SDFC Rebrands to SME Digital, Expanding Vision Beyond Financing

The SME Development and Financing Corporation (SDFC) officially rebranded as SME Digital on Wednesday. 

In a post announcing the change on social media, the company said this marks its transformation from a financing provider to a digital enabler aimed at building a connected and thriving SME ecosystem.

SME Digital will continue to offer financing solutions while expanding its services to include market access, financial management tools, and operational efficiency support. Customers can now make payments for SME Digital facilities directly through the BML mobile app, offering a simple, secure, and seamless experience.

The company also announced the upcoming SME Digital Mobile App, an all-in-one hub for SME financing and services. The app will feature a digital marketplace, business planning tools, payment solutions, and real-time access to financing facilities.

“This rebranding marks the beginning of our renewed commitment to transforming the entire ecosystem for small and medium-sized enterprises. SMEs need more than financing—they need digital infrastructure, expertise, and collaboration,”  CEO Badhurudheen Hassan said, in the post shared on social media.

Established in 2019, SDFC—now SME Digital—remains the Maldives’ only dedicated institution supporting micro, small, and medium enterprises. In 2025, the Bank of Maldives PLC acquired the government’s shareholding in the company.

Ooredoo Maldives Announces 10th Winner of #LiveUnlimited Anniversary Campaign

Ooredoo Maldives has announced Ibrahim Wajdhee, from Vaadhoo in Gaafu Dhaalu Atoll, as the 10th winner of its ongoing #LiveUnlimited Anniversary Campaign. Ibrahim will embark on a fully-sponsored Umrah pilgrimage, with the prize collected on his behalf by Mohamed Ibrahim.

Launched to celebrate Ooredoo Maldives’ anniversary, the #LiveUnlimited campaign rewards 19 customers with Umrah trips every 20 days, culminating in a grand prize of a Hajj trip for two for the 20th winner.

Khalid Al-Hamadi, CEO and Managing Director of Ooredoo Maldives, said: “With #LiveUnlimited, we set out not only to thank our customers for their loyalty but to offer them moments that resonate on a deeper, more personal level. We congratulate Ibrahim and look forward to celebrating many more journeys of faith and fulfilment.”

Customers can enter the draw by spending over MVR 250 on bill payments or add-ons within a 30-day period. New customers qualify with a minimum spend of MVR 400. Participants must also use Ooredoo services, including calls or data, on at least 25 of the past 30 days. The campaign is open to Postpaid, Prepaid, and SuperNet users.

President Muizzu Appoints Husnee Mubarik to Judicial Service Commission

President Dr Mohamed Muizzu has appointed Husnee Mubarik, Member of Parliament for Manadhoo Constituency, as a member of the Judicial Service Commission (JSC). The appointment ceremony was held on Wednesday at the President’s Office.

During the ceremony, President Muizzu presented the official letter of appointment to Husnee Mubarik, who signed it upon being sworn in. Prior to the appointment, Husnee Mubarik took the oath of office, which was administered by Supreme Court Justice Ali Rasheed Hussain.

Husnee Mubarik will serve on the Judicial Service Commission in his capacity as a member representing the Parliament, contributing to the oversight and administration of judicial services in the Maldives.

Bilateral Cooperation in Focus as Chinese Procurators Visit Maldives

A senior delegation from China’s Supreme People’s Procuratorate has arrived in the Maldives to enhance collaboration in the prosecutorial sector.

The delegation is led by Shi Weizhong, Permanent Member of China’s Procuratorial Committee of the Supreme People’s Procuratorate, and is visiting at the invitation of Prosecutor General Abbas Shareef.

According to the Prosecutor General’s Office, the visit represents an important step in strengthening bilateral cooperation, advancing institutional development, and facilitating the exchange of prosecutorial expertise between the Maldives and China.

During their stay, the delegation will meet with senior Maldivian officials, including Chief Justice Abdul Ghanee Mohamed, Prosecutor General Abbas Shareef, and the Minister of Homeland Security, to discuss areas of mutual interest and explore opportunities for collaboration.

The visit underscores the commitment of both countries to fostering stronger institutional ties and enhancing the capacity of their prosecutorial systems.

