Britain and Oman are preparing to expand economic cooperation, with major investment in AI infrastructure, stronger export financing and new agreements covering defence, maritime
security, education and space.
The United Kingdom and Oman are seeking to strengthen their long-standing partnership through a series of investment and cooperation initiatives expected to generate jobs, stimulate economic growth and open new opportunities for businesses in both countries.
The announcements come as Sultan Haitham bin Tarik continues his three-day State Visit to Britain, hosted by King Charles III and Queen Camilla. Prime Minister Andy Burnham is due to welcome the Omani leader to Downing Street on 21 October, where the two countries are expected to advance agreements on trade, investment and security.
At the centre of the economic agenda is a new arrangement designed to increase investment flows between Britain and Oman. Building on the existing UK-Oman Sovereign Investment Partnership, the agreement is intended to encourage investment in strategically important industries, including renewable energy, artificial intelligence, critical minerals, space technology, healthcare and financial services.
Britain is also preparing to expand support for exporters seeking opportunities in the Omani market. UK Export Finance, the government's export credit agency, will increase its financing capacity for British exports to Oman to as much as £7 billion, potentially enabling companies to pursue larger contracts and strengthen their commercial presence in the Gulf region.
AI infrastructure project brings billion-pound investment prospects
One of the most significant commercial developments involves UK-founded Yamna, an international infrastructure development and investment company backed by British investment funds. The company is expected to sign an agreement with Oman to develop a large-scale artificial intelligence data centre in Salalah.
The first phase of the project is expected to exceed £1 billion in value. According to the government announcement, it is also expected to support more than 100 highly skilled jobs across the UK, as British technical expertise is exported and investment returns are generated for UK-backed investors.
The project reflects growing international demand for the computing infrastructure needed to support AI applications. For Britain, the agreement offers an opportunity to translate domestic expertise into overseas commercial activity, while Oman stands to benefit from additional digital infrastructure and investment.
Prime Minister Andy Burnham said the Sultan's visit provided an opportunity to build on the countries' historic friendship and deliver tangible benefits for their populations.
He highlighted economic growth, security, defence and education as shared priorities, adding that closer cooperation could create opportunities for people and businesses on both sides.
Security and maritime cooperation move higher up the agenda
Economic relations are only one part of the expanding partnership. British and Omani officials are also expected to pursue closer coordination on defence, regional security and international trade routes.
Oman occupies a strategically important position near the Strait of Hormuz, a vital passage for global energy supplies and commercial shipping. Its diplomatic engagement in the Middle East and its role in regional dialogue make the country an important partner for Britain as both governments seek to support stability and protect international trade.
A proposed memorandum of understanding will strengthen maritime security cooperation between the two countries. The arrangement is expected to focus on sharing information and expertise, including through closer engagement with Oman's Maritime Security Centre.
The Foreign Secretary, the Defence Secretary and Britain's Minister for Trade are also due to meet their Omani counterparts during the visit. The discussions are intended to identify further opportunities for cooperation and reinforce the wider strategic relationship.
Foreign Secretary Ed Miliband said the partnership, which dates back almost four centuries, remained important at a time of heightened uncertainty across the Middle East.
He emphasised Oman's contribution to diplomatic dialogue and regional stability, describing closer collaboration on defence, trade, investment and education as essential to ensuring that the relationship continues to deliver practical benefits.
British education and responsible AI included in new agreements
The visit is also expected to produce initiatives aimed at strengthening educational links and technological cooperation.
Britain will announce the return of the Chevening Scholarship Programme in Oman, restoring access to a prestigious UK-funded scheme designed to help develop future leaders through postgraduate study at British universities.
Applications are expected to open in August 2027. The programme is intended to expand educational opportunities for Omani students and strengthen long-term professional and cultural connections between the two countries.
Separate agreements will address the use of artificial intelligence in education. The UK and Oman plan to cooperate on responsible AI adoption in schools, support English-language learning and help teachers integrate new technologies into classroom activities safely and effectively.
The countries will also deepen collaboration in the space sector. Planned cooperation between the UK Space Agency and the Omani government will cover space policy, scientific research, innovation and the exchange of specialist knowledge.
Together, these initiatives aim to extend the partnership beyond traditional trade and diplomacy, positioning both countries to benefit from emerging technologies and investment opportunities.
A historic relationship with a modern economic focus
The Sultan's State Visit underscores Britain's efforts to strengthen relationships with strategically important partners in the Gulf, combining commercial investment with security cooperation and diplomatic engagement.
For Oman, closer ties with the UK offer access to British expertise, international investment networks and educational opportunities. For Britain, the agreements could help expand export markets, support skilled employment and attract investment into priority sectors.
The scale of the announced initiatives will ultimately depend on the implementation of the proposed agreements and the delivery of individual projects. Nevertheless, the investment programme, expanded export-finance capacity and planned cooperation in security, education and technology signal an ambition to give the historic relationship a more substantial economic role.
The two governments are seeking to turn centuries of diplomatic and commercial ties into a forward-looking partnership capable of supporting growth, innovation and regional stability in the years ahead. Photo by Ian Sewell, Wikimedia commons.
