Oman’s startup ecosystem is facing a crucial challenge in retaining its most promising companies as they mature, raising questions about the nation’s ability to capitalize fully on its entrepreneurial successes. While Oman has seen notable achievements in homegrown startups attracting regional attention and investment, many of these firms ultimately exit through acquisition by foreign companies before reaching scale domestically.

The case of Akeed illustrates this trend. Founded in 2018, the Omani delivery platform rapidly expanded to include over 1,500 restaurant partners and around 200,000 customers, earning recognition for its localized approach that accommodated cultural norms such as scheduling deliveries around prayer times. In 2024, Akeed was acquired by Snoonu, a company based outside Oman. Similarly, Promize, an Omani data analytics firm processing billions of consumer data points daily, was purchased by Saudi Arabia’s T2 the same year. These transactions were celebrated within the local startup community as milestones and indicators of success.

However, some experts argue that these acquisitions highlight a broader regional pattern described as “ecosystem extraction,” where startups generate significant local value but are ultimately sold to foreign entities, transferring ownership of technology, data, and growth potential outside the Arab world. This dynamic raises concerns about whether such exits represent genuine wins for the local economy or simply the loss of long-term opportunities for domestic innovation and economic contribution.

Comparisons with more mature startup ecosystems reinforce these concerns. In markets such as the United States and Israel, government policies and financial infrastructure—including access to public listings and patient capital—encourage startups to scale domestically and remain under local ownership for extended periods. Saudi Arabia, for instance, has taken deliberate steps to encourage domestic growth, with recent data indicating that 77% of Saudi startup founders are considering an initial public offering (IPO), and 91% prefer domestic listings. The regional example of Talabat—once acquired by a foreign parent but later publicly listed on the Dubai Financial Market in 2024 with a $2 billion raise—illustrates how ecosystem maturity can enable companies to scale within the region.

Oman’s government has established several support mechanisms such as incubators, hackathons, and accelerator programs, signaling commitment to fostering entrepreneurship. Yet, what appears to be lacking is a structured pathway for startups to progress from early-stage ventures to publicly listed companies that contribute significantly to the national economy over time. Without such infrastructure, acquisition often remains the most viable exit strategy for founders—not due to a lack of ambition but because alternative growth avenues are insufficiently developed.

Beyond economic implications, startup acquisitions have broader strategic ramifications, especially regarding data ownership. As data increasingly underpins digital economies, the migration of locally generated consumer insights and proprietary algorithms overseas may limit national control over critical information assets.

Oman’s Vision 2040 emphasizes economic diversification and building a knowledge-based economy. Achieving these goals may depend on creating an innovation ecosystem designed explicitly to retain startups and support their sustained growth domestically. The question facing Oman is no longer whether it can develop innovative startups but whether it can establish the conditions enabling these companies to remain and thrive within the country.