Riyadh: Saudi Arabia’s National Development Fund has secured SR5 billion ($1.3 billion) in credit facilities through two agreements with Al-Rajhi Bank and Arab National Bank.

The deals are designed to enhance funding for key development projects across the Kingdom, empowering its 12 affiliated development funds and financial institutions to drive economic growth and accelerate national transformation, according to the Saudi Press Agency.

The agreements represent a strategic move in the NDF’s push to promote sustainable development and strengthen Saudi Arabia’s private sector, reflecting the Kingdom’s increasing reliance on public-private partnerships to drive economic growth.

This approach supports broader efforts to reduce government dependence and enhance private investment in key sectors, such as infrastructure, renewable energy, and technology.

The pacts were formalized during a signing ceremony at the fund’s headquarters in Riyadh.

Khalid Shareef, vice governor of the NDF, said that the initiative aligns with the fund’s strategy to foster stronger partnerships between the government and private financial institutions.

“The goal is to provide credit products to the development system through the fund and its associated development banks,” Shareef said.

He added: “This will empower these institutions to effectively implement their strategic projects and expansion plans, thereby increasing their contribution to economic growth and supporting the objectives of Saudi Vision 2030.”

In a separate statement, Al-Rajhi Bank announced that the deal with NDF is valued at SR3 billion for a 12-month duration.

“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,” the statement said.

In a post on its official X account, the NDF said that the agreements are part of its “commitment to supporting development projects and empowering funds and banks within its ecosystem.”

Speaking to Arab News in February, Jaber Al-Salah, chairman of the academic chapter and member of the steering committee of the World Association of Public-Private Partnership Units and Professionals, explained how the deals align with the Vision 2030 drive to boost the private sector’s contribution to gross domestic product from 40 percent to 65 percent by the end of the decade.

“PPPs offer several benefits to the private party, making them an attractive option for collaboration.

These partnerships also support government objectives by improving public asset efficiency, enhancing service coverage, quality, and rationalizing spending,” he said.