Minister of Economic Development and Trade, Mohamed Saeed, has announced that the Development Bank of Maldives (DBM) will play a central role in facilitating financing for crucial development projects across the country. The minister shared these insights through a recent social media post, outlining the bank’s future involvement with international financial institutions and investors.
Minister Saeed highlighted the challenges facing the Maldives as it transitions to middle-income status, which has led to a reduction in grants and concessional financing. He noted that while the country’s debt continues to grow, foreign exchange reserves as a percentage of GDP have remained unchanged, largely due to the nation’s reliance on imports.
In his statement, the minister emphasised the need for a financial institution with a long-term strategy to support the country’s development goals. He pointed out that the Development Bank would not only address immediate financial needs but also work with other financial entities to strengthen the Maldives’ financial system. The minister identified several key goals for the bank, including reducing wealth inequality, improving housing availability, alleviating the state’s debt burden, and revitalising underdeveloped regions.
In addition to offering loans, the Development Bank is expected to provide equity financing, fund syndication, and risk insurance—broadening the scope of its financial services.
The bank’s activities will focus on five priority areas: energy and food security, housing, environmental protection, tourism, and marine economic activities. By concentrating on these sectors, the DBM aims to support growth in industries crucial to the country’s long-term development.
Minister Saeed also addressed the ongoing issue of US dollar shortages, attributing the problem to systemic challenges within the financial system. He expressed optimism that the Development Bank would help attract foreign direct investment, which in turn could increase the availability of dollars in the Maldivian economy.
The introduction of the Development Bank as a partner in financing marks a significant step in the Maldives’ efforts to secure funding for key projects, and it is expected to enhance the country’s overall economic resilience.
