It focuses on diversification, digital transformation, fiscal sustainability and environmental responsibility. The objective is not simply to launch new projects, but to build a broader and more competitive economy.

The Eleventh Five-Year Development Plan turns those ambitions into concrete investment priorities. Manufacturing, tourism, logistics, renewable energy, mining, healthcare and the digital economy are expected to drive the next stage of growth. According to the IMF, companies owned by the Oman Investment Authority are expected to invest around USD 31 billion during the current plan period. The government will add another USD 2.6 billion in public capital spending to encourage further private investment. Vision 2040 is therefore no longer just a strategic framework. It is increasingly shaping investment decisions across the country and creating the conditions for sustained economic growth.

Digital Transformation Is Reshaping Public Administration

Physical infrastructure is only one part of Oman’s long-term development agenda. The government is placing equal emphasis on digital public services and modern ICT infrastructure. Digital government has become a strategic tool for improving efficiency, transparency and the quality of public services.

The program has already moved well beyond planning. Oman has accelerated the digitalization of government services, strengthened data sharing between public institutions and expanded the use of digital platforms across the public sector. By the end of 2025, more than 2,270 government services had been digitized, making it one of the region’s most comprehensive public-sector transformation programs.

The impact of these reforms extends well beyond public administration. Bipin Kumar, Regional Technical Sales Manager for MEA at Suprema, sees digital transformation as one of the strongest long-term drivers of security investment in Oman: “The outlook for Oman remains highly positive. As digital transformation accelerates across both the public and private sectors, demand for intelligent and integrated security solutions will continue to grow.”

Digitalization is also changing the way infrastructure is planned and managed. New industrial zones, logistics hubs, hospitals and public buildings are increasingly designed as connected environments where digital services, operational data and building management systems work together. These reforms are creating a more efficient operating environment and making Oman increasingly attractive to both domestic and international investors.

Distributed Infrastructure Shapes New Demand

Another defining feature of Oman’s development model is the way investment is spreading across the country rather than remaining concentrated in Muscat. Vision 2040 promotes balanced regional development through transport infrastructure, logistics corridors, industrial estates and special economic zones.

The Special Economic Zone at Duqm (SEZAD) is one of the clearest examples of this strategy. It combines a deep-water port, industrial facilities, logistics infrastructure and worker accommodation within a single economic ecosystem.

Similar investments are taking place in other parts of the country. Ports, transport links and industrial clusters are being developed across several governorates. The aim is to create multiple centers of economic activity and reduce dependence on a single growth corridor.

A Measured Market With a Longer Horizon

Perhaps Oman’s greatest competitive advantage is not the speed of its development, but its predictability. Recent IMF and World Bank assessments conclude that continued economic reforms, improving fiscal discipline and sustained non-oil growth have strengthened the country’s resilience and investment appeal. Rather than pursuing rapid expansion, Oman has adopted a phased development model that prioritizes long-term sustainability, institutional capacity and financial discipline.

According to Bashar Al Daoud, Territory Sales Manager for UAE & Oman at Axis Communications, customers in Oman tend to take a long-term view of investment decisions. They place greater emphasis on reliability, lifecycle value and trusted partnerships than on short-term technology trends.

This measured approach is also reflected in the way projects are procured. According to Sasi Kumar, General Manager for Middle East & Africa at Advanced, Oman remains a relationship-driven market where consultants and end users place greater value on local expertise, proven reliability and practical technical support than on short-term cost considerations. “Compared with other GCC markets, Oman is more relationship-driven and project-specific. Consultants and end users place significant value on local expertise, practical technical support and proven reliability. Procurement cycles tend to be more measured, with a stronger focus on compliance, documentation and after-sales support rather than purely initial cost,” he concluded.

The Green Hydrogen Boom

Oil and gas remain the backbone of Oman’s economy, but they no longer define its investment story. The country’s next phase of growth is increasingly shaped by downstream industries, renewable energy and industrial manufacturing. New industrial estates, refineries and energy projects are broadening the country’s economic base while creating entirely new operational environments.

The shift is particularly visible in the green hydrogen sector. Oman has committed billions of dollars to large-scale hydrogen production, supported by new renewable energy capacity, desalination plants and export infrastructure. These investments extend well beyond energy generation. They require industrial facilities, logistics networks and supporting infrastructure that will operate for decades.

Logistics as a National Growth Platform

Few sectors illustrate Oman’s ambitions more clearly than logistics. The country is positioning itself as a regional trade and transport hub linking the Gulf, East Africa and the Indian Ocean. Investments in Duqm, Sohar and Salalah are expanding port capacity, industrial processing, warehousing and multimodal transport. Rather than functioning as isolated projects, these developments are creating interconnected logistics ecosystems that stretch far beyond individual ports.

