Saudi Arabia launches National Infrastructure Fund

Saudi Arabia launched a “National Infrastructure Fund” on October 25, 2021 to invest 200 billion Riyals in projects over the next decade.

Highlights

• National Infrastructure Fund will invest in water, transportation, energy, education, health, digital infrastructure, and communication.
• The fund will finance privatized infrastructure projects as well as create investment opportunities for these projects.
• It will provide innovative financing solutions, which in turn contribute towards enhancing the attractiveness of investment opportunities.
• It will also contribute to development of Gross Domestic Product (GDP) and will help in creating job opportunities.

Why was this fund created?

The fund was created as Saudi Arabia has been striving to diversify its economy. It seeks to reduce its dependence on oil by empowering the private sector & by offering different economic initiatives. This fund will contribute to achieving the goal of Saudi’s Vision 2030 by promoting projects.

Which organisation manage the fund?

The National Infrastructure Fund was launched by National Development Fund (NDF). It was launched after the Council of Ministers approved it as a subsidiary development funds and banks of NDF. NDF will manage this fund along with its system comprising of 11 development funds & banks.

Aim of the fund

The National Infrastructure Fund was created with the aim of contributing towards development of financial sector by finding alternative solutions for financing infrastructure projects. It will also encourage the private sector to invest in all these projects.

National Development Fund

This fund was established in 2017, to advance the performance of development funds and banks in Saudi Arabia. It empowers the development funds and banks to fulfil development priorities and economic obligations related to Vision 2030 of the kingdom.

Month: Current Affairs - October, 2021