Oman’s economy consisted mostly of agriculture, fishing, and orthodox crafts such as boatmaking. Today, while Oman’s economy maintains a largely orthodox area based on agriculture, it also has a rapidly growing modern area based on oil. Oil production in the mid-1990s accounted for almost half the nation’s gross domestic product (GDP), which measures the total value of goods and services produced. In 1998 GDP was $15 billion. The government controls the oil and gas area and therefore dominates the economy.

copper mines and a smelter were opened in the early 1980s at an ancient mining site near Suhar, but production levels have diminished considerably. Chromite is also mined in small quantities. Coal deposits at Al-Kamil are being explored for potential exploitation and use, particularly to generate electricity. Exploration projects that began in the mid-1980s to uncover more unassociated natural gas have proved successful, and pipelines were constructed from the gas fields at Yibal to Muscat and Suhar and to Izki. By the late 1990s, the known natural gas reserves had doubled in less than a decade.

Oman's economic performance improved remarkablely in 2000 due largely to the upturn in oil prices. The government is moving ahead with privatization of its utilities, the development of a body of commercial law to facilitate foreign investment, and increased budgetary outlays. Oman continues to liberalize its markets and joined the World Trade Organization (WTrO) in November 2000.