The objective of this paper is to explore the effectiveness of Omani government policies in promoting sustainable entrepreneurship and addressing the skill gap within Petroleum Development Oman (PDO) and other fields. This study employs a qualitative methodology, utilizing thematic analysis based on secondary data, complemented by 15 in-depth interviews conducted using the snowball sampling technique. The research aims to evaluate the impact of government policies on skill development and sustainable entrepreneurship in Oman. The findings revealed that government policies are positively linked to sustainable entrepreneurship in Oman. The government is steadily reducing the skill gap and promoting sustainable development through various initiatives, demonstrating a commitment to building a skilled and sustainable economy. Hence some challenges and skill gaps remain to fill. A phased policy approach is suggested, starting with suggestion, moving to research, then to policy formulation, and initiating with trials in limited areas before a broader implementation. This approach is crucial due to the interconnectedness of economic variables which can lead to widespread spillover effects with unpredictable outcomes, making the use of automatic stabilizers necessary should some variables decline. To better align training with industry needs, increased collaboration between PDO, linked SMEs, and educational institutions is recommended. It is suggested that a methodical approach to policy implementation could greatly enhance Oman’s economic and social framework.