Saudi NDF and Italy’s CDP Sign MoU to Boost Development Cooperation

The National Development Fund (NDF) of the Kingdom of Saudi Arabia and Italy’s Cassa Depositi e Prestiti (CDP) signed a memorandum of understanding (MoU) in Riyadh aimed at strengthening development cooperation and establishing a structured framework for collaboration in development finance and investment, the Saudi Press Agency reported. The agreement was signed on the sidelines of a high-level meeting held at NDF’s headquarters in the Saudi capital by Abdulaziz bin Abdulrahman Al-Arifi, Governor of the National Development Fund, and Dario Scannapieco, Chief Executive Officer of Cassa Depositi e Prestiti.

The meeting was co-chaired by the two sides and brought together chief executives of relevant development funds and banks, along with representatives from both organizations. Is it not significant that two national development institutions, separated by thousands of kilometers yet united by a shared mission of long-term economic stewardship, have chosen to formalize their partnership at this particular moment in the global economic cycle? Participants discussed ways to strengthen development and economic cooperation between the Kingdom of Saudi Arabia and the Italian Republic, reviewing ongoing initiatives and future opportunities in project financing, joint investment, support for small and medium-sized enterprises, and trade and export finance.

Context and Background

What does it take for a national development fund to evolve from a domestic financing engine into a globally connected institutional investor? For the National Development Fund, established to supervise and advance Saudi Arabia’s network of development funds and banks, the answer lies in deliberate international engagement. The NDF serves as an umbrella organization that oversees entities including the Saudi Fund for Development, the Social Development Bank, the Saudi Industrial Development Fund, the Agricultural Development Fund, and the Real Estate Development Fund, among others. Each of these institutions carries a distinct mandate, yet all contribute to the broader architecture of Saudi Vision 2030.

Cassa Depositi e Prestiti, for its part, is Italy’s national promotional institution, with a history stretching back more than 170 years. It supports Italian enterprises, infrastructure, and public-sector investment, and it has increasingly looked beyond Europe for partnerships that align with its development finance objectives. The signing of this MoU reflects a convergence of interests: Saudi Arabia’s drive to diversify its economy and deepen international financial ties, and Italy’s interest in engaging with one of the most dynamic economic regions in the world. The meeting in Riyadh was not merely ceremonial; it was a working session in which both sides examined concrete avenues for collaboration.

The timing is instructive. As global markets navigate shifting interest rates, supply chain realignments, and the accelerating energy transition, development finance institutions are being called upon to play a countercyclical role, providing long-term capital where private markets may hesitate. The NDF-CDP partnership positions both institutions to pool knowledge, share risk, and co-invest in projects that might otherwise struggle to attract financing. For Saudi Arabia, this aligns with a broader strategy of building bridges with European partners across economic, technological, and industrial domains.

Key Details of the Agreement

What exactly does the MoU cover, and how will it translate from principle into practice? According to the Saudi Press Agency, the agreement encompasses the exploration of joint financing and investment opportunities, the exchange of knowledge and expertise in development finance, and the development of institutional and human capabilities. These three pillars form the operational core of the partnership, each addressing a distinct dimension of cooperation.

Critically, the scope of cooperation extends to the development funds and banks within NDF’s ecosystem, enabling them to benefit from relevant opportunities, expertise, and potential areas of collaboration under the MoU. This is a significant provision because it means the agreement is not confined to the NDF’s central leadership; it cascades down to the operational entities that finance housing, industry, agriculture, and social development across the Kingdom. The MoU also includes exploring financing and investment solutions that support priority sectors and encourage private sector participation, with the contribution of relevant development funds and banks.

Furthermore, the MoU enables both sides to identify priority initiatives and define the steps required to translate areas of cooperation into actionable projects. This emphasis on actionability distinguishes the agreement from aspirational declarations. By committing to a structured process for project identification and development, the NDF and CDP have laid the groundwork for tangible outcomes. The meeting also explored opportunities to leverage the financial instruments available to both sides and to strengthen connections among relevant entities to identify potential joint projects and initiatives. For observers of Saudi-Italian relations, the MoU represents a deepening of economic diplomacy that complements existing trade and investment flows.

