How did petroleum production change Oman’s economy after 1967?

Following the first export of petroleum in 1967, the production and export of oil rapidly became the dominant force in Oman’s economy. This shift transformed the nation, as oil revenues eventually accounted for approximately two-fifths of the gross domestic product and roughly three-fourths of government income.1

The influx of oil wealth facilitated significant modernization, particularly after 1970, when a change in government ended the country's isolation and spurred industrial development. This newfound capital allowed for massive investments in infrastructure, including electricity generation, cement plants, and desalinization complexes.2

To ensure long-term stability, the government later implemented plans to diversify the economy, focusing on natural gas resources and privatization to prepare for the eventual depletion of oil reserves. While oil remains central to the economy, the government has also prioritized social welfare spending, though this has faced challenges during periods of fluctuating global oil prices.13