NDF Commits $16.2 Billion Annually to Fuel Vision 2030 Diversification

Stephen Groff, the governor of the National Development Fund (NDF), revealed that the fund is currently actively deploying around SR 60 billion, that is approximately $16.2 billion, per annum to back up the economic diversification aspects of the Vision 2030.
While attending the Momentum 2025 event, Groff illustrated the resourcefulness of NDF in combining the already existing capital, which is roughly equivalent to SR 430 billion, to not only provide heritage funds with more power but also create 6 brand new ones. These new funds are earmarked for such areas as tourism, SMEs, cultural projects, events, and import-export financing.

Groff stated that the plan did not call for any additional government transfers. The funds have been set up in such a way that they can tap into the capital that was set aside earlier, thus maintaining their financial sustainability while on the other hand, they are able to support different sectors with growth opportunities.
In the future, the NDF might consider the option of securitizing some of the assets in its portfolio and may also decide to issue bonds on foreign markets. These moves will enable the fund not only to increase its capacity but also to be able to bring in international capital for Saudi projects which is a very important step in diversifying financing sources beyond the conventional banking ones.

The transformation of NDF’s role is indicative of a larger change in development finance whereby less reliance is placed on central state funding and more on private investment, capital markets as well as alternative financing instruments. For Vision 2030, it might result in quicker growth, more sectors being diversified and stronger resilience against global energy and commodity cycles.