In an announcement made yesterday, Maldives’ Minister of Economic Development and Trade revealed plans to recruit a seasoned foreign CEO for the upcoming Development Bank set to be launched in July.
“We are actively seeking one of the most accomplished chief executive officers globally,” the minister said during a press conference yesterday. “Our aim is to appoint an external CEO, complemented by a board comprising technically adept individuals. This will ensure robust governance,” he added.
Set to be launched in July, the Development Bank of Maldives Limited was established as a fully state-owned entity on May 16, under the authority granted to President Dr. Mohamed Muizzu by Section 15 of the Companies Act (Act No. 7/2023)
Earlier this month, the minister highlighted the positive reception from potential investors regarding the bank’s prospects while speaking at the signing ceremony of the Memorandum of Understanding (MoU) between the Ministry of Economic Affairs and the International Free Zone Authority (IFZA) of the UAE, aimed at administering the operations of the Special Economic and Financial Service Zone in Funadhoo.
“Investors have exhibited unwavering confidence in our venture, aligning with the established benchmarks or expressing readiness to do so,” the minister remarked.
Further, the minister announced plans to bring in a technical assistance team to create the foundational documents for the bank, drawing upon expertise from established banking systems worldwide, particularly in Dubai.
Emphasizing the importance of strong physical infrastructure to support financial services, the minister acknowledged ongoing efforts to establish necessary facilities in Funadhoo.
Saeed emphasized the numerous benefits that come with the establishment of the Development Bank, highlighting its crucial role in preventing project stagnation due to financial constraints. Additionally, he suggested allocating less than 5% of housing construction loans to streamline loan provisions at preferential rates through the bank.
Establishing the Maldives Development Bank is in line with the government’s objectives to mobilize resources for sustainable economic, social, and infrastructure development. Furthermore, the government aims to address funding challenges for Public Sector Investment Programme (PSIP) projects through syndicated financing while enhancing the attractiveness of foreign exchange deposits within the domestic banking framework.
