Vice Chairman of NDF Board: Supporting SMEs and Enhancing Infrastructure Is key To Sustainable Development

Riyadh 10 Shaaban 1445 AH/20 February 2024, SPA

His Excellency Vice Chairman of the NDF Board of Directors, Mohammed bin Mazyad Al-Tuwaijri, stressed the importance of supporting the SME sector and enhancing the Kingdom’s infrastructure in order to achieve sustainable economic and social progress. In this context he stated that “The SME sector is a fertile ground for generating job opportunities for Saudis. On this account the sector receives financial support and funding from the SME Bank and other development financing institutions.”

Addressing the opening session of the 3rd edition of the Saudi Capital Market Forum 2024 (SCMF), themed “Empowering Growth”, Al-Tuwaijri explained that the NDF was established to address the past challenges that adversely affected the achievement of the Kingdom’s development priorities. He elaborated on how the NDF fulfills its role by supervising and leading 12 development funds and banks, strategically utilizing capital to bridge financing gaps in the priority development sectors.

He added saying that: “The NDF is working to coordinate and integrate the operations of its supervised entities (SEs), particularly regarding medium- and long-term development financing needs. To achieve this particular initiative, the NDF aims to boost their efficiency and financial sustainability, ensuring that they remain aligned with the goals of the Saudi Vision 2030.” He further ascertained the NDF’s commitment to support investments that drive productivity and economic diversification, ultimately raising the private sector’s contribution to the GDP up to 65%.

“Globally, the SME sector is recognized as a significant generator of new job opportunities, contributing 80–90% of new jobs in most countries,” Al-Tuwaijri added. “In Saudi Arabia, the majority of the private sector institutions fall within this category, further emphasizing their importance; this is why the Fund strives to maximize its participation and enhance its developmental impact to the fullest.”

Al-Tuwaijri highlighted the NDF endeavors through its affiliated funds and banks that aim to stimulate the private sector’s contribution and maximize its developmental impact by more than three times on the Kingdom’s economy by 2030. Furthermore, he outlined the Fund’s strategy to inject more than SAR 570 billion to boost the GDP growth, as well as triple the share of the non-oil GDP to reach SAR 605 billion by 2030, thereby providing extra economic opportunities for all sectors, including micro, small, and medium-sized enterprises (MSMEs).

Al-Tuwaijri asserted the crucial role of the Kingdom’s current economic model in enabling the NDF to manage its resources efficiently, helping it maximize its developmental impact and remain resilient in the face of potential future crises.

It is worth noting that the Tadawul Group’s third edition of the SCMF Forum kicked off yesterday. Bringing together a distinguished group of financial sector leaders, government officials, importers, and investors, the Forum aims to foster collaboration and engage in constructive discussions that contribute to the development of the capital markets sector and empower the Saudi companies to reach a broader base of potential investors.

-END-