Economic Minister Mohamed Saeed has reaffirmed that the rollout of the Development Bank of Maldives (DBM) is progressing on schedule, despite criticism of delays. Speaking on Sunday, the minister highlighted the structured, phased approach to the bank’s establishment, which prioritises institutional investors and large-scale infrastructure projects.
The creation of DBM was one of President Dr Mohamed Muizzu’s electoral pledges. Using his authority under the Companies Act, President Muizzu formed the Development Bank of Maldives Limited on May 16, 2024. The Economic Ministry subsequently applied for a licence from the Maldives Monetary Authority (MMA) on July 28, which was granted on October 13, 2024.
Phased Rollout and Economic Stability
Minister Saeed, in a post on X, stated that the rollout is divided into three phases. The first phase, focusing on institutional setup, is currently underway and progressing on schedule. Future phases will introduce retail banking services to broaden the institution’s reach.
He emphasised that this structured rollout aligns with the government’s broader economic goals. “Not just the DBM, but the stability is now brought in, overcoming the mess we were inherited from an irresponsible government which lacked complete discipline in managing public finance,” he stated.
DBM’s Strategic Vision
Development banks are financial institutions designed to introduce new businesses, industrial activities, and economic initiatives. They are often primary lenders for startups and large-scale projects, providing crucial support to economic growth.
President Muizzu has previously said that the DBM will play a key role in diversifying and expanding the Maldivian economy. The institution will focus on key sectors such as tourism, real estate, housing, and renewable energy, with an aim to make the bank a hub for investment and economic transformation.
Key Leadership and Board Members
In August 2024, President Muizzu appointed key figures to DBM’s leadership team. The appointments include:
- Chairperson: Aruni Goonetilleke, a Singaporean national.
- CEO: Noel Gregor Paterson-Jones, a British national.
- Board Members: Ahmed Ali (Maldivian), Saeed Abdul Nasir Bin Saeed Hassan Al-Junaid (Singaporean), and Robert Daniel Kant (British).
According to the President’s Office, DBM has been designed to align with the government’s policies, including funding for large infrastructure projects, investing in sustainable economic and social development, and addressing challenges in financing public sector investment projects (PSIP) through syndicated financing. Additionally, the institution seeks to encourage the retention of foreign exchange within the Maldivian banking system.
A Hub for Economic Transformation
The phased establishment of DBM reflects its strategic importance in driving long-term economic stability and development in the Maldives. By focusing on institutional investors and large-scale projects in its initial phase, DBM is positioned to fund transformative initiatives that align with the government’s vision for economic diversification.
With the rollout progressing as planned, the Development Bank of Maldives is expected to play a critical role in addressing financing gaps, supporting sustainable development, and creating a platform for robust economic growth in the years to come.
