The first pressing problem that Qaboos bin Said faced as Sultan was an armed communist insurgency from South Yemen, the Dhofar Rebellion (1962–1976). The sultanate eventually defeated the incursion with help from the Shah of Iran, Jordanian troops sent from his friend King Hussein of Jordan, British Special Forces and the Royal Air Force.
Qaboos acceded to the throne on 23 July 1970 following a successful coup against his father, with the aim of ending the country's isolation and using its oil revenue for modernization and development. He declared that the country would no longer be known as Muscat and Oman, but would change its name to "the Sultanate of Oman" in order to better reflect its political unity.
On 22 March 1976, Qaboos bin Said married his first cousin, Kamila née Sayyida Nawwal bint Tariq Al Said (born 1951), daughter of Sayyid Tariq bin Taimur Al Said and his second wife, Sayyida Shawana bint Nasir Al Said. The marriage ended in divorce in 1979. She remarried in 2005. The marriage produced no heirs, and Qaboos bin Said wrote secret documents naming the successor to his realm.
Oman has no system of checks and balances, and thus no separation of powers. All power is concentrated in the sultan, who is also chief of staff of the armed forces, Minister of Defense, Minister of Foreign Affairs and chairman of the Central Bank. All legislation since 1970 has been promulgated through royal decrees, including the 1996 Basic Law. The sultan appoints judges, and can grant pardons and commute sentences. The sultan's authority is inviolable and the sultan expects total subordination to his will.
In October 2018, Qaboos invited Prime Minister of Israel Benjamin Netanyahu to visit Oman, a country that does not have official diplomatic ties with Israel. Netanyahu was the first Israeli prime minister to visit Oman since Shimon Peres in 1996.