The one-day conference in Cairo was organized by the 57-nation Organization of the Islamic Conference and also included representatives from the US, European nations, UN agencies and aid groups.

Host Egypt said the conference highlighted the importance of development in achieving peace and stability in Darfur.

"It is time has come to finally end the crisis and the end of this circular war in the region," said former South African president Thabo Mbeki at the opening session Sunday. "And so the livelihood of the Darfurians must be improved through development."

The fighting, which began with a 2003 rebellion by groups accusing the government of neglect, has dwindled over the past year and peace talks are under way in Qatar. Many of those displaced, however, are still living in camps and their future is one of the central unresolved issues. An estimated 300,000 people lost their lives to violence, disease and displacement.

"Egypt hopes the conference will provide an incentive to all Darfurian movements to join the peace process," an Egyptian statement said earlier in March.

Organizers said they want to raise funds through grants or loans for six development projects in the areas of water, health care, housing, education and rural development.

The return of refugees is one of the most contentious issues in the conflict. A majority are displaced within Darfur, but some also fled across the border to Chad.

Refugees fear the government is forcing their return to their villages or other areas to erase the most obvious manifestation of the conflict without actually dealing with the causes of the rebellion.