April 30, 2026 – Press Release by the Ministry of Finance, the Ministry of the Economy, the Directorate of Defence and SNCI.

The Minister of Finance, Gilles Roth, the Minister of Defence, Yuriko Backes, and the Minister of the Economy, SMEs, Energy, and Tourism, Lex Delles, today presented the new National Defence Fund (NDF), designed to support start-ups, scale-ups, and innovative companies active in the defence and dual-use sectors. This new financial instrument, implemented by “Société nationale de crédit et d’investissement” (SNCI), is fully aligned with Luxembourg’s Defence Industry Strategy. It aims to contribute to the development of a high-performing and innovative national ecosystem in this strategic field.

The NDF is structured as a fiduciary agreement between the State of the Grand Duchy of Luxembourg and the Luxembourg Intergenerational Sovereign Wealth Fund (FSIL), acting as trustees, and SNCI acting as fiduciary. Specifically, the State and the FSIL entrust their NDF contributions to SNCI, which manages them within a clearly defined framework. The State and the FSIL together contribute 75 million euro. The SNCI will invest, through its own governance, 75 million euro co-investment funds, in conjunction with the investments made on behalf of the trustees under the trust agreement.

The investment policy will target key sectors defined in the defence strategy, such as cybersecurity, space, advanced materials, and automation.

The NDF will consider both investment funds and as well as direct investment co-investing with eligible funds, in accordance with its mandate to foster the creation of Luxembourg’s economic substance.

The NDF pursues three complementary objectives:

• To strengthen economic activity in Luxembourg, particularly through innovation and the development of ecosystems;
• To contribute to the country’s defense and security spending commitments, in line with NATO objectives; and
• To ensure the economic viability of investments made.

Investment decisions for both trustees will be made by an investment committee, guaranteeing clear governance aligned with strategic priorities. The NDF will also be able to leverage the long-standing cooperation between SNCI and the European Investment Fund (EIF).

The NDF aims to strengthen investment capacities based in Luxembourg, support national companies, and attract new activities. It will contribute to the generation of a sustainable economic substance, particularly through the creation of skilled jobs, especially in research and development. Collaboration with ecosystem stakeholders as well as international partnerships will be strengthened to support the sector’s growth.

Under the fiduciary agreement, SNCI will be responsible for the operational management of the NDF. Its responsibilities include preparing, recommending, and executing investments decided by the Investment Committee, as well as related tasks (portfolio monitoring, reporting, administrative, accounting, treasury management, and compliance). SNCI, acting as fiduciary, will establish a dedicated email address (info@fnd.lu) for all inquiries and requests for information regarding the terms and conditions.

Gilles Roth, Minister of Finance, stated: “With the National Defence Fund, Luxembourg is equipping itself with a modern and responsible instrument, capable of reconciling sovereignty, innovation, and financial rigor. By mobilizing public capital, we are supporting strategic technologies with high potential, while sustainably strengthening the country’s economic base. This initiative illustrates our commitment to invest in a targeted manner in Luxembourg’s security, competitiveness, and industrial future, within a clear and demanding governance framework.”

Yuriko Backes, Minister of Defence, adds: “Future conflicts demand cutting-edge technological responses. Innovation in the defence sector is a key pillar of our security, while also generating sustainable economic benefits, skilled jobs, and technological excellence for Luxembourg. It is a clearly stated political priority.”

Lex Delles, Minister of the Economy, SMEs, Energy and Tourism, explains: “The National Defence Fund is a strategic lever for strengthening our economic fabric and positioning Luxembourg as a key player in innovation in critical sectors. Through this initiative, we are continuing an existing momentum aimed at making defence and dual-use technologies a priority for economic development, with the ambition of positioning Luxembourg as a true innovation hub by supporting the development of innovative projects and facilitating the integration of our companies into European value chains.”

Joint statement from the Ministry of Finance, the Ministry of the Economy, the Directorate of Defence and SNCI.