MUSCAT (OMAN) - A FORAY into Oman and the wider Middle East makes economic sense to two Singapore companies amid the global recession, as these non-traditional markets are still very much open for business.

Massive dock gates for Oman's port of Duqm will be built in desert terrain by Top Great Engineering & Marine. Construction starts next month. Also, speciality steel wire maker Sky Holding will set up a plant in Oman. The two companies yesterday inked deals with Omani partners to pursue the new ventures.

Mr Wong Boon Huat, the managing director of Top Great, said: 'Oman is still new in the marine industry, so this presents the best opportunities for us.'

The gates it will be building are for the world's second-largest dry dock, located in Duqm, 800km south of Muscat. The project is worth $29 million. From Oman, the company will 'spread' into the Middle East, Mr Wong added.

Mr Niel Brand, Al Lawami International's head of business development, signed the steel deal with Sky Holding and later said: 'The recession is the best time to do business because costs are low.'

He noted that Oman was the first among the six oil-rich Gulf Cooperation Council states to ratify a free trade agreement (FTA) with Singapore. The FTA facilitates business activities, he said, while the way Singaporeans do business is highly professional.

Yesterday, various memorandums of understanding (MOUs) were signed as Singapore firms sought to build a stronger presence in the sultanate - a non-traditional market that International Enterprise (IE) Singapore is excited about.

Mr Lim Ban Hoe, IE Singapore's regional director of international operations for the Middle East and Africa, said the agency is helping companies expand beyond traditional markets, especially in these challenging times.

'These two joint ventures illustrate the importance of seizing opportunities in untapped markets,' he said in a statement.

Opportunities abound in the urban and industrial infrastructure, health care, oil and gas infrastructure services, information technology and other sectors.

Read the full story in today's edition of The Straits Times.