President Announces Infrastructure, Housing, and Development Projects in Lhaviyani and Kaafu Atoll Tour

President Dr Mohamed Muizzu has announced a series of key development pledges focusing on infrastructure, housing, land reclamation, and budget priorities during his tour of Lhaviyani and Kaafu Atolls. The President concluded the two-day visit on Tuesday, after travelling to Naifaru, Hinnavaru, Kurendhoo, and Olhuvelifushi in Lhaviyani Atoll, as well as Kaashidhoo, Dhiffushi, and Thulusdhoo in Kaafu Atoll.

The visits provided an opportunity for local councils and communities to share their development priorities, with the President giving assurances to accelerate critical projects across the islands.

In Lhaviyani Atoll, President Muizzu pledged that the development of 100 new housing units in Hinnavaru would be included in next year’s state budget. He also announced that work to establish essential utility systems in the island’s reclaimed area would proceed swiftly. The President confirmed the termination of the agreement for a stalled housing project due to lack of progress and assured that it would be reassigned to a new contractor to ensure timely completion.

Highlighting ongoing works, President Muizzu said additional equipment and machinery will be brought in within two months to strengthen the Road Development Corporation’s (RDC) capacity, enabling road development to progress on multiple islands simultaneously. He also revealed that harbour development will continue with the construction of a raised seawall, and that WAMCO will take over waste management operations in Hinnavaru within three months. Plans for a new swimming track and sports complex were also included in next year’s budget.

During his visit to Dhiffushi in Kaafu Atoll, the President confirmed that the land reclamation project—including bund wall construction, shore protection, and seawall works—will be completed within 12 months, adding 23 hectares of new land. The reclaimed area will be used for housing, tourism, and infrastructure expansion. Several projects commenced on the island, including a waste management facility, fitness and recreation centre, multi-purpose school hall, and a new STELCO powerhouse.

In Thulusdhoo, President Muizzu pledged to resolve long-standing housing challenges and announced that new housing projects would be carried out on reclaimed land. He described Thulusdhoo as a model for successful development and population consolidation. Among the new initiatives launched were the K. Atoll Hospital building, Police Station, Fitness and Recreation Centre, new water plant, and the State Utility Skills Academy developed by STELCO.

The President also confirmed that the upcoming 2026 national budget, to be submitted before 1 November, will prioritise healthcare and local government development.

STELCO Opens State Utility Skills Academy in Thulusdhoo

The State Electric Company Limited (STELCO) officially opened the State Utility Skills Academy on Thulusdhoo Island in Kaafu Atoll on Tuesday, to boost engineering skills in the Maldives. 

The inauguration was led by President Dr Mohamed Muizzu, alongside STELCO Managing Director Ahmed Shamah Rasheed and senior company officials.

The academy, developed entirely by STELCO employees for MVR 5 million, aims to increase community interest in engineering and improve the quality of engineering services nationwide. The facility includes classrooms, workshops, a laboratory, and living accommodations, and can accommodate up to 50 students.

According to the company, a renewable energy laboratory has been established at the centre, supported by equipment and USD 200,000 donated by China’s Yangtze and Dongfang Wisdom Electric Co., Ltd. In addition, STELCO signed a memorandum of understanding with Maldives National University (MNU) on Sunday, paving the way for collaborative training programmes.

During its initial phase, the academy will offer training in six key areas: mechanical engineering, automotive engineering, water and sewerage systems, automation engineering, and administrative tasks. STELCO plans to expand the academy’s offerings over time, enhancing both the breadth and quality of teaching and training resources to keep pace with developments in the utility sector.

The State Utility Skills Academy represents a major investment in local talent and a strategic initiative to strengthen the Maldives’ engineering workforce for the future.

MFOMPC Launches Nationwide Registration for Fisheries and Marine Producers

The Maldives Fisheries and Ocean Resources Marketing and Promotion Corporation (MFOMPC) has launched a nationwide registration initiative for all fisheries and marine resources producers across the country.

The programme seeks to build a comprehensive national database to strengthen the visibility and market presence of Maldivian marine products both locally and internationally. As a state-owned enterprise, MFOMPC is tasked with promoting fisheries products to enhance profitability and global competitiveness within the sector.

