This study aimed at exploring the effectiveness of the Competition of the Holy Quran Retention (henceforth CHQR) and the obstacles encountered during this event from the perspective of the Omani educational inspectors and teachers. The study sample consisted of 150 male and female and 14 educational inspectors in the governorate of Dhofar in the academic year 2011/2012. The researcher used a questionnaire comprised 53 items divided into two major components: the effectiveness of the CHQR, and the obstacles encountered during the competition which inhibit the successful completion of the event and the achievement of its objectives. The questionnaire was evaluated by apanel of refereed academic judges to check its validity by using on pilot subjects mf 30 male and female teachers. When applied, the reliability coefficient was (0.93). The final results of the main study were as follows: An average mean of 4.36 was scored on all the items measuring the effectiveness of the CHQR in all the schools in the governorate of Dhofar. There are no statistically significant differences between the responses of the educational inspectors and those of teachers involved in the CHQR due to gender as a variable. There are statistically significant differences between the responses of the educational inspectors and teachers of the CHQR that might be attributed to the educational level they teach and supervise, especially for levels in the basic and secondary education. As for the obstacles encountered during the process of the CHQR, the results of the study showed first that an average mean of 4.09 was scored corresponding to the competition and its procedures, followed by an average mean score of 3.76 for the obstacles encountered by the educational inspectors. Considerable mean scores of 3.56 and 3.54 were obtained respectively on the obstacles faced by the school administration and teachers. In light of the above results, the study recommended: the need to provide a financial support in order to achieve better levels of the CHCR, and the need for qualified teachers to oversee the competition in every school. Besides, suggestions have been made for further research on other important issues related to the CHQR.