Urban infrastructure deals with various objects, such as multi-floor buildings, underground utilities, and other typical two-dimensional (2D) geographic information system (GIS) objects. Currently, Oman and Qatar authorities attempt to manage and handle all these spatial objects and features via spatial data infrastructure (SDI). Qatar has a long tradition of applying SDI, while Oman has made rapid progress in building SDI according to the current practices in this field. Governments in both countries work toward smart cities and e-government to meet the fourth industrial revolution requirements. Current literature, indicate that SDI could be considered a major building block for such smart initiatives in the near future. This paper describes the status and challenges of developing SDI (including 3D SDI) for Oman and Qatar. We anticipated these 2D and 3D SDI initiatives would eventually provide future direction for the smart city and e-government. The current status and challenges form major discussions of this paper. It also discusses 3D SDI development. This paper ends by describing a framework for implementing the 3D SDI. The outcomes could significantly improve the awareness for developing 3D SDI in Oman and Qatar.