Through this initiative, the corporation will compile a detailed register of key industry stakeholders, including fishermen, processors, exporters, aquaculture and mariculture operators, traders, cooperative societies, and relevant associations. The database will serve as a foundation for targeted marketing and promotional efforts.

Registered participants will join the National Fisheries Promotion Network and gain access to international branding and marketing support. They will also be able to contribute to shaping a long-term vision for the fisheries sector and receive updates on upcoming opportunities and initiatives.

MFOMPC has also announced plans to introduce a distinct national brand under which Maldivian fisheries products will be promoted globally.

IndiGo Launches Daily Thiruvananthapuram–Malé Service, Boosts Regional Connectivity

IndiGo has launched a new daily nonstop service between Thiruvananthapuram and Malé, expanding its regional network to meet growing travel demand between India and the Maldives.

Thiruvananthapuram is now the fourth Indian city with direct connectivity to Malé via IndiGo, joining Bengaluru, Kochi, and Mumbai. The new route increases the airline’s total weekly flights between Indian cities and Malé to 28.

The launch coincides with the Maldives’ peak tourist season, when international arrivals traditionally rise.

The route operates using ATR 72-600 aircraft, with departures from Thiruvananthapuram around midday and arrivals in Malé approximately one hour and 15 minutes later. Return flights depart Malé at 2:05 p.m.

Maldivian, the national carrier of the Maldives, also currently operates direct flights on the same route, providing travellers with multiple options between the two destinations.

Azerbaijan Airlines Begins Operations at Velana International Airport’s Terminal 1

Velana International Airport’s new Terminal 1 officially began serving Azerbaijan Airlines on Monday.

The launch was marked by a special ceremony attended by STO CEO and Managing Director Shimad Ibrahim, British Deputy High Commissioner Mohammed Toafiq Wahab, Ahmed Arshad of Avia Maldives, and officials from Maldives Airports Company Limited (MACL).

During the event, the airline’s check-in counter was inaugurated, and 156 passengers arriving on the first flight, J2301, were welcomed with traditional Maldivian cultural performances. MACL noted that 55 passengers received commemorative gifts.

Azerbaijan Airlines has been operating in the Maldives since 6 November 2024. Terminal 1 now caters to 16 international airlines, further enhancing the airport’s capacity and passenger experience as the Maldives strengthens its position as a major international travel hub.

President Announces 2026 Budget Will Strengthen Social Protection and Island Development

President Dr Mohamed Muizzu announced on Monday that the 2026 budget will prioritise the establishment of a more compassionate social protection system, delivered through local councils. He made the announcement while addressing residents of Olhuvelifushi during his ongoing visit to the inhabited islands of Faadhippolhu, adding that the budget will be submitted before the end of the week.

The President said the budget will reflect the island’s development goals, incorporating projects signed during the visit, as well as planned initiatives and existing pledges. He explained that following the planned dissolution of Atoll Councils through a legislative amendment, surplus funds will be redirected to Island Councils to provide essential social support directly to residents. 

Addressing projects specific to Olhuvelifushi, President Muizzu highlighted the stability of the island’s power grid as a critical priority. He emphasised that the successful implementation of many planned development projects depends on stabilising the grid and reaffirmed the Administration’s commitment to supporting Fenaka in resolving the issue. According to the President’s Office, it will closely monitor progress, aiming for a complete resolution prior to the next Ramadan.

On 14 August, President Muizzu ratified the latest amendment to the Decentralisation Act, despite opposition from local councils nationwide. The amendment redefined the financial and administrative powers of local councils, limiting the Local Authority Companies to only be able to conduct essential rural infrastructure projects only if they exceed MVR 10 million, and restricting business activities that compete with private enterprises. Councils are now prohibited from charging rent for land or buildings used for public services and must follow stricter financial procedures, including maintaining accounts under Ministry of Finance guidelines.

The amendment also restricts councils approaching the end of their term from recruiting staff, leasing land, lagoons, or reefs, or initiating new development projects outside approved plans without Ministry approval.

New Pay Structure Addresses Long-Standing Inequities in Local Government, Says President

President Dr Mohamed Muizzu announced on Monday that the harmonised pay structure, set to take effect on 1 November, will place local government employees on an equal footing with civil service staff, addressing long-standing inequities in recognition and responsibility.

