National Development Fund Strategy

The National Development Fund (NDF) Strategy is designed to enable the NDF to play a pivotal role in achieving the economic and social objectives of Saudi Vision 2030 as a Development Finance Institution (DFI). The strategy was launched by the Crown Prince, Prime Minister, and Chairman of the Board of Directors of NDF, His Royal Highness Prince Mohammed Bin Salman, on March 14, 2022.

The NDF strategy focuses on coordinating development support by activating the Kingdom of Saudi Arabia's development objectives and securing developmental financial savings for the beneficiaries of the fund through its affiliated entities. It ensures the sustainability of the NDF with the aim of enabling its affiliates to achieve a sustainable business model and portfolio, guaranteeing the continuation of development finance in the long term.

Key pillars of the strategy include facilitating financing and participation from the private sector to empower it to enhance its role in development finance. The strategy leverages harmonization and operational and commercial integration to better serve beneficiaries, alongside boosting the system's impact and efficiency. The strategy aims to implement initiatives that improve performance and transparency, increase efficiency and effectiveness, and develop first-class institutional capabilities by enhancing internal capacities required to meet the fund's aspirations and objectives.

The NDF strategy supports the sustainable development goals of all economic sectors by transforming the fund into an integrated national institution contributing to the objectives of Saudi Vision 2030. The strategy aims to stimulate the private sector’s contribution to the Kingdom's economy by more than threefold by 2030. Additionally, it aims for the fund to contribute to the growth of the real Gross Domestic Product (GDP) by injecting over SAR570 billion and to double the non-oil GDP to reach SAR605 billion by 2030.

The NDF strategy sets several objectives, including transforming the Kingdom’s economy from one dependent on government spending to one led by and integrated with the private sector. It also aims to encourage exports and local industries, achieve financial sustainability, and act as an effective tool to face economic challenges. Moreover, the strategy seeks to instill a culture of performance based on efficiency and transparency.

The strategy enhances the efficiency of government development funds and banks by identifying and investing in financing opportunities across the Kingdom. It aims to foster cooperative efforts to share services and minimize operational overlaps. Additionally, it aims to contribute to building a more robust and sustainable financial institution ecosystem that operates according to global best practices to achieve the fund's aspirations and objectives.

The NDF has launched several strategic initiatives prioritized based on their expected impact and ease of implementation to identify quick wins and high-quality initiatives. These include developing a model for private sector participation in infrastructure financing, assessing developmental challenges, developing regulatory solutions, addressing business and financing gaps, aligning efforts of affiliated funds and banks, developing a model to unify and manage the capital of affiliated funds and banks, and establishing a mechanism for baseline setting, evaluation, and continuous monitoring of developmental impact.