The Crown Prince of Saudi Arabia, Mohammed bin Salman bin Abdulaziz Al Saud, who is also the First Deputy Prime Minister and the Chairman of the National Development Fund (NDF), has directed the NDF to inject investments of $151.9 billion (SAR 570 billion) into the economy to catalyse the kingdom’s GDP growth.
Additionally, Prince Mohammed bin Salman has directed the NDF to target more than a threefold increase of non-oil GDP to reach $161.25 billion (SAR 605 billion) by 2030, which also aims to generate new job opportunities in the kingdom.
The announcements were made when the Saudi Crown Prince launched the fund’s latest strategy during its Board of Directors meeting.
The role of Saudi Arabia’s National Development Fund
The NDF was established by Royal Decree No. (A/13) based on the Crown Prince’s recommendation to set up affiliated development funds and banks, according to the state-run Saudi Press Agency.
The NDF has injected more than $183.9 billion (SAR 690 billion) through its affiliates since its inception, becoming one of the largest development finance funds in terms of the ratio of assets to GDP in G20 economies, with assets amounting to $132.3 billion (SAR 496 billion).
The Saudi Crown Prince Mohammed bin Salman said: “The NDF’s strategy aspires to create a long-term and sustainable economy by transforming the fund into a Development Finance Institution (DFI) to contribute to achieving the Saudi Vision 2030 objectives.
“Through its development funds and banks, the fund seeks to stimulate a threefold increase in the private sector’s development impact on the Kingdom’s economy by 2030.”
The Vice Chairman of the NDF Board, Muhammad bin Mazyad Al-Tuwaijri, said: “This is a step that reflects our firm commitment to transform into an integrated development financing institution.”
“We intend to achieve these goals by transforming the kingdom’s economy from an economy dependent on government spending, to an economy led and integrated by the private sector, in addition to encouraging exports and local industries, achieving financial sustainability, and working as an effective tool to face the fluctuations of economic challenges.”
Saudi Arabia reveals the National Development Fund’s strategy
The NDF’s strategy will support the kingdom’s development objectives by securing liquidity for development funds and banks, in addition to enabling the achievement of a sustainable business model.
Furthermore, the NDF’s strategy aims to implement initiatives concerned with improving performance and transparency, increasing efficiency and effectiveness, and developing internal capabilities required to meet the objectives of the NDF for long-term development financing.
The Governor of the NDF, Stephen Groff, said: “At NDF, we have a huge opportunity to enhance the efficiency of government development funds and banks in terms of identifying and investing in financing opportunities across the kingdom.
“Our goal is to become a global brand of excellence in development finance through integration, alignment, and facilitation of synergies between partners. These plans are centered around cementing robust and sustainable financial institutions that function according to global best practices.”
Groff added: “As the NDF’s strategy gains momentum, we will bear fruit in ensuring high levels of prosperity, improving the quality of life, generating new and sustainable jobs, and positioning the kingdom as a new hub of foreign investments. Today, we are at the crossroads of big things to come, venturing forward in our quest to make HRH Crown Prince’s Vision a reality and lead the world in different areas.”
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