The study tries to analyze the constituents of Sultanate of Oman that have made this country to be a respective small regional and international power. This research paper focuses on three main elements. The first element deals with the historical background of the Sultanate of Oman with a focus on its strategic importance. The second one presents the political, economic and social factors that support its regional position. The final element is the soft foreign policies of the Omani leadership and its impact on the future of the state.