DUBAI has styled itself as the 'Singapore of the Middle East'. Another country in the Arab world aspiring to follow in its footsteps is Oman, located on the south-east coast of the Arabian peninsula.

Diverse landscapes: Oman has fjords, deserts, pristine reefs and rugged mountains which attract the well-heeled, adventurous eco-tourism traveller. Picture shows Shangri-La's Barr Al Jissah Resort & Spa in Muscat
Like Dubai, the sultanate is also keen to partner Singapore companies to keep up with the economic development of its neighbours.

Just five months ago, Oman's Deputy Prime Minister Sayyid Fahad Mahmood Al-Said arrived in Singapore with a business delegation. And during his visit, Oman and Singapore inked an investment guarantee agreement that will protect the investments of businessmen from both countries.

'Both the Omani government and private sector think very highly of Singapore capabilities and are keen to deepen business ties with our companies,' says Ted Tan, deputy chief executive officer of International Enterprise Singapore, which is pushing Singapore companies to go international.

Mr Tan feels Singapore companies should seize this opportunity and venture into Oman. The market there is also suitable for Singapore companies.

'Projects in Oman are smaller in scale compared with those in the larger Gulf Cooperation Council economies, and hence more manageable for our companies in terms of financial and manpower resources that need to be committed,' Mr Tan says.

Furthermore, Oman is widely credited with having 'one of the most foreigner-friendly cultures' in the Arab world.

Oman has come under IE Singapore's spotlight in the latter's search for potential markets in the Middle East for Singapore companies.

'Oman, the second largest country in the Arabian Gulf after Saudi Arabia, has the most picturesque scenery and abundant marine and wildlife in the Gulf,' says Tang Chi Lin, IE Singapore's centre director in Dubai, who covers the Oman market.

Hot destination

'In fact, Sky News of UK in December 2007 recognised Oman as the 'Hottest New Travel Destination' for 2008, referring to Oman as 'a breathtaking country with diverse landscape of fjords, deserts, pristine reefs and rugged mountains',' he says.

In contrast to Dubai's cosmopolitan nature, Mr Tang says Oman's charms attract the adventurous, outdoor eco-tourism traveller.

'Oman is the playground of Europe's adventurous but well-heeled visitors, who pay US$250-US$400 per room night for hotel stay during the September-May period,' he says.

According to him, Singapore companies with a track record in resort tourism development, especially in Asia-Pacific, will find strong interest in Oman.

'Resort hotel developers and management companies should find it easy to attract the high hotel room rates that are expected to remain for the immediate future - reflecting the shortage of hotel rooms,' Mr Tang says. 'These hotels would also require architects, construction companies, building consultants, furniture and interior design vendors and spa operators.'

Tourism isn't the only growth sector that offers business opportunities for Singapore companies.

'Oman offers the most cost-effective base for Singapore's industrial and manufacturing companies serving the Middle East, Africa or European markets,' Mr Tang says.

Minimum pay at 150-300 Omani rial for the private sector and 250-300 rial for the public sector are much lower than in the rest of the Gulf states.

'In terms of local recruitment, Omanis are (also) known to be hardworking and open to taking on jobs at all levels of seniority and commitment,' Mr Tang says.

Infrastructure development, environmental technologies, transport and logistics and infocommunication technologies are other growth sectors in Oman where Singapore companies can find business.

Apart from hotels and resorts, Mr Tang says Singapore companies can also build apartments, malls and leisure infrastructure. In environmental technologies, they can offer their expertise in clean water and sanitation for Oman's cities, towns and villages - a big concern of the government there at the moment.

Mr Tang says the Oman Wastewater Treatment Company has in the pipeline $400 million worth of projects for sewage and water treatment plants.

In the infocomm sector, the Omani government has identified information technology as key in connecting with its people - and there is a pressing demand for e-government services, IT masterplan, national e-security solutions and solutions for trade and legal applications.

Unlike Dubai, Abu Dhabi and other Arab states, Oman is still largely virgin territory for Singapore companies. Mr Tang estimates that there are fewer than 10 Singapore companies with a presence there.

'One of the most notable Singapore companies in Oman to date is General Hotel Management which established The Chedi Muscat resort hotel in Oman in 2001,' he says. 'The Chedi Muscat was voted number two in Conde Nast Traveller's 'Best of the Best in the World' in 2007.'

Steady development

Singapore-based NCS has won an e-government project in Oman last year. ASM Technologies has an IT consultancy business there, while the Ayana Spa, owned by Singaporean Mae Lam, has been doing a thriving business catering to well-to-do local and expatriates for nearly a decade.

'In comparison with the vibrancy of Dubai's economic development, Oman appears to prefer to adopt a quiet but nonetheless steady approach to development,' Mr Tang says. 'As such, Oman's plans for economic development may be less well known than those of its Gulf neighbours. At first glance, many Singapore companies may therefore not be well acquainted with the opportunities and fast growth of the Oman markets.'

IE Singapore is determined to correct that.

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