Saudi Arabia’s National Development Fund (NDF) has secured $1.3 billion in credit facilities through agreements with Al-Rajhi Bank and Arab National Bank, aiming to accelerate development projects and strengthen its network of 12 affiliated development funds and financial institutions.

According to the Saudi Press Agency, the agreements support a broader strategy to drive sustainable economic growth and advance the Kingdom’s shift toward public-private partnerships (PPPs).

These efforts align with Vision 2030, which targets reduced reliance on government spending and increased private sector involvement in key sectors, including infrastructure, renewable energy, and technology.

The signing ceremony was held at the NDF’s headquarters in Riyadh. Khalid Shareef, vice governor of the NDF, said the initiative aims to strengthen collaboration between public financial institutions and the private banking sector.

“The goal is to provide credit products to the development system through the fund and its associated development banks,” Shareef said. “This will empower these institutions to effectively implement their strategic projects and expansion plans.”

Al-Rajhi Bank confirmed its share of the agreement is nearly $800 million over a 12-month term, intended to support development initiatives across the Kingdom.

“The agreement aims to strengthen the support of development projects in the Kingdom and enable the development banks of the development system to achieve their development goals, contributing to enhancing economic growth and accelerating the pace of national transformation,” they said in a statement.

In a post on X (formerly Twitter), the NDF emphasized that the agreements underscore its commitment to strengthening the growth of development funds and banks within its ecosystem.

The deals represent another step in Saudi Arabia’s broader push to diversify its economy and boost private sector contribution to GDP. This key Vision 2030 goal aims to raise it from 40% to 65% by the end of the decade.