International and Regional Impact

How might this partnership resonate beyond the bilateral relationship between Riyadh and Rome? The NDF-CDP MoU arrives at a time when Saudi Arabia is actively cultivating a network of international partnerships that span Asia, Europe, Africa, and the Americas. The Kingdom’s development finance institutions have increasingly taken on roles that extend beyond domestic lending, participating in co-financing arrangements, syndicated loans, and blended finance structures that mobilize capital from multiple sources.

For Italy, the agreement offers a channel into the Gulf’s rapidly expanding project pipeline, particularly in sectors such as renewable energy, infrastructure, logistics, and digital transformation. Italian companies with expertise in engineering, construction, and advanced manufacturing stand to benefit indirectly as joint projects materialize. Conversely, Saudi entities gain access to European markets, technical know-how, and a partner with deep experience in supporting small and medium-sized enterprises, a segment that is central to Vision 2030’s job creation ambitions.

At the regional level, the MoU signals that Saudi Arabia’s development finance ecosystem is open for business with European counterparts, reinforcing the Kingdom’s position as a hub for international economic cooperation. It also aligns with broader efforts to strengthen ties between the Gulf Cooperation Council states and the European Union, particularly in areas such as sustainable development, clean energy, and trade facilitation. The partnership is thus both a bilateral instrument and a contribution to a more interconnected global development finance landscape.

Economic and Strategic Significance

Why does development finance matter so much in the current global economic context, and what makes this particular partnership strategically valuable? Development finance institutions occupy a unique space in the capital markets: they can take longer-term positions, absorb risks that private investors avoid, and catalyze additional financing by demonstrating project viability. In an era of constrained fiscal space and heightened uncertainty, their role has become more prominent.

The NDF’s mandate is explicitly tied to enhancing the effectiveness and impact of development finance in Saudi Arabia. By partnering with CDP, the Fund gains access to a counterpart with decades of experience in structuring complex financing arrangements, particularly in infrastructure and SME support. The exchange of knowledge and expertise is therefore not a secondary benefit but a core objective. For CDP, the partnership provides a foothold in a region that is investing heavily in economic transformation, offering opportunities for co-investment that can generate stable, long-term returns.

The MoU also carries strategic weight in the context of Saudi Arabia’s efforts to diversify its international economic relationships. While the Kingdom’s ties with Asian and North American partners remain robust, deepening engagement with European institutions adds resilience and breadth to its global network. Italy, as a founding member of the European Union and a major industrial economy, represents a valuable partner in this regard. The collaboration on trade and export finance further underscores the commercial dimension of the relationship, potentially facilitating greater bilateral trade flows.

Vision 2030 Alignment

How does a memorandum signed in Riyadh connect to the sweeping economic and social transformation underway in Saudi Arabia? The meeting and the signing of the MoU form part of NDF’s efforts to strengthen partnerships with international development and financial institutions and to activate the role of its development funds and banks in exploring cooperation opportunities within their respective mandates. These efforts aim to enhance the effectiveness and impact of development finance and support the achievement of Saudi Vision 2030 objectives.

Vision 2030, launched under the leadership of Crown Prince Mohammed bin Salman, seeks to diversify the Kingdom’s economy away from oil dependence, expand the private sector, empower women and youth, and elevate the quality of life for citizens and residents. Development finance is a critical enabler of these goals. By forging international partnerships such as the one with CDP, the NDF enhances the capacity of Saudi development institutions to finance priority sectors, support entrepreneurs, and attract co-investment. The MoU’s emphasis on private sector participation and SME support directly echoes Vision 2030’s targets for employment, innovation, and sustainable growth.

As Saudi Arabia continues to position itself as a global hub for investment, diplomacy, and innovation, agreements like this one demonstrate the Kingdom’s commitment to constructive international engagement. The NDF-CDP partnership is a forward-looking step that links Saudi development ambitions with Italian expertise, creating a platform for joint projects that can deliver economic benefits for both nations. In the broader narrative of Vision 2030, it is another example of how the Kingdom is building the international alliances necessary to realize its long-term vision.

