Interview: Stephen Groff, Governor, National Development Fund, on driving innovation, partnerships and inclusive development
How are financing priorities across development funds being aligned with the goals of Vision 2030?
STEPHEN GROFF: What began as six banks in development financing has grown into a network of 12 specialised entities working to advance economic and social progress by channelling financing to priority sectors, encouraging private investment and improving spending efficiency. These efforts aim to contribute over SR570bn ($151.9bn) to real GDP and more than triple non-oil GDP to SR605bn ($161.3bn) by 2030.
What drives funding decisions for sectors impacting technology, sustainability and human capital?
GROFF: Funding criteria are designed to maximise developmental impact, with a focus on proposals that support diversification, job creation and private sector participation. Priority is given to projects with strong sustainability credentials, including social responsibility, environmental stewardship and long-term viability. In technology, emphasis is placed on initiatives that drive innovation, enhance digital infrastructure and build local capabilities. Sustainability efforts focus on renewable energy, resource efficiency and environmental conservation. Investments in human capital prioritise education, vocational training and skills development.
In what ways can development funds and banks pursue expansion while avoiding functional or resource overlaps with government entities?
GROFF: This involves providing strategic oversight, guidance and frameworks. Current priorities include addressing financing gaps, fostering collaboration and promoting best practices in development finance. Capacity building remains central, with efforts to expand the range of financial products and services. Clear roles, strategic planning and coordination help prevent overlaps and ensure efficient resource allocation. These efforts are informed by assessments of the development landscape and supported through regular dialogue with government bodies, dedicated coordination mechanisms and data-driven decision-making.
To what extent does development funding balance large-scale infrastructure projects with small and medium-sized enterprise (SME) support?
GROFF: Infrastructure projects are central to building a diversified, resilient economy by generating employment, improving connectivity and enhancing competitiveness. Development funds and banks play a key role in structuring and financing these initiatives, often in partnership with the private sector. SMEs are strongly supported as drivers of growth and job creation, with tailored financing solutions to facilitate capital access, expand operations and foster innovation. Ongoing efforts also promote financial inclusion, entrepreneurship and regional development. The overarching goal is to create opportunities for all citizens to contribute to – and benefit from – continued prosperity.
How are development funds encouraging greater participation from local and international investors?
GROFF: Strategies include transparent frameworks, competitive returns, risk mitigation and a supportive regulatory environment. Public-private partnerships (PPPs) are central, combining public and private sector strengths to deliver infrastructure and services efficiently. Development finance institutions structure and facilitate PPPs to align with national priorities and unlock investment, innovation and growth opportunities. At end-2024 these efforts generated SR74m ($19.7m) in returns from the Sustainability Support Programme, secured SR600m ($160m) in new financing, provided over SR2bn ($533.2m) in services to government entities and recovered SR294m ($78.4m) from legacy loans. Looking to 2030, the goal is to leverage private contributions to more than triple the developmental impact on the economy through refined policies, strengthened PPPs and improved resource efficiency.
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