NDF targets multiplier impact for each riyal injected; eyes new financing tools: Governor

Stephen Groff, Governor of the National Development Fund (NDF)

Stephen Groff, Governor of the National Development Fund (NDF), said the fund is committed to ensuring that every riyal injected into the market generates a multiplier effect by attracting additional investments, whether domestic or foreign.

Speaking to Argaam on the sidelines of the MOMENTUM 2025 conference, Groff added that all partnerships and agreements undertaken by the fund aim to create strong investment leverage and maximize the economic impact of financing.

He explained that the financing provided by NDF and its affiliated funds ranges between SAR 50 and SAR 60 billion annually, noting that financing volumes have grown by more than 10% annually over the past seven years.

The financing supports entrepreneurs, homeowners, and small, medium, and large enterprises across various sectors in the Kingdom, the Governor said. He expects financing volumes to continue growing in the coming period, albeit with a slight moderation.

The number of affiliated funds increased from six at the NDF launch in 2019 to 12 today, significantly enhancing financing availability in the Saudi economy.

NDF signed a large number of agreements during the conference, focusing on long-term partnerships with financial institutions to ensure sustainable and stable financing for citizens and the private sector.

Regarding the fund’s role in strengthening Saudi Arabia’s capital market, Groff said NDF consolidated treasury functions across its affiliated funds four years ago, improving the efficiency of financial resource utilization.

He confirmed that the fund currently manages a unified capital base of around SAR 430 billion.

This consolidation, he noted, paves the way for obtaining a future credit rating and issuing sukuk or bonds in financial markets, which would enable NDF to introduce structured financing instruments to its balance sheet, increase its lending capacity, and deepen the local debt markets.

The Governor added that the fund aims to introduce new financing tools over the medium term through obtaining an international credit rating that would allow it to issue debt instruments.

He explained that similar development funds around the world typically leverage their capital by 4 to 10 times, enabling significant expansion in financing capacity and attracting additional international funding to the local market.