National Development Fund has SAR 350 bln capital, mulls new infra fund: Governor

Stephen Groff, Governor, National Development Fund

The total capital of National Development Fund (NDF) amounted to SAR 350 billion, CNBC Arabia reported, citing the fund’s governor Stephen Groff.

He indicated that there are no plans to increase it currently.

NDF is working towards establishing an infrastructure fund, which will have various financial tools to satisfy the different needs of investors wishing to enter this field.

Groff expects the fund to be launched during the first half of 2021, noting that its size has not yet been determined.

COVID-19 affected all economic sectors, and the fund did not give priority to a specific sector over others. It provided support and resources to all sectors, the governor said, adding that equal support was provided to all.

Most of the resources were directed to small and medium-sized enterprises (SMEs), as they constitute the majority of government funded clients and were also the most affected by the pandemic’s negative consequences.

Groff clarified that aid came in favor of individuals and corporates in the form of restructuring existing loans, providing loans to working capital, and supporting sectors such as aviation and transportation.

He also added that the fund is trying to create a balance between how to combine the financial aspect of all funds and collect its capital in one portfolio, which will lead to a unified investment strategy.

“This process has been launched during the past two months and various options will be implemented early next year,” Groff stated.

NDF’s long-term strategy is to transform into an integrated development financing entity, where the focus will be on how to support private sector activity and encourage private investment.

The governor explained that the fund will neither replace commercial banks nor private financing institutions, but will rather integrate with them and provide incentives to private sector.

Groff highlighted that the fund is basically focusing on searching for ways to mitigate risks that prevent investors from entering basic or sub-sectors and using tools that reduce risks.