Saudi establishes national development fund, appoints two ministers

Saudi Arabia has announced the establishment of a central body to control its development funds and appointed two new ministers.

The National Development Fund links the Saudi Fund for Development, the Saudi Industrial Development Fund, the Agricultural Development Fund, the Social Development Bank and the Human Resources Development Fund.

Of these, one of the largest is believed to be the industrial fund, which has a capital of at least SAR65bn ($17.3bn) and provides loans to industries including, chemicals, construction materials and food, according to Reuters.

Any other fund or bank can also be linked to the national fund under the orders of the country’s ruler King Salman.

For now the kingdom’s estimated $180bn sovereign fund the Public Investment Fund (PIF) is not included.

The National Development Fund will supervise the entities and have a board chaired by Crown Prince Mohammed Bin Salman, who is also chairman of the PIF and the face of the kingdom’s reform efforts.

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Six other members are to be appointed by King Salman.

“The board of directors of the National Development Fund shall assume all the tasks and powers and take decisions, measures and others as may be necessary to achieve the purpose of establishing the fund,” according to Saudi Press Agency.

“The National Development Fund shall have a governor with a minister’s rank, who is the executive officer of the fund.”

The experts committee of the kingdom’s Council of Ministers has been tasked with preparing draft regulation for the fund within 30 days.

The kingdom also announced the appointment of transport minister Sulaiman Al-Hamdan as minister of civil services.

He replaces Khaled Al-Araj, who was removed from the position in April after being accused of appointing his son to a senior role.

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Nabeel al-Amudi, the head of the Saudi Ports Authority, has been appointed transport minister.