NDF’s new infrastructure fund targets mega development projects: official

Ahmed Al Jasser, Deputy Governor of National Development Fund

The new infrastructure fund, approved recently by the National Development Fund (NDF), will play a role in launching high-risk mega development projects, which are avoided by banks and investors, Ahmed Al Jasser, Deputy Governor at NDF, said.

The new fund will operate in coordination with the National Center for Privatization & PPP (NCP), Al Jasser said during a meeting organized by the Communication and Financial Knowledge Center.

It will also boost economy and partner with the private sector through providing financing and non-financing solutions, such as exemptions, exceptions, etc. It will also offer long-term funding to attract the private sector to mega development projects.

NDF will launch new funds from time to time, Al Jasser said, adding that few new funds are already in the launch phase to play certain roles in tandem with other funds.

It is also working with other funds and banks on studying standardized sources of capital, to enable funds raise the liquidity required for development objectives.

“Time is ripe for all funds to operate in an institutional manner under a single umbrella, in line with one strategic plan that serves all development goals,” Al Jasser noted.

The first initiative launched by NDF in cooperation with other development funds and banks to realize financial sustainability, was studying the mechanism of funds’ credit and investment portfolios. NDF is working on several initiatives, under the Crown Prince directives. It took important strategic decisions to enhance sustainability, including the standardization of treasury and investment operations.

The fund aspires to be an integrated development finance institution that contributes to the Kingdom’s economic transformation. It functions as a cushion against economic fluctuations, as was the case during the COVID-19 pandemic, without impacting the state budget. It also contributes to the Saudi non-oil gross domestic product (GDP) and helps provide new job opportunities, Al Jasser concluded.

Asharq Business reported that NDF was preparing the launch of a new fund targeting infrastructure projects in the Kingdom, according to the data available on Argaam.