MUSCAT: Looking beyond oil, India and the six nation Gulf Cooperation Council (GCC) have decided to work together in new areas including information technology, manufacturing and tourism.

After two days of deliberations during the second GCC-India business conference, both sides decided to forge an economic partnership that would focus on joint ventures driven by private initiative.

Muscat Declaration

In the Muscat Declaration, that was unveiled at the end of the conference, it was decided that information technology, biotechnology, tourism, industry, energy and petrochemicals would become the core areas of collaboration.

"The Gulf countries have decided to diversify their economies to cater to their growing population demands while India has taken a strategic decision to deepen its economic ties with the Gulf countries. The result is a new found political will to collaborate," Arun Patankar, Principal Adviser to the Confederation of Indian Industry (CII) told The Hindu .

To engage more deeply

The GCC comprises Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and the United Arab Emirates (UAE). Some delegates at the meeting pointed out that the political leadership in key GCC countries, such as Saudi Arabia and Oman, had signalled its intent to engage more deeply with countries, including India.

"King Abdullah Abdulaziz (of Saudi Arabia) visited India. He opened the door through which I now wish to enter," Loay M. Z. Redwan, a Riyadh based business consultant on Small and Medium Enterprises (SME) said.

Development of SMEs

Diplomatic sources pointed out that the fall-out of the September 11, 2001 attacks in the United States had created a less favourable living environment for GCC nationals in the West. Consequently, Arab countries had begun looking for greater opportunities in the "East." The conference decided to emphasise the development of SME's.

The concept of an SME had not been strictly defined in most of the GCC countries. But in Saudi Arabia, an SME usually employs between 10 and 100 workers.

Focussing on the "knowledge economy," it was decided that ties ups in Research and Development, higher education involving scientific and research institutes and establishment of "joint centers" for science and technology would received special attention.

"Exchange of experiences" in biotechnology, health and pharmaceuticals was also stressed. Analysts point out that the Knowledge Oasis Muscat (KOM), a 68-acre campus that is connected with Muscat by a 32-kilometer "knowledge corridor," is one location where information technology development was possible.

Other economic sectors

The declaration formalised that Free Trade Area (FTA) agreement between India and the GCC would include "other economic sectors," and would be finalised soon.

The visiting Commerce and Industry Minister, Kamal Nath had on Saturday said that the FTA would be expanded to include investments and services and would be ready by early 2007.

The next GCC-India business conference would be held in India during March 2007.

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