Saudi Arabia’s National Development Fund Secures SR5 Billion in Credit Facilities
RIYADH, July 7, 2025 — Saudi Arabia’s National Development Fund (NDF) has successfully secured SR5 billion ($1.3 billion) in credit facilities through two major agreements with Al-Rajhi Bank and Arab National Bank. This landmark financial arrangement is set to bolster the Kingdom’s economic growth by empowering 12 affiliated development funds and banks to accelerate national transformation and support key development projects.
Strategic Agreements to Boost Economic Growth
The two credit facility agreements were signed at the NDF headquarters in Riyadh, marking a significant milestone in Saudi Arabia’s ongoing efforts to diversify its economy and enhance the role of the private sector. The facility from Al-Rajhi Bank amounts to SR3 billion with a 12-month duration, while the Arab National Bank’s contribution totals SR2 billion.
These funds are intended to provide critical financial backing to development banks, enabling them to implement strategic projects aligned with the Kingdom’s Vision 2030 goals. The agreements emphasize the importance of public-private partnerships (PPPs) in driving sustainable economic growth and reducing government reliance on direct funding.
Empowering Development Funds and Banks
Khalid Shareef, Vice Governor of the National Development Fund, highlighted the strategic nature of these agreements, stating that they align with the NDF’s mission to strengthen collaboration between government entities and private financial institutions.
“The goal is to provide credit products to the development system through the fund and its associated development banks,” Shareef explained. “This will empower these institutions to effectively implement their strategic projects and expansion plans, thereby increasing their contribution to economic growth and supporting the objectives of Saudi Vision 2030.”
Supporting Vision 2030 and Private Sector Growth
Saudi Arabia’s Vision 2030 aims to transform the Kingdom into a leading global economic hub by diversifying its economy beyond oil. A key target is to increase the private sector’s contribution to GDP from 40% to 65% by 2030. The credit facilities secured by the NDF are a vital step toward achieving this by:
- Facilitating the development of infrastructure, renewable energy, and technology projects.
- Enhancing the efficiency and coverage of public services through PPPs.
- Encouraging private investment and reducing the fiscal burden on the government.
Jaber Al-Salah, chairman of the academic chapter of the World Association of Public-Private Partnership Units and Professionals, noted that PPPs offer numerous benefits, including improved public asset efficiency and better service quality, making them an attractive option for both government and private investors.
Overview of the Credit Facilities
| Bank Name | Credit Facility Amount (SAR) | Duration | Purpose |
|---|---|---|---|
| Al-Rajhi Bank | SR3 billion | 12 months | Support development projects and funds |
| Arab National Bank | SR2 billion | Not specified | Empower development banks and PPP projects |
Impact on Saudi Arabia’s Development Landscape
The infusion of SR5 billion into development funds and banks will accelerate the delivery of major projects across various sectors, including infrastructure, renewable energy, and technology. This financial boost is expected to:
- Speed up national transformation initiatives.
- Increase private sector participation in the economy.
- Enhance the quality and efficiency of public services.
- Strengthen the Kingdom’s position as a global economic center.
Conclusion
Saudi Arabia’s National Development Fund’s securing of SR5 billion in credit facilities through Al-Rajhi Bank and Arab National Bank represents a strategic move to fuel economic growth and support Vision 2030. By empowering development banks and fostering public-private partnerships, the Kingdom is taking decisive steps toward sustainable development, economic diversification, and enhanced private sector engagement.
This milestone underscores the collaborative efforts between government institutions and private financial entities to build a resilient and diversified economy for the future.
