Shaikh Mohammed Al Harthy, Chairman of OEA, welcoming the guests, gave an overview on topics such as the economic stability and security of Oman, new challenges in the wake of knowledge-based economy and policies towards reducing gaps between developing and developed countries.

Differentiating between the 'New Growth Theory', which links the gross national product to knowledge, and the 'Old Theory" that recognised only labour and capital, Shaikh Mohammed said: "If countries want to divert towards a knowledge-based economy and, at the same time, want to enhance their economic growth, they will need to improve their technological level, increase savings and invest locally-saved capital in knowledge based dimensions."

He announced the establishment of sponsored annual awards to encourage applied economic researches and to present proposals for the future development of Oman. A Business Confidence Index (BCI) that would help identify weaknesses as seen by the business sector would also be set up, he added.

Dignitaries present included Dr Saud Al Riyami, President SQU, top officials from ministries, OEA, OCCI, diplomats and senior faculty and administration members from the university. Other speakers on the first day of the conference included Dr Mohammed Al Maryati, Regional Advisor on Science and Technology from UNESCWA, and Dr Mohsin Hilal, also from ESCWA. The conference aims at highlighting the vital role played by the private sector in economic development and at raising awareness on the concept of the new economy.