He made the statement while addressing the community of Kurendhoo in Lhaviyani Atoll, as part of his ongoing tour of inhabited islands in Faadhippolhu Atoll.

The President highlighted the Administration’s commitment to strengthening decentralised governance, noting earlier discussions on elevating local government employees from Rank 4 to Rank 3. With the implementation of the harmonised pay structure, their rank will now be raised to Rank 1, aligning fully with the civil service structure.

On 8 September, President Muizzu announced that employees in the Civil Service, Judicial Service, and Local Government sectors, who had not received salary increases due to previous pay harmonisation issues, will start receiving the revised salaries from 1 November.

President Appoints Shuaib Abdul Rahman as President of the National Integrity Commission

President Dr Mohamed Muizzu has appointed Shuaib Abdul Rahman as the new President of the National Integrity Commission (NIC) on Monday, in accordance with the National Integrity Commission Act.

Shuaib, who currently serves as a member of the Commission, was appointed to the post following the conclusion of the previous President’s term. This marks his second term as a member of the NIC.

On Sunday, President Muizzu appointed four members to the Commission following the expiry of the terms of four members. The newly appointed members are Shuaib Abdul Rahman, Shifaz Ali, Ali Mohamed Manik, and Fathimath Shareef.

The National Integrity Commission is responsible for overseeing the conduct and administration of law enforcement agencies in the Maldives, ensuring accountability and adherence to the laws and regulations outlined under the National Integrity Commission Act.

HDC to Replant Trees Removed from Hulhumalé Pavements in Parks

The Housing Development Corporation (HDC) announced on Sunday that large trees being removed from pavements in Hulhumalé will be replanted in the island’s parks as part of an ongoing clean-up initiative.

The effort, titled “Hihfaseyha Hulhumalé”, aims to improve the island’s environment and address long-standing drainage issues in urban areas. According to HDC, the decision to uproot the trees was made due to repeated flooding caused by water accumulating on roads and pavements, which the trees’ roots were obstructing.

HDC said that instead of cutting the trees down, they are being carefully removed and relocated to designated parks across the island. The corporation added that residents will also be invited to take part in a tree-planting programme to fill the empty spaces left behind in pavement hedges.

As part of the initiative, the company said it will also remove chairs and tables that have been placed on pavements, citing public complaints about obstructions to pedestrian movement. The clean-up programme will further include general maintenance work aimed at improving the island’s overall cleanliness and accessibility.

HDC noted that it has received numerous reports from residents about tree roots surfacing on pavements and damaging road surfaces, as well as difficulties caused by furniture obstructing walkways.

MPL Launches New Fire Extinguisher Refill Facility to Enhance Workplace Safety

Maldives Ports Limited (MPL) has commenced operations at its newly established Fire Extinguisher Refill Facility, marking a significant step towards strengthening workplace safety within the company.

The new facility, managed under MPL’s Health and Safety Department, was officially inaugurated on Sunday afternoon at a special ceremony attended by MPL Chief Executive Officer, DCP (Retired) Mohamed Rishwan, and members of the company’s senior management team.

According to MPL, the facility offers a comprehensive range of services, including fire extinguisher refilling, hydrostatic pressure testing, leakage inspections, labelling, and the safe disposal of extinguishers. All services will be conducted in accordance with international safety standards.

In addition, the facility is equipped to handle the refilling and testing of Self-Contained Breathing Apparatus (SCBA) cylinders, supporting the company’s goal of maintaining a safe and resilient working environment.

MPL stated that the establishment of this facility reflects its ongoing commitment to safety excellence and adherence to global operational standards and guidelines.

STELCO Connects Three More Towers to Electricity in Aman Udhares Housing Project

The State Electric Company (STELCO) has announced that three additional towers in the Aman Udhares housing project in Hulhumalé Phase 2 have been connected to electricity, marking further progress in the handover of the 4,000 flats under development.

The company confirmed on Sunday that Towers 11, 12, and 13 have now received electricity, with water connections expected to be completed within the coming week. Once the water supply is established, the keys to the flats will be handed over to recipients.

The first flats in Tower 14 were handed over on 28 September, and residents have already started to move in. The project, built by two Indian construction companies, opened for security deposit submissions earlier last month. 

