RIYADH: Saudi Arabia’s development finance system is turning strategic energy projects into tangible economic gains, with the NEOM Green Hydrogen Project demonstrating what public and private capital can achieve together, the governor of the National Development Fund said on Tuesday.
Speaking at a keynote session titled “Powering the energy transition: The role of development Institutions in Energy” at the WPC Energy Congress in Riyadh, Abdulaziz Al-Arifi said energy is among the key sectors where financing, investment and national capabilities converge.
“Investment in energy powers industrial activity, supports the growth of cities, strengthens business competitiveness, and improves quality of life,” he said.
Al-Arifi said the NDF brings together 12 government funds and banks under a shared goal of translating the Kingdom’s potential into economic and development opportunities in line with Vision 2030.
The integrated model enables the system to address development needs more comprehensively by combining financing, strategic investment, national capabilities and partnerships to help sectors grow and compete.
Al-Arifi highlighted the NEOM Green Hydrogen Project, described as the world’s largest of its kind, with total investment exceeding SR31 billion ($8.3 billion).
The National Infrastructure Fund and the Saudi Industrial Development Fund, alongside local and international banks and financial institutions, played key roles in enabling the project, he said.
The project is now 96 percent complete and on track to begin commercial operations in 2027. It is designed to produce up to 600 tonnes of green hydrogen per day, which will be used to manufacture green ammonia for export to global markets.
Beyond opening a new segment of the energy sector, the project has created more than 16,000 job opportunities across its construction and operational phases, strengthened local supply chains and attracted investment, he added.
“These outcomes demonstrate how developmental finance can translate strategic projects into sustainable economic and developmental opportunities,” Al-Arifi said.
He described the project as evidence of what is possible “when ambitious vision, developmental finance, and private capital come together.”
Balancing security and sustainability
Al-Arifi said the development finance ecosystem supports the energy sector by enabling projects, unlocking investment and building national capabilities, in line with the Kingdom’s approach of balancing energy security with sustainability.
Energy investment also generates new opportunities across industry, technology and services, he noted.
As the global energy landscape evolves at an unprecedented pace, new opportunities for investment and innovation are emerging, Al-Arifi said, highlighting the growing importance of partnerships that can turn those opportunities into lasting projects.