As cargo volumes grow and industrial activity expands, logistics facilities are becoming larger, more distributed and operationally more complex. The focus is shifting from protecting individual sites to managing extensive networks of ports, warehouses, transport corridors and restricted operational zones.

Becoming a Global Destination

Tourism has become another important engine of investment. The government’s strategy extends well beyond hotel construction. It includes integrated destinations, waterfront developments, airports, cultural attractions and public spaces designed to strengthen Oman’s appeal as an international destination.

According to Bashar Al Daoud, Territory Sales Manager for UAE & Oman at Axis Communications, the growing hospitality sector also creates opportunities for “operational video”, where security cameras are used to analyze guest flows and improve service delivery in resorts and cultural heritage sites. “We believe the greatest opportunities lie in technologies that offer a convergence of security, safety, and operational insights,” he pointed out.

At the same time, investment continues in healthcare, education and municipal infrastructure. These projects improve quality of life while supporting broader economic development and regional growth. Together, they are creating a steadily expanding portfolio of public and commercial assets that will require long-term operation and management rather than one-off construction activity.

Digital Government Is Transforming Essential Services

Digital transformation is no longer confined to government services. It is reshaping the way public institutions, financial organizations and critical infrastructure operate. Hospitals, ministries, schools, utilities and financial institutions are becoming increasingly connected through digital platforms and integrated public services. Banking is also evolving alongside broader economic reforms that encourage greater private-sector participation and attract new investment.

“The outlook for Oman remains highly positive. As digital transformation accelerates across both the public and private sectors, demand for intelligent and integrated security solutions will continue to grow,” said Bipin Kumar, Regional Technical Sales Manager for MEA Region at Suprema.

According to Kumar, the strongest opportunities will emerge across government and smart infrastructure, banking and financial services, transportation, aviation, ports and logistics, as well as the oil and gas sector. He also expects continued growth in utilities, particularly electricity and water services, alongside healthcare, education, hospitality, commercial real estate and industrial manufacturing, as organizations increasingly invest in modernizing both their physical infrastructure and digital operations.

As digital services become more deeply embedded across the economy, organizations are placing greater emphasis on operational resilience, business continuity and the protection of increasingly interconnected environments. This evolution is influencing security requirements just as much as new construction projects.

A Market Built on Multiple Growth Engines

What makes Oman distinctive is not the dominance of any single sector, but the diversity of investment across the economy. Industrial development, logistics, tourism, public infrastructure and digital government are expanding in parallel. Each contributes to a broader and more resilient development model. Instead of relying on one investment cycle, Oman is creating multiple long-term sources of demand that reinforce one another.

Sasi Kumar, General Manager for Middle East & Africa at Advanced, believes that Oman’s security and safety market is expected to continue evolving steadily, aligned with the country’s long-term development strategy. “Growth will remain closely tied to infrastructure, logistics, tourism, industrial expansion, energy, healthcare and education projects,” he pointed out.

This broad investment base gives the market a level of resilience that few sectors can match. The next question is no longer where investment is taking place, but how customer requirements are evolving within these rapidly developing sectors. That is where the market’s technology story begins.

Video Surveillance as an Operational Intelligence Platform

Across all three core sectors covered here – video, access control and fire safety – the same pattern is emerging: buyers are moving from product-led purchasing to platform-based thinking, weighing cybersecurity and interoperability as heavily as initial price. Nowhere is that shift more visible than in video surveillance. Cameras are no longer expected simply to record incidents; they are increasingly becoming intelligent sensors capable of supporting security, operations and business decision-making at the same time.

“Customers are no longer just looking for cameras. They are seeking Total Cost of Ownership efficiency and cybersecurity. There is a growing realization that cheap hardware leads to higher long-term costs in maintenance and vulnerability,” said Bashar Al Daoud from Axis.

Artificial intelligence is accelerating this transition. Axis is seeing growing demand for edge-based analytics powered by Deep Learning Processing Units (DLPUs), enabling cameras to distinguish accurately between people, vehicles and other objects directly on the device. Processing information at the edge reduces bandwidth requirements, minimizes false alarms and enables faster operational responses.

The same evolution is visible across large infrastructure projects. Multisensor cameras, PTZ devices, thermal imaging and radar are increasingly being combined to provide continuous situational awareness across ports, industrial facilities and energy sites. Network audio is also gaining traction, allowing operators to deliver automated announcements and real-time instructions while improving day-to-day operational efficiency.

Access Control Moves Toward Digital Identity

Access control is experiencing an equally significant transformation. Instead of simply controlling doors, modern platforms are becoming central to digital identity management across entire organizations.