The complex offers two-bedroom and three-bedroom units, with rents set at MVR 8,000 and MVR 11,500 per month respectively, inclusive of maintenance fees.

The Aman Udhares project consists of 32 towers, each 17–18 storeys high. The government expects all towers to be handed over by December.

MIRA Revises Instalment and Enforcement Policies, Expands Exemption to All Businesses

The Maldives Inland Revenue Authority (MIRA) has amended its Instalment Policy and Enforcement Policy, easing certain measures for non-compliant taxpayers and those seeking repeated instalments to pay taxes, which were previously applicable to small and medium enterprises.

 The changes were announced on Wednesday.

This marks the second amendment to the General Enforcement Policy. Article 6(b), which previously allowed MIRA to halt further enforcement actions while pressing charges against non-payers until their case was resolved in court, has been removed.

The Instalment Policy also received two amendments, representing its third revision. Article 7(d) now authorises the Commissioner General to make or withdraw commitment payments under an installment agreement, removing the previous restriction that applied the exemption only to small and medium enterprises.

Article 9-2, which governs repeated installments, has been revised to reduce additional payments for taxpayers who fail to comply with an instalment agreement. Previously, taxpayers were required to pay 50 percent of the commitment payment as an additional fee. Under the new amendment, the additional charge is limited to 5 percent of the commitment payment, with the amount increasing only if the agreement is renewed.

MIRA said the amendments are intended to make tax compliance more manageable while maintaining the authority’s enforcement framework.

Veligandu Maldives Resort Island Hosts Students Through “Discover Tourism” Programme

Veligandu Maldives Resort Island has conducted five educational and exposure trips for students under its “Discover Tourism” programme this year, part of the resort’s Corporate Social Responsibility (CSR) initiatives.

The programme aims to inspire young Maldivians to explore opportunities in tourism and the hospitality industry. In 2025, Veligandu Maldives welcomed students from Alifu Alifu Atoll Education Centre (Rasdhoo) and Thoddoo School to experience firsthand the operations of a luxury resort.

According to the resort, each session of “Discover Tourism” was designed to bridge classroom learning with real-world hospitality experience. Students attended motivational talks and interactive demonstrations, engaging directly with the resort’s management team and departmental heads.

Participants were introduced to key operational areas, including Front Office, Food & Beverage, and Housekeeping, while learning about teamwork, service excellence, and guest experience. The Chief Engineer presented an overview of the resort’s sustainability initiatives, including its solar panel project. Marine Biologist Sara Sibile conducted sessions on marine conservation under the theme “The Ocean: Depths of Wonder.”

The programme also offered hands-on experiences, such as pastry-making workshops with the resort’s Pastry Chef and role-play activities simulating real-life hospitality scenarios. Each visit concluded with an island tour and refreshments, giving students a full immersion into resort life.

Throughout the year, the initiative has welcomed dozens of students, teachers, and parents. The next session is scheduled later this year, targeting students from Ukulhas School and expanding the resort’s outreach within the atoll.

 “At its heart, hospitality is not just about resorts, hotels, or restaurants. It is about people, about meaningful moments and creating experiences that guests will remember for a lifetime. They may forget what they ate or how their room looked, but they will never forget how you made them feel. A happy team creates happy guests, and this philosophy inspires everything we do,” Fathuhulla Ibrahim, General Manager of Veligandu Maldives, said regarding the program.

President Appoints Four Members to National Integrity Commission

President Dr Mohamed Muizzu appointed four members to the National Integrity Commission (NIC) on Sunday in accordance with the National Integrity Commission Act.

The appointments follow the expiry of the terms of four members. The newly appointed members are Shuaib Abdul Rahman, Shifaz Ali, Ali Mohamed Manik, and Fathimath Shareef. Among them, Shuaib currently serves as a member of the NIC.

The President made the appointments after parliamentary review and approval on October 13.

The National Integrity Commission is tasked with overseeing the administration of law enforcement agencies and their personnel. It also ensures the effective implementation of laws and regulations under the National Integrity Commission Act. The Commission comprises five members in total.

President Muizzu Begins Two-Day Visit to Islands in Lhaviyani and Kaafu Atolls

President Dr Mohamed Muizzu has begun a two-day visit to the inhabited islands of Faadhippolhu (Lhaviyani Atoll) and Maaleatholhu (Kaafu Atoll), where he is scheduled to meet local councils, Women’s Development Committees (WDCs), and residents.

