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Saudi Crown Prince Launches New Strategy for National Development Fund

Saudi Crown Prince Mohammed bin Salman. (SPA)
Saudi Crown Prince Mohammed bin Salman. (SPA)
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Saudi Crown Prince Launches New Strategy for National Development Fund

Saudi Crown Prince Mohammed bin Salman. (SPA)
Saudi Crown Prince Mohammed bin Salman. (SPA)

Saudi Crown Prince Mohammed bin Salman, Deputy Prime Minister, and Chairman of the National Development Fund (NDF), launched on Monday the Fund’s strategy.

The strategy was announced during a meeting of the NDF’s Board of Directors.

The strategy aims to make the fund a pivotal enabler for the economic and social objectives of the Saudi Vision 2030 and overcome existing development challenges, in line with global best practices, reported the Saudi Press Agency.

"NDF’s strategy aspires to create a long-term and sustainable economy through transforming the Fund into a Development Finance Institution (DFI) that will contribute to achieving the objectives of Vision 2030," said Crown Prince Mohammed.

It seeks through its development funds and banks to stimulate a threefold increase in the private sector's development impact on the Kingdom's economy by 2030.

Moreover, NDF will contribute to Saudi Arabia's real GDP growth by injecting more than SAR 570 billion by 2030, added Crown Prince Mohammed.

Additionally, NDF targets to achieve more than a threefold increase of non-oil GDP to reach SAR 605 billion, in addition to generating many job opportunities in the Kingdom by 2030.

The NDF’s strategy activates the Kingdom’s development objectives by securing liquidity for the development funds and banks, in addition to enabling it to achieve a sustainable business model portfolio, and mobilizing the private sector to boost its role in development finance and take advantage of the harmonization, commercial and operational integration to serve the beneficiaries of the affiliated entities in securing long-term sustainable economic growth.

Furthermore, the NDF’s strategy aims to inaugurate initiatives concerned with improving performance and transparency, increasing efficiency and effectiveness, along developing the internal capabilities required to meet the aspirations and objectives of NDF for long-term development finance.

Muhammad bin Mazyad Al-Tuwaijri, NDF Vice Chairman of the Board, said the launch of the strategy "is a step that reflects our firm commitment to transform into an integrated development financing institution, which contributes to the development and diversification of the Saudi economy and boosts its prosperity; to consolidate the Kingdom's position at the global level."

"We intend to achieve these goals by transforming the Kingdom’s economy from an economy dependent on government spending to an economy led and integrated by the private sector," he stressed.

"We are confident that the National Development Fund will be one of the main pillars to turn these plans into a tangible reality," he added.

Stephen Groff, Governor of the NDF, said: "At NDF, we have a huge opportunity to enhance the efficiency of government development funds and banks in terms of identifying and investing in financing opportunities across the Kingdom."

"Our goal is to become a global brand of excellence in development finance through integration, alignment, and facilitation of synergies between partners. These plans are centered around cementing robust and sustainable financial institutions that function according to global best practices," he continued.

"As the NDF's strategy gains momentum, we will bear fruit in ensuring high levels of prosperity, improving the quality of life, generating new and sustainable jobs, and positioning the Kingdom as a new hub of foreign investments. Today, we are at the crossroads of big things to come, venturing forward in our quest to make the Crown Prince's Vision a reality and lead the world in different areas," he stressed.

The NDF was established by the Crown Prince's recommendation to set affiliated development funds and banks with robust and sustainable development that functions according to global best practices. The NDF is mandated to blaze a path for Vision 2030 goals and development agendas to be transformed into reality. The Fund oversees the financing activities carried out by its development funds and banks and aligns its various policies.

The NDF has injected more than SAR 690 billion through its affiliates since its inception, becoming one of the largest development finance funds in terms of the ratio of assets to GDP in G20 economies, with assets amounting to SAR 496 billion.

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Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.

Business

Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat

Saudi Minister of Finance Mohammed Aljadaan stressed Sunday that the world economy is going through a “profound transition,” saying emerging markets and developing economies now account for nearly 60 percent of the global Gross Domestic Product (GDP) in purchasing power terms and over 70 percent of global growth.

In his opening remarks at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla, the minister said these economies have become an increasingly important driver of global growth with their share of global economy more than doubling since 2010.

“Today, the 10 emerging economies in the G20 alone account for more than half of the world growth. Yet, they face a more complex and fragmented environment, elevated debt levels, slower trade growth and increasing exposure to geopolitical shocks.”

“Unfortunately, more than half of low income countries are either in or at the risk of debt distress. At the same time global trade growth has slowed at around half of what it was pre the pandemic,” Aljadaan added.

The Finance Minister stressed that the Saudi experience over the past decade has reinforced three lessons that may be relevant to the discussions at the two-day conference, which brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics.

“First, macroeconomic stability is not the enemy of growth. It is actually the foundation,” he said.

“Structural reforms deliver results only when institutions deliver. So there is no point of reforming ... if the institutions are unable to deliver,” he stated.

Finally, he said that “international cooperation matters more, not less, in a fragmented world.”

Business

Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
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Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Sunday that world growth still lacks pre-pandemic levels, expressing concern as she expected more shocks amid high spending and rising debt levels in many countries.

Georgieva spoke at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla.

The two-day conference brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics to deliberate on policies to global stability, prosperity, and multilateral collaboration.

Georgieva said that the conference was launched last year in recognition of the growing role of emerging market economies in a world of sweeping transformations.

“I came out of this gathering .... With a sense of hope for the pragmatic attitude and determination to pursue good policies and build strong institutions,” she said.

Georgieva stressed that “good policies pay off,” and said that growth rates across emerging economies reached four percent this year, exceeding by a large margin those of advanced economies that are around 1.5 percent.