20 Questions

Q1. What is the National Development Fund?

A1. The National Development Fund is a Saudi government entity that oversees and supports the Kingdom’s development funds and banks, enhancing their effectiveness and aligning their work with Saudi Vision 2030 objectives.

Q2. What is Cassa Depositi e Prestiti?

A2. Cassa Depositi e Prestiti is Italy’s national promotional institution, supporting Italian enterprises, infrastructure, and public investment through long-term financing and development initiatives.

Q3. When and where was the MoU signed?

A3. The MoU was signed in Riyadh on September 30, 2026, at the headquarters of the National Development Fund, during a high-level meeting between the two institutions.

Q4. Who signed the MoU on behalf of Saudi Arabia?

A4. Abdulaziz bin Abdulrahman Al-Arifi, Governor of the National Development Fund, signed the memorandum on behalf of the Saudi side during the meeting in Riyadh.

Q5. Who signed the MoU on behalf of Italy?

A5. Dario Scannapieco, Chief Executive Officer of Cassa Depositi e Prestiti, signed the memorandum on behalf of the Italian institution.

Q6. What are the main areas of cooperation covered by the MoU?

A6. The MoU covers joint financing and investment opportunities, exchange of knowledge and expertise in development finance, and development of institutional and human capabilities.

Q7. Does the MoU extend to other Saudi development funds and banks?

A7. Yes, the scope of cooperation extends to the development funds and banks within NDF’s ecosystem, enabling them to benefit from opportunities and expertise under the agreement.

Q8. What sectors does the cooperation aim to support?

A8. The cooperation aims to support priority sectors and encourage private sector participation, with contributions from relevant development funds and banks.

Q9. How will the MoU translate into actionable projects?

A9. The MoU enables both sides to identify priority initiatives and define the steps required to translate areas of cooperation into concrete, actionable projects.

Q10. What was discussed at the high-level meeting?

A10. Participants discussed strengthening development and economic cooperation, reviewed ongoing initiatives, and explored opportunities in project financing, joint investment, SME support, and trade finance.

Q11. Who attended the meeting besides the signatories?

A11. The meeting was attended by chief executives of relevant development funds and banks, along with representatives from both the Saudi and Italian sides.

Q12. What is the significance of the MoU for Saudi-Italian relations?

A12. The MoU deepens economic diplomacy between Saudi Arabia and Italy, complementing existing trade and investment flows and opening new avenues for collaboration.

Q13. How does the MoU support Saudi Vision 2030?

A13. It enhances development finance effectiveness, supports priority sectors, encourages private sector participation, and helps achieve Vision 2030’s economic diversification and growth objectives.

Q14. What benefits does the NDF gain from the partnership?

A14. The NDF gains access to CDP’s expertise in structuring complex financing, particularly in infrastructure and SME support, and expands its international partnership network.

Q15. What benefits does CDP gain from the partnership?

A15. CDP gains a foothold in the Gulf region’s expanding project pipeline, with opportunities for co-investment in sectors such as renewable energy, infrastructure, and digital transformation.

Q16. How does this MoU fit into NDF’s broader strategy?

A16. It forms part of NDF’s efforts to strengthen partnerships with international development and financial institutions and to activate the role of its development funds and banks.

Q17. What role does development finance play in the global economy?

A17. Development finance institutions provide long-term capital, absorb risks that private investors avoid, and catalyze additional financing by demonstrating project viability.

Q18. Will the MoU facilitate trade between Saudi Arabia and Italy?

A18. Yes, the MoU includes cooperation in trade and export finance, which can facilitate greater bilateral trade flows between the Kingdom and Italy.

Q19. What is the expected timeline for implementing the MoU?

A19. The MoU establishes a framework for identifying priority initiatives and defining steps for implementation, with projects expected to materialize as both sides proceed.

Q20. What does this partnership say about Saudi Arabia’s global engagement?

A20. It demonstrates Saudi Arabia’s commitment to constructive international engagement, building alliances that support its long-term vision and contribute to global economic cooperation.

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