Oman, UK seal £1bn AI data centre deal, expand investment and security ties

Dubai: Oman and the United Kingdom have signed agreements covering a major artificial intelligence data centre in Salalah, sovereign investment and strategic cooperation, as Sultan Haitham bin Tarik's state visit to the UK paved the way for more than £1 billion in new investment and deeper economic and security ties.

The agreements were announced during Sultan Haitham's three-day state visit, hosted by King Charles III and Queen Camilla, as the two countries sought to strengthen their longstanding political, economic and strategic relationship.

The centrepiece of the agreements is a large-scale AI data centre to be developed in Salalah by UK-founded infrastructure investment company Yamna, with the project's first phase expected to exceed £1 billion.

The project is expected to create more than 100 highly skilled jobs in Britain through the export of British expertise, while generating returns for UK-backed investors.

Oman's Ministry of Transport, Communications and Information Technology and Yamna signed a memorandum of understanding on strategic cooperation, according to Oman News Agency (ONA).

The two countries also signed a memorandum of understanding establishing a sovereign partnership to promote cooperation and investment, building on the existing UK–Oman Sovereign Investment Partnership.

The agreement is intended to accelerate investment in both countries, particularly in renewable energy, advanced technology, critical minerals, space, healthcare and financial services.

In a further boost to bilateral trade, UK Export Finance, Britain's export credit agency, announced plans to increase its financing capacity for British exports to Oman to as much as £7 billion, potentially opening new opportunities for British companies seeking to expand into the Omani market.

British Prime Minister Andy Burnham hosted the Omani leader at Downing Street, where discussions focused on expanding investment, strengthening security cooperation and developing partnerships in emerging technologies.

“Economic growth, security, defence, education: these are just some of the priorities we share as we plot a course through an increasingly complex world,” Burnham said.

“Working together, we are leading with our values and creating opportunities for people in both our countries.”

The two countries also agreed to deepen maritime security cooperation through a memorandum of understanding providing for greater information-sharing and exchanges of expertise with Oman's Maritime Security Centre.

The initiative reflects Oman's strategic position overlooking the Strait of Hormuz, a vital shipping route for international energy supplies and global trade.

British officials highlighted Oman's diplomatic role in promoting regional stability and facilitating dialogue amid continuing tensions in the Middle East.

Cooperation will also extend to space technology, with the UK Space Agency and the Omani government agreeing to exchange expertise and collaborate on space policy, scientific research and innovation.

In education, the two countries signed a separate letter of intent promoting the responsible use of artificial intelligence in classrooms, including support for English-language learning and helping teachers deploy the technology safely and effectively.

Britain also announced the return of its Chevening scholarship programme to Oman, with applications scheduled to open in August 2027, providing opportunities for Omani students to pursue higher education in the United Kingdom.

The agreements underscore efforts by Muscat and London to transform their longstanding relationship into a broader strategic partnership centred on investment, technology, education and regional security.

The new investment commitments build on a sovereign investment partnership established in 2022, under which Oman has invested £1.7 billion in Britain, according to the UK government. British exports to Oman totalled £1.1 billion in the four quarters ending in March 2026.

The two governments also announced a diplomatic partnership between Britain's Diplomatic Service College and the Omani Diplomatic Academy to promote exchanges of expertise and joint diplomatic initiatives.

The visit, the first state visit to Britain by an Omani sultan since 1982, also highlighted Oman's growing diplomatic importance, particularly its efforts to maintain navigation through the Strait of Hormuz.

During their Downing Street meeting, Sultan Haitham and Burnham reaffirmed their commitment to keeping the strategic waterway open, protecting global supply chains and strengthening bilateral defence and security cooperation.

The agreements mark a significant expansion of Oman-Britain relations, linking major infrastructure investment and emerging technologies with longstanding defence, diplomatic and commercial ties.