A bilateral trade agreement between Ireland and Oman will be signed shortly, according to Mr Tom Kitt, the Minister of State at the Department of Enterprise, Trade and Employment.

Mr Kitt said yesterday that the agreement would cover vocational training, IT and tourism. The development follows talks with the Omani Minister for Commerce and Industry, Mr Maqbool Ali Sultan.

Mr Kitt, who is accompanying the President, Mrs McAleese, on her state visit, said Ireland exported about £15 million (€19 million) in foodstuffs, agricultural produce and computerware to Oman but opportunities existed in the service areas. FAS and CERT would be providing assistance to an exchange of personnel and resources.

The Minister said other areas of opportunity included further ESB involvement - the board already has one power station here - and talks were ongoing for the Carlow company PCAS to provide software for a power plant worth about £4 million.

Yesterday, Mrs McAleese flew by helicopter to the town of Nizwa, 175 kilometres inland of Muscat, to view the Nizwa fort, dating from 1649, and the nearby irrigation works. In the evening she met members of the local Irish community and Friends of Ireland at a reception in her hotel hosted by the Irish Ambassador, Mr Conor Murphy, who is based in Saudi Arabia, and Dr Muhamed Darwish, the honorary consul of Ireland in Oman. Guests included the Omani Minister for Oil and Gas Dr Mohammed Al Romhi.

In her address, Mrs McAleese thanked the many people in the Gulf area who had worked with the Irish community, especially Mr Terry Johar, who had worked tirelessly in organising Irish functions and keeping contact alive between members of the Irish community.

The Irish communities in Oman and the other Gulf States, Mrs McAleese said, were very much part of the global Irish family. They had been coming to the region for more than 50 years and had built up a very enviable reputation.

"Many of you work in the caring professions, such as teaching and medicine; others have gone into business with local partners and have succeeded spectacularly."

They were, Mrs McAleese said, the harbingers of the success that had now been achieved in Ireland.