The National Development Fund (NDF) – a Saudi sovereign fund – was established on October 16, 2017, by order of King Salman bin Abdulaziz.
Headed by Prince Mohammed bin Salman Al Saud; Board of Directors of the National Development Fund, and Mohammed Mazyad Al-Tuwaijri; Vice Chairman of the National Development Fund and Stephen Paul Groff; Governor of the National Development Fund, Faisal bin Fadel Al-Ibrahim; Secretary of the Board of Directors of the National Development Fund.
The National Development Fund (NDF) was established with the main objective, which is to raise the level of performance of development funds and banks in the Kingdom to work together to achieve the goal of its existence, at the same time and through coordination between the activities of the Fund and other development banks.
The Fund works to serve development priorities and economic needs to achieve the Kingdom’s Vision 2030, thus achieving its vision of being a distinguished global brand in development finance through alignment, integration, and facilitation among partners to enable the economic transformation of the Kingdom of Saudi Arabia.
1. General regulatory, supervisory, and executive supervision of development funds and banks.
2. Take what is necessary to achieve integration and coordination between development funds and banks in a way that contributes to achieving their objectives.
3. Take what is necessary to raise the adequacy of financing and development lending and enhance its sustainability in development funds and banks.
4. Review the terms of reference, strategies, organizations, and structures of development funds and banks and their implementation plans, and the financing and lending mechanisms in force in these funds and banks, and update them to meet the requirements of development priorities.
5. Participate in representing the Kingdom in regional and international organizations, bodies, forums, and conferences related to the Fund’s competencies
Development funds of the National Development Fund
The Saudi National Development Fund works in an integrated manner with banks and other development funds in the Kingdom of Saudi Arabia. To the date of writing this article, 10 banks and development funds officially belong to the Fund. Below are its affiliated funds and an overview of each of them:
Real Estate Development Fund
The Real Estate Development Fund started its activities in 1395 AH, and the main objective of establishing this fund was to contribute to the construction of modern housing, in addition to residential complexes in various parts of the Kingdom of Saudi Arabia.
Saudi Industrial Development Fund
The Saudi Industrial Development Fund is considered the main financial enabler for the process of industrial transformation in Saudi Arabia. Through its journey that began 45 years ago, it played a clear pioneering role in the processes of developing and implementing industrial development policies and programs, to be followed by the National Development Fund.
Saudi Fund for Development
Not only on the local scale, but the Kingdom of Saudi Arabia has been interested in contributing to the financing of development projects in many developing countries, and this is done through the Saudi Fund for Development and by granting loans to those countries, in addition to providing grants for technical aid to finance studies and institutional support, in addition to working on Providing financing and guarantee for national non-oil exports.
Human Resources Development Fund
The Human Resources Development Fund “Hadaf” is considered one of the most prominent mechanisms that work to achieve the Saudi strategic goal in localizing jobs in the private sector, as the fund works to provide qualified and trained scientific cadres of young Saudi men and women to enter the labor market.
Social Development Bank
The Social Development Bank has now become one of the most important government pillars in the field of providing soft development financing programs to citizens in various regions in the Kingdom of Saudi Arabia.
Agricultural Development Fund
To support the agricultural sector and workers in this field, the Saudi Agricultural Bank was established to be a specialized government credit institution affiliated with the National Development Fund, working to provide financing for various fields related to agricultural activity in all regions in Saudi Arabia.
Tourism Development Fund
The Tourism Development Fund in Saudi Arabia works to stimulate and enable the development of the tourism sector, as it is one of the vital sectors. In addition, it works to attract tourism investments to the Kingdom.
The Events Fund is an investment fund that is organizationally linked to the Saudi National Development Fund. The Events Fund aims to build strategic partnerships to maximize the impact in the targeted sectors (culture, entertainment, sports, and tourism).
Cultural Development Fund
The Cultural Development Fund aims to actively participate in supporting cultural development and any related fields in the Kingdom, to ensure its sustainability following the approved strategies. It is worth noting that the Cultural Development Fund is also an investment fund that is organizationally linked to the National Development Fund.
Small and Medium Enterprises Bank
In February 2021, the Cabinet approved the establishment of the Small and Medium Enterprises Bank, so that this bank will contribute to the development of small and medium enterprises, in addition to raising their contribution to the domestic product, and achieving financial stability for them.
The National Development Fund and Vision 2030
Vision 2030 is an ambitious long-term plan to build a vibrant society and a thriving economy for an ambitious nation that harnesses the strengths of the Kingdom to help its citizens achieve their aspirations.