Welcome to our comprehensive overview of Oman's startup ecosystem. In this analysis, we delve into the landscape of entrepreneurship in the Sultanate, examining key trends, emerging opportunities, and influential players driving innovation. Whether you are an investor, entrepreneur, or interested observer, this analysis aims to provide an informative perspective on Oman's evolving startup environment.

Tracking Investment Growth in Oman's Startup Sector

In recent years, Oman's startup ecosystem has experienced notable growth and increasing investor interest. Data from the past three years reflects this trend, with a steady rise in both the number of investment deals and total funding raised by startups. In 2021, Oman saw 6 investment rounds totaling $3 million, followed by 11 deals amounting to $3.5 million in 2022. The momentum continued to build in 2023, with a significant increase to 18 deals totaling $4.8 million. These figures highlight the expanding opportunities and growing confidence in Oman's emerging startup landscape, setting the stage for further development and innovation in the years ahead.

Most Active Investors

Oman Technology Fund

The Oman Technology Fund (OTF) is focused on positioning Oman as a leader in knowledge-based industries within the Middle East. The OTF aims to boost the country's knowledge economy and ICT sector by attracting promising projects and entrepreneurs to Oman. Through targeted investment programs like Techween for early-stage ideas, Wadi Accelerator for acceleration, and Jasoor Ventures for growth, the OTF seeks to foster innovation and establish Oman as a regional innovation hub. OTF has invested in over 60 companies and has exited 10 startups.

IDO Investments

IDO Investments, part of Innovation Development Oman, is a technology investment firm focused on supporting established growth-stage startups with disruptive and innovative technologies. Their investment decisions are guided by alignment with the Oman 2040 Vision, and their portfolio companies actively contribute to several of its goals. Backed by the Oman Investment Authority (OIA), IDO Investments has invested in 15 companies so far and exited 4.

Phaze Ventures

Phaze Ventures, established in 2018, is the oldest private venture capital firm based in Oman. They specialize in investing in early-stage Deeptech, AI, and Web3 companies from the Middle East, Europe, and North America, aiming to drive the transformation of the region's economies. With a track record of 15 investments and 2 exits, Phaze Ventures plays a pivotal role in supporting innovation and technological advancement across diverse markets.

M&A Activity

In recent M&A activity within Oman's startup ecosystem, notable transactions have demonstrated significant growth and expansion. eMushrif, an Omani startup specializing in digital transport tracking systems, has strategically acquired Egypt-based transport tracking app Tareeqi and Kuwait-based public transport smart tracking system MyRoute, enhancing its capabilities in IoT and AI technologies for corporate and school transport. Additionally, Qatar's leading tech startup, Snoonu, has acquired Akeed, a prominent Omani food delivery platform with a vast network of restaurants and grocery stores. Finally, Mexico-based KAVAK has expanded its operations into the Middle East through a merger with regional player Carzaty, aiming to revolutionize the pre-owned car buying and selling industry in the GCC. These transactions highlight the increasing collaboration and innovation driving startup growth across Oman.

Startups to keep an eye on

One startup to watch closely in Oman's evolving landscape is KitchenomiKs, a managed smart cloud kitchen company leveraging advanced technology to facilitate Delivery and Grab & Go Only Kitchen Operations. Founded in March 2022 by Aankush Bhatia and Shrikanth Shenoy, KitchenomiKs aims to expand across the GCC by Q1 2024, spearheading the food-tech economy by creating a robust network of restaurants without traditional dining spaces. With recent funding rounds, including a Seed Round in December 2022 and a Pre-series A Round in November 2023 totaling $1.7 million and $1.8 million respectively, KitchenomiKs is poised for accelerated growth and innovation within the region's food delivery and cloud kitchen sector. Keep an eye on KitchenomiKs for its transformative approach to redefining the restaurant industry through technology-driven solutions.

Key Developments in 2024

In 2024, Oman's startup scene witnessed significant developments:

• Innotech, a local contech company, secured $500,000 in funding during the "Beban" TV show.

• ADQ and Oman Investment Authority launched the $180 million Jasoor Fund to support tech startups across MENA.

• Bon Plus, a HoReCa services provider, raised seed funding from Omantel Innovation Labs and angel investors.

• Zameeli, a platform connecting freelancers with SMEs, completed an equity crowdfunding campaign through Mamun, paving the way for Mamun's secondary market launch.

These events highlight the growing momentum and potential in Oman's dynamic startup ecosystem.

In summary, Oman's startup ecosystem shows promising growth and evolving opportunities supported by a favorable regulatory environment and increasing investment interest. Despite challenges like funding and talent acquisition, collaborative efforts between government and private sectors are fostering a dynamic entrepreneurial culture. With continued support, Oman's startups are poised to contribute significantly to economic diversification and innovation in the country.