Jordan queen urges Arab oil states to spend on social causes

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AMSTERDAM — The huge national investment funds that Arab countries have created from their oil profits should be directed at building social equality and protecting the environment, Jordan's Queen Rania said Wednesday.

Investment by those sovereign wealth funds in social causes would build public trust and ultimately boost bottom lines, the queen said.

The wealth funds of a handful of Arab countries reportedly control more than $1 trillion.

"The issue of sovereign funds is coming under a lot of scrutiny. I believe transparency, reporting and accountability are integral elements in the way we do business because they build trust and bring integrity into the business world," she told The Associated Press in an interview.

"We need to move away from the mentality of charitable giving toward long-term social investment. We need to promote the concept of civic responsibility," she said.

She made no distinction between private corporations and the wealth funds controlled by national governments.

Arab countries have a long way to go to catch up with the rest of the world in corporate responsibility, Rania said, "but I think that is changing." Businesses increasingly understand, for example, they will benefit from reducing unemployment and illiteracy, she said.

Rania, the wife of Jordan's King Abdullah II, spoke on the sidelines of a conference of the Global Reporting Initiative, a network that encourages companies to submit detailed reports on their environmental and community policies.

The initiative, begun 10 years ago in the United States, has drawn up a comprehensive format for companies to report their environmental and social impact to investors, non-governmental organizations and consumers.

About 1,500 companies say they follow the guidelines, said Ernst Ligteringen, the network's chief executive. He said 80 percent of the leading European companies and about 60 percent of U.S. companies produce sustainability reports.

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On the Net:

Queen Rania's Web site: http://www.queenrania.jo

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