The effects of the financial crisis in America, which happened to be spoken as one of the most advanced countries, spread from there to the other countries of the world and none were spared of its effects. For some of the countries, the effect was immediate whereas in some much smaller countries the effect was slow to come. One of the countries that have been lately affected by this is the Sultanate of Oman. This is a small high income economy that is highly dependent on its oil resources. It is a small member of the OPEC (Organization of Petroliam Exporting Countries) oil-cartel with a share of only 0.4% of the world‘s proven oil stocks and 1% of the world production according to the EIU (Economist Intelligent Unit), CIA (Central Intelligence Agency) World fact book. This reflects the needs for carrying out policy changes in order to increase its exports and imports as well as to adopt measures whereby a diversification should be seen on its sources of revenue. Effective trade policies which shall include Omanization, promotion of the tax policy and improving both the SME (Small & Medium Enterprises) as well as the tourism industry shall help in the long run to nullify or reduce the negative impacts of the crisis. Further, if modernization in the existing political system is brought about and the investment by other countries, along with promotion of its own cottage industries like production of the Omani Halva, Date processing and Oudh and Frankincense export increased little if not much can help achieve to turn around the present scenario.