The National Infrastructure Fund is a development fund that enables infrastructure projects and strengthens the development impact in vital sectors in the Kingdom of Saudi Arabia. It supports infrastructure projects worth around SAR200 billion and bodes financial and administrative independence. It is organizationally linked to the National Development Fund.
Establishment of the National Infrastructure Fund
On October 25, 2021, the National Development Fund announced the establishment of the National Infrastructure Fund, which was approved by the Council of Ministers as one of the development funds and banks affiliated with the National Development Fund. The fund’s headquarters are located in the capital, Riyadh. It consists of a chairman of the Board of Directors and a number of members. It has the competence necessary to achieve its goals, without detriment to the powers of the National Development Fund.
The fund can invest in cash or in kind from its capital or from available funds available. It also advises infrastructure facilities and government entities.
Goals of the National Infrastructure Fund
The National Infrastructure Fund aims to support and develop infrastructure projects in the Kingdom, in partnership with the public and private sectors. Moreover, it seeks to boost the gross domestic product and develop the financial sector by delivering alternative and innovative financing solutions. In addition, it seeks to stimulate the private sector to invest in its projects.
Powers of the National Infrastructure Fund
The National Infrastructure Fund provides financing; such as long-term and short-term loans, direct and indirect loans, and senior and subordinated loans for infrastructure projects and facilities. It also offers financing products developed by the fund and approved by the Board of Directors.
Furthermore, the fund can conclude contracts and agreements with governmental or private financing entities, having several purposes; such as providing full, partial, or additional financing. Moreover, the fund can contribute to the financing arrangements between the lender and the borrower, or endorse guarantees for infrastructure projects and facilities.
The fund also concludes agreements, contracts, and memoranda of understanding in the English language, related to its activity with parties involved, whether inside or outside the Kingdom. The contracts also include the requirement to resort to arbitration or conclude an arbitration agreement, provided that the fund benefits from it, and in accordance with the policies and controls set by the entity to which the fund is affiliated.
The National Infrastructure Fund purchases and sells debts to the public and private sectors, after evaluating them based on the controls and policies set by the entity to which the fund is affiliated. Moreover, the fund accepts mortgages or any form of fulfillment guarantees.
Sectors supported by the National Infrastructure Fund
The National Infrastructure Fund supports a number of vital sectors in the Kingdom, including: transportation, water, education, manufacturing, and communications and information technology. It also helps in achieving the Saudi Vision 2030 goals.
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