Suprema believes this shift is being driven by broader digital transformation rather than traditional security requirements. “Organizations are no longer investing in access control devices – they are investing in trusted digital identity platforms that strengthen security while enabling digital transformation,” Suprema’s Bipin Kumar explained.

There is a strong demand for AI-powered facial recognition with advanced anti-spoofing, high-performance fingerprint authentication, mobile credentials and cloud-ready access management. Organizations are also investing in visitor management, workforce management and unified security platforms capable of integrating with HR, ERP, building management systems and video management platforms.

Cybersecurity has become equally important. Customers increasingly expect encrypted communications, secure firmware, certificate-based authentication and compliance with international cybersecurity standards to be built into physical security platforms from the outset. Rather than treating cybersecurity as a separate discipline, organizations are beginning to view it as an integral component of identity management.

“The future of physical security is no longer defined by standalone devices. It is evolving into intelligent, connected ecosystems where AI, biometrics, cybersecurity, and cloud technologies work together to protect people, assets, and critical infrastructure,” Bipin Kumar concluded.

Fire Safety Is Becoming a Connected Platform

Fire detection is following a similar path. Modern systems are evolving from standalone alarm panels into connected life-safety platforms that support operational continuity, remote management and long-term building performance.

This shift is particularly evident as projects become larger and more complex. Addressable fire alarm systems are increasingly being specified for their ability to provide precise event identification, flexible cause-and-effect programming and seamless integration with building management and other life-safety systems. At the same time, networked architectures are becoming the preferred choice for phased developments and multi-building facilities.

Flexibility has also become a key purchasing criterion. Depending on project requirements, consultants are specifying both EN- and UL-certified solutions, creating demand for platforms that can meet different regulatory frameworks without compromising scalability or long-term performance.

According to Sasi Kumar from Advanced, customers are increasingly looking beyond fire detection itself: “We are seeing increased demand for graphical monitoring, remote visibility and integration with systems such as voice evacuation. In addition, solutions that reduce false alarms while improving clarity of response are becoming a key consideration.”

The shift goes even further. End users increasingly expect connected, data-driven platforms that simplify maintenance, accelerate diagnostics and improve system visibility across complex facilities. These capabilities are becoming particularly valuable in sectors such as hospitality, healthcare and commercial real estate, where operational continuity is just as important as regulatory compliance.

Integration Sets the New Standard

Although video surveillance, access control and fire detection continue to perform different functions, they are clearly moving in the same direction. Axis describes a future built around operational intelligence. Suprema sees digital identity becoming the foundation of connected organizations. Advanced points to networked life-safety platforms designed for long-term performance and operational visibility. Different technologies, but similar priorities.

The common thread is integration. Organizations are no longer looking for isolated systems that solve individual security challenges. They want platforms that exchange data, support business operations, strengthen cybersecurity and remain scalable throughout the lifetime of a facility.

This evolution reflects the broader maturity of Oman’s market. As investment shifts toward long-term infrastructure, customers are becoming more selective about how technology is specified, integrated and managed. The conversation is no longer centered on individual devices. It is increasingly focused on building resilient security ecosystems that combine intelligence, interoperability and lifecycle value into a single operational framework.

Looking Ahead: From Infrastructure to Intelligence

Oman’s security market is entering a new phase. The foundations have already been laid through long-term investment in infrastructure, industrial development, and digital government. The next stage will be defined less by the number of projects delivered than by how intelligently those assets are operated throughout their lifecycle.

That shift is already visible across the market. Different technologies are moving toward the same destination: integrated systems that deliver operational value well beyond their traditional security role.

For end users, the practical shift is this: tender and vendor evaluations built purely around unit price or feature checklists are increasingly out of step with how the market is actually maturing. The more useful questions are becoming – can this platform absorb the next five years of integration requirements without a forklift upgrade, and does the vendor have a demonstrated cybersecurity track record, not just a compliance certificate. Those two questions alone are starting to separate serious long-term suppliers from short-term ones in Oman’s tenders.

For manufacturers and system integrators, the takeaway is equally direct. The companies gaining ground are not the ones with the broadest catalog, but the ones that can show a credible, referenceable integration story, operating on shared data, not just shared branding.

Oman may never be the Gulf’s largest security market, nor is it trying to be. Its strength lies in the consistency of its development model and the clarity of its long-term direction. As the country continues to diversify its economy and modernize its infrastructure, the security industry is likely to find a market that rewards strategic thinking, operational excellence and sustainable partnerships over short-term opportunities. In that sense, Oman offers a preview of a broader shift already underway elsewhere in the region: procurement decided less by device specifications, more by the strength of the ecosystem behind them.