The visit includes stops at four islands in Lhaviyani Atoll — Naifaru, Hinnavaru, Kurendhoo, and Olhuvelifushi — and three islands in Kaafu Atoll — Kaashidhoo, Dhiffushi, and Thulusdhoo.

According to the President’s Office, the visit is part of the administration’s broader effort to maintain regular engagement with atoll, island, and city councils. The President aims to hear directly from communities about their priorities and challenges to identify areas where government support is needed.

Cabinet Ministers and senior officials from various government institutions are accompanying the President on the visit.

Ooredoo Building Lights Up for #OoredooFunRun Celebration

Ooredoo Maldives has turned its iconic headquarters in Hulhumalé into a colourful beacon of celebration ahead of the much-anticipated #OoredooFunRun. The building will be illuminated every evening, lighting up the skyline and spreading excitement for one of the country’s most vibrant community events.

In the spirit of fun and creativity, the telecom company has launched a social media contest inviting the public to capture and share videos of the illuminated building for a chance to win prizes. Participants can upload their videos on Instagram, Facebook, or TikTok, tagging @ooredoomaldives and using the hashtag #OoredooFunRun. Entries will be accepted until 31 October 2025.

The initiative reflects Ooredoo Maldives’ continued focus on bringing communities together through engaging and inclusive experiences. The company described the campaign as a way to celebrate connection, creativity and collective joy, values that have long defined the #OoredooFunRun.

The annual Fun Run, often dubbed the “colour run of the Maldives,” has grown into one of the country’s most popular community events, drawing thousands of participants from across the islands.

Maldives Poised for Record Arrivals as Year-End Travel Picks Up

Tourist arrivals to the Maldives have continued to grow steadily in the lead-up to the high season, with the country welcoming 1.79 million visitors as of 25 October 2025. According to the Ministry of Tourism and Environment’s latest statistics, this represents a 10.1 percent increase compared to the same period last year, underscoring a strong year for the country’s tourism industry.

October arrivals have already reached 153,800, a 14.4 percent rise from the same period in 2024. With the peak season typically beginning in November and continuing through March, the upward momentum suggests that 2025 could close with record-breaking numbers.

Resorts continue to dominate the accommodation landscape, accounting for nearly 74 percent of all arrivals, followed by guesthouses at 21.5 percent. The sector now boasts an operational capacity of almost 67,000 beds across 1,296 facilities, including 183 resorts, 933 guesthouses, 16 hotels, and 164 safari vessels.

China remains the Maldives’ top tourism source market, contributing over 290,000 visitors, or 16.2 percent of total arrivals. Russia ranks second with 221,000 tourists, followed by the United Kingdom, Germany, and Italy. These traditional European and Asian markets continue to provide a stable foundation for the industry, although there is growing interest from newer markets in Eastern Europe and the Middle East.

The consistent growth in arrivals reflects both sustained demand and improved air connectivity, with additional flights and new routes launched in recent months. As the high season approaches, tourism operators anticipate a surge in occupancy rates across resorts and guesthouses, particularly with Christmas and New Year holidays drawing near.

If current trends persist, the Maldives could surpass the 2 million tourist arrival mark by year-end, further solidifying its status as one of the world’s leading island destinations.

Virgin Atlantic Begins Operations from Velana International Airport’s New Terminal 1

Velana International Airport’s new Terminal 1 officially began servicing Virgin Atlantic yesterday, marking the addition of another British airline at the international airport.

The service was inaugurated at a ceremony attended by Ibrahim Thoha, Managing Director of the Maldives National Air Traffic Service (MNATS), Virgin Atlantic’s Airport Manager Asim Shaih, and officials from the Maldives Airports Company Limited (MACL).

The 258 passengers arriving on Virgin Atlantic’s first flight from Terminal 1 were welcomed with traditional cultural ceremonies.

Virgin Atlantic becomes the second UK airline to operate from Terminal 1, following British Airways, which commenced operations on 23 October 2025.

With Virgin Atlantic’s launch, the total number of airlines operating at Terminal 1 has increased to 14. MACL said its focus remains on providing high-quality services to all airlines flying to the Maldives.

