Saudi Crown Prince Mohammed bin Salman announced that the Saudi National Development Fund will contribute to the growth of the kingdom’s real GDP by pumping more than 570 billion riyals ($152 billion) into the economy by 2030.
It also aims to triple the share of non-oil GDP to 605 billion Saudi riyals (about $161 billion) during the same period.
The Saudi Crown Prince chairs the Board of Directors of the National Development Fund, and the launch is part of a strategy aiming to make it a pivotal enabler of the economic and social objectives of Saudi Vision 2030. It will meet existing development challenges in line with international best practices.
He said that the fund’s strategy aims to support the sustainable development goals of all economic sectors, by transforming it into an integrated national financial institution to contribute to achieving the goals of “Vision 2030”, pointing out that it aims, through development funds and banks to stimulate the private sector’s contribution to more than 3 times its development impact on the Saudi economy by 2030.
He pointed to the fund’s contribution to the real GDP growth of the Kingdom by pumping more than 570 billion Saudi riyals by 2030. The Saudi Crown Prince added that the fund also aims to triple the share of non-oil GDP by more than three times, allowing it to reach 605 billion Saudi riyals in 2030, in addition to creating many job opportunities in the Kingdom by that year.
What is the fund’s strategy based on?
The strategy is based on activating Saudi Arabia’s development goals by securing financial savings for development funds and banks, in addition to enabling them to achieve a business model and a sustainable portfolio.
It also seeks to empower the private sector in order to enhance its role in financing its development and benefit from commercial and operational integration to serve the beneficiaries of affiliated entities, and activate the relevant initiatives concerned with improving performance and transparency, while increasing efficiency and effectiveness.
The strategy as well aims at developing the internal capabilities required to achieve the aspirations and objectives of the Fund for the continuation of financing development programs in the long term.
The fund is one of the largest national development funds in terms of the ratio of assets to GDP in the G-20, with assets amounting to 496 billion Saudi riyals.
The fund was established by royal order, 4 years ago, at the recommendation of the Crown Prince, Chairman of the Council of Economic and Development Affairs, with the aim of raising the performance level of the affiliated development funds and banks to achieve the desired goals and keep pace with what serves development priorities and economic needs in light of the goals and foundations of the Kingdom’s Vision 2030.
The Fund supervises the financing activities carried out by its development funds and banks, coordinates policies, and has since its esablishment pumped over 690 billion Saudi riyals through its affiliates.
Deputy Chairman of the Board of Directors of the National Development Fund, Muhammad bin Mazyad Al-Tuwaijri, said that the official launch of the fund’s strategy “is a step that reflects our firm and permanent commitment to transforming into an integrated development financing institution, contributing to the development and diversification of the Saudi economy and enhancing its prosperity, to consolidate the Kingdom’s position at the global level.”
Development Fund Governor
As for the Governor of the National Development Fund, Stephen Paul Grove, he said that the successful implementation of the fund’s strategy will support efforts to achieve the Kingdom’s prosperity, improve the quality of life, create new and sustainable jobs, and raise the Kingdom’s reputation on the international scene in a step that leads to attracting more foreign investments.