DESPITE the global business downturn, the Middle East is a bright spot for SIA Engineering Company (SIAEC) and its new Gulf Air partnership.

Bahrain's national carrier Gulf Air and SIAEC met in Singapore on Friday to extend the coverage of a three-year maintenance and fleet management contract, to include more aircraft and increased scope of services.

It brings to US$135 million the total value of the contracts inked with Gulf Air so far. Under the deal, the Singapore Airlines subsidiary which will base 160 staff in Bahrain will also help Gulf Air build up its own engineering capabilities.

SIAEC chairman Stephen Lee said at the signing ceremony: 'When we look out in the present situation, the Middle East is a rare exception; it is still growing.'

The contract with Gulf Air is significant, he said, and one that will keep SIAEC busy for the next two to three years at least. It will also give the SIA company a good presence and a good start in the Middle East, he said.

SIAEC chief executive William Tan said that the fleet management programme, will be a key part of the company's business going forward. It means that apart from maintaining customer aircraft, SIAEC also takes charge of all of the carrier's maintenance planning and scheduling.

'Having a presence in the Middle East allows us to reach out not ony to Gulf but to other airlines in the region as well,' he said.

Gulf Air chose SIAEC after a long search to identify a company that would provide not just a comprehensive suit of engineering facilities and services, but also help the airline improve its own in-house capabilities, said chairman Talal Al Zain.

The tie-up was approved by Second Transport Minister Lim Hwee Hua, who officiated at the signing ceremony.

'Gulf Air's expanded partnership with SIAEC not only marks the increasing importance of our aerospace industry, but also shows the growing economic and strategic links between Singapore and the Middle East,' she said.