Maldives’ Sovereign Development Fund Hits USD 103.4 Million

The Sovereign Development Fund (SDF) has recorded a notable rise in its reserves this year, with total deposits reaching USD 103.4 million, according to the Ministry of Finance and Planning’s latest Weekly Fiscal Development Report.

The figure marks a 45 percent increase compared to the USD 71.3 million accumulated during the same period last year, reflecting renewed momentum in national reserve-building efforts.

Alongside the strong performance of the SDF, the government has also intensified its debt repayment activities. Total loan repayments now stand at USD 285.3 million so far this year, up 120 percent from the USD 129.7 million spent over the same period in 2024.

The government’s focus on strengthening the SDF while accelerating debt servicing highlights a broader strategy aimed at fiscal stability and long-term economic resilience.

Established in 2016, the SDF plays a key role in supporting the Maldives’ financial sustainability. The fund is designed to meet external debt obligations, finance critical development projects, and provide a buffer against unexpected economic shocks. It operates separately from the Maldives Monetary Authority’s official reserves.

Revenue for the fund primarily comes from airport development fees charged to departing passengers, dividends from Maldives Airports Company Limited (MACL), and enhanced fees for select airport services.

Tourism Surge and Construction Lift Maldives’ Economic Growth in Q2 2025

The Maldives Monetary Authority’s (MMA) Quarterly Economic Bulletin for the second quarter of 2025 highlights a steady acceleration in real economic activity, underpinned by strong tourism performance and growth in construction, real estate, and fisheries.

According to the report, total tourist arrivals reached 475,708 during the quarter, representing an annual growth of 16% compared with the same period last year. By the end of June, the country had already welcomed one million visitors, marking the fastest pace ever recorded. The expansion of international flight movements, which grew by 6%, helped sustain this momentum despite the onset of the off-peak season.

Europe remained the leading regional source market, accounting for 55% of arrivals, up from 52% in Q2 2024. Asia and the Pacific contributed 34%, maintaining its share from the previous year. China consolidated its position as the top individual market, representing 14% of total arrivals, followed by Russia at 13%, the United Kingdom at 9%, Germany at 8%, India at 7%, and Italy at 6%. Arrivals from India reversed earlier declines, showing a significant recovery after consecutive downturns since 2023.

Tourist bednights increased by 5% year-on-year, supported by higher occupancy in guesthouses and resorts. Guesthouse bednights rose sharply by 28%, while resort bednights increased by 2%. The average stay length stood at 6.8 days, slightly lower than the 7.4 days recorded in Q2 2024, reflecting a modest shift in visitor patterns during the off-peak period.

The tourism sector’s strong performance continued to stimulate related industries. Construction and real estate both recorded notable expansion during the quarter. The MMA reported an 11% increase in imports of construction-related materials and a 2% annual growth in commercial bank credit to the sector. The increase in lending was largely linked to resort renovation projects, property development, and commercial building construction. Real estate activity also remained positive, with its gross value added rising by 3.7% in the first quarter, and high-frequency indicators suggesting continued strength in Q2.

Fisheries, which had experienced a decline earlier in the year, saw a sharp rebound. Fish purchases by processing companies totalled 20,832 metric tonnes in Q2, up by 101% from the same period last year. This was primarily driven by a 133% surge in skipjack tuna purchases. Although the average purchase price of skipjack tuna declined to MVR 14 per kilogram due to the move toward market-based pricing, yellowfin tuna prices rose to MVR 64.6 per kilogram, reflecting stronger export demand.

The wholesale and retail trade sector showed mixed outcomes. Imports recorded a marginal annual decline of 1%, while credit to the sector grew by 17%. The mixed performance suggests that while domestic demand remained steady, tighter financial conditions and reduced import volumes tempered overall growth in trade activity.

Overall, the MMA report indicates that the Maldives’ real economy benefited from tourism-led expansion and complementary growth in key productive sectors during the second quarter of 2025. The consistent rise in visitor numbers, coupled with renewed construction activity and recovery in fisheries, contributed to a solid foundation for the country’s medium-term growth outlook. However, the report also notes that continued diversification efforts will be essential to sustain economic resilience beyond the tourism cycle.

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