Custodian Appointment: The National Development Fund (NDF) has appointed Northern Trust as custodian for its assets, consolidating over SAR 60 billion in development funds and banks' assets in Saudi Arabia.
Objectives and Impact: The partnership aims to enhance asset management, improve financial transparency, and increase operational efficiency, supporting the NDF’s goals of economic returns and financial sustainability in line with Saudi Vision 2030.
Northern Trust's Role: With over 37 years of experience in the Middle East and a new regional headquarters in Saudi Arabia, Northern Trust will manage daily financial operations, safeguard assets, and provide comprehensive reporting, reinforcing its commitment to regional development and client service.
Riyadh, August 22, 2024
In a pivotal move as part of its transformation into a global development finance powerhouse, the National Development Fund (NDF) has appointed the Northern Trust Company of Saudi Arabia (Northern Trust) as its custodian for assets under management. This significant appointment, announced today, marks one of the largest custody projects in the world by assets under management. Northern Trust will oversee the consolidation of development funds and banks' assets in Saudi Arabia into a unified portfolio estimated to exceed SAR 60 billion.
The primary objective of this agreement is to bolster the NDF’s capabilities and further its strategic goals. As custodian, Northern Trust will be instrumental in transferring capital from various development funds and banks into the NDF’s centralized management. This consolidation is expected to enhance asset management practices, improve financial transparency, and streamline operational efficiencies. By integrating and simplifying financial operations related to asset management, the NDF anticipates reduced operating costs, increased effectiveness, and bolstered financial security. These improvements are anticipated to support the NDF’s mission of achieving higher economic returns and ensuring long-term financial sustainability, which will have a positive ripple effect on the national economy and sustainable development within the Kingdom.
The selection of Northern Trust aligns seamlessly with the NDF's strategic objectives. Established to enhance the performance of development funds and banks, the NDF seeks to ensure these entities meet their development and economic goals in alignment with Saudi Vision 2030. Northern Trust’s extensive experience in the Middle East—spanning over 37 years—along with its recent establishment of a regional headquarters for the Middle East and North Africa in Saudi Arabia, underscores its strong regional presence and commitment.
Northern Trust’s role will encompass safeguarding the fund’s assets, executing daily financial operations, recording transactions, and providing comprehensive reports on asset status and performance. Khalid bin Ibrahim Sharif, Vice Governor of the NDF, expressed enthusiasm about this development, stating, "The fund contributes to achieving the goals of Saudi Vision 2030 by improving the efficiency of the development finance ecosystem in the Kingdom and enhancing the financial sustainability of development funds and banks. This leads to sustainable growth, economic diversification, and improved productivity by ensuring the effectiveness of development finance programs, projects, and initiatives." He further highlighted, "We are pleased to choose Northern Trust, a global provider of asset servicing solutions, given their extensive experience with prestigious institutions, sovereign wealth funds, and development agencies."
In response, Kholoud Al-Dosari, Country Head of Northern Trust in Saudi Arabia, remarked, "We are delighted to have been selected by the NDF as custodian. Northern Trust is committed to expanding its services across the region, investing in infrastructure development, and enhancing skills and expertise to support clients and drive progress in the local market. We remain focused on delivering world-class services and solutions that exceed the evolving needs of our clients."
This landmark agreement not only reinforces Northern Trust’s role in the Kingdom but also marks a significant step forward for the NDF in achieving its ambitious goals and supporting the broader objectives of Saudi Vision 2030.