A new social financing initiative focused on expanding Islamic Finance and addressing community needs was officially launched in the Maldives on Wednesday. The Maldives Islamic Social Financing Initiative (MIFSI) brings together key players in the financial sector, including the Maldives Monetary Authority (MMA), BML Islamic, and Maldives Islamic Bank (MIB), to deliver a total of MVR 250 million in financing over the next three years.
The programme is aimed at supporting women and individuals requiring community assistance, with MVR 200 million in financing to be disbursed by BML Islamic. Maldives Islamic Bank will contribute MVR 30 million, while the central bank will provide MVR 20 million.
Speaking at the launch ceremony held at Kurumba Maldives, President Dr Mohamed Muizzu described MIFSI as a key component of the government’s National Development Plan. He highlighted that the initiative is closely aligned with the forthcoming National Financial Inclusion Strategy, and stressed the administration’s commitment to transforming the Maldives into a prominent financial centre for Islamic Finance, driven by digital innovation.
The President underscored that the Maldives’ national identity is rooted in the values of compassion, justice, and social equity. He noted that these principles form the core of Islamic social finance, and that MIFSI is not merely a policy initiative but a call for collective action from financial institutions and civil society.
He further announced the development of a National Master Plan and Roadmap for Islamic Economics and Finance, currently being drafted with support from the Islamic Development Bank. According to the President, the plan will define a national ecosystem that supports Islamic finance alongside digital financial innovation, supported by upcoming legal reforms aimed at modernising the financial framework.
Governor of the MMA, Ahmed Munavvar, echoed these ambitions and outlined the central bank’s goal of positioning the Maldives as a regional hub for Islamic Finance within the next decade. He stated that the development of Islamic finance is part of the MMA’s 2025 to 2027 Strategic Plan. The MIFSI model, he said, draws inspiration from Malaysia’s Sadaqa House Bank Islam initiative and was designed following research conducted in partnership with Selangor Islamic University.
During the event, the President also launched MMA’s Islamic Social Finance research report and received a commitment letter from BML and MIB to support the initiative. Officials present emphasised the importance of fostering meaningful partnerships between the financial sector and civil society to address the economic and social challenges faced by vulnerable groups across the country.
