Jeddah — The establishment of the National Development Fund (NFD) was meant to ensure new incentives for the Saudi economy with a capital of SAR 345 billion ($ 92 billion) pumped into the new fund.
The fund encompasses five other minor associate funds: the real estate fund standing at SAR 183 billion ($ 50 billion), the social development fund at SAR 46 billion (US $ 14 billion), the industrial development fund at SAR40 billion (US $ 1.5 billion), the Saudi development fund at SAR 31 billion (US $8.3 billion dollars), and the agricultural development fund of SAR 20 billion riyals (US $5.2 billion dollars).
The total capital of the five funds exceeds the capital of commercial banks operating in Saudi Arabia which stands at SAR 168.4 billion riyals ($ 48.8 billion) – placing the capital of the new entity close to twice as that of the combined capital of commercial banks.
Labor and Social Development Minister Dr. Nasser al-Ghafis said that “establishing the National Development Fund reflects the interest and keenness of the Kingdom’s wise leadership to continue supporting development programs and projects that serve the citizen directly and enhance national economy in line with sustainable development.”
Minister Ghafis stressed that the National Development Fund will raise the level of performance and productivity of funds and development banks in the Kingdom, working side by side with other government sectors to meet the aspirations of citizens in light of the economic development witnessed by the country.
The National Development Fund, which will supervise the functions of its affiliated bodies, will have a board of directors headed by the deputy prime minister and it will comprise a membership of not less than seven members nominated by the prime minister.
The board of directors of the National Development Fund will assume all tasks and powers, and make decisions, take progressive measures and other actions deemed necessary for establishing the fund.
The National Development Fund shall have a governor with a minister’s rank, who will be the executive officer of the fund.