The Economic Ministry has submitted an application to the Maldives Monetary Authority (MMA) for a license to establish the Development Bank of Maldives.
Development banks play a vital role in promoting economic growth and social development by providing long-term funding and support for projects that may not attract private investment due to high risks or long development periods. These institutions focus on sectors such as infrastructure, agriculture, industry, education, healthcare, and housing. By doing so, they help stimulate economic growth, reduce poverty, and improve living standards.
Economic Development and Trade Minister Mohamed Saeed announced the application this morning through a post on X. Speaking to the state media; the Minister highlighted that the bank’s board would include two financial experts with extensive experience in managing international banks. The government has also completed the necessary business plan and feasibility studies to ensure the bank’s success.
According to the Minister, while the MMA processes the license application, the government will prepare a building for the bank’s operations. Although the initial target was to complete preparations this month, the timeline was extended to recruit top experts for the initiative.
The Development Bank of Maldives aims to address the challenges in funding Public Sector Investment Programme (PSIP) projects through syndication finance. Additionally, it seeks to enhance the attractiveness of foreign exchange deposits within the domestic banking system. By providing financial resources, technical expertise, and capacity-building efforts, the bank will support a wide range of development projects, promoting sustainable and inclusive growth.
This institution is expected to bridge the financing gap for projects with high social impact and support innovative ventures that drive technological advancements and environmental sustainability.
