The Government of Maldives has secured an additional USD 17 million (MVR 262 million) in financing from the Saudi Fund for Development (SFD) to support the ongoing expansion of Velana International Airport (VIA), including the construction of a new international passenger terminal and upgraded cargo facilities.
The loan agreement was signed on Monday morning at a ceremony held at the President’s Office, with Finance Minister Moosa Zameer representing the Maldives and SFD Chief Executive Sultan bin Abdulrahman Al-Marshad signing on behalf of the Fund.
Speaking at the signing ceremony, Minister Zameer reiterated the importance of the VIA expansion project to the Maldives’ economic development. He acknowledged delays in the project’s progress but stated that the current administration is focused on ensuring its timely completion. Zameer also thanked the SFD for its continued partnership and highlighted the Fund’s additional contributions to sectors such as health, housing, and disaster management.
This is the third loan provided by the Saudi Fund specifically for the VIA project. Previous financing packages included USD 100 million in 2016 and another USD 100 million extended in May last year. With the latest agreement, the SFD’s total contribution to the VIA project now stands at USD 217 million (MVR 3.3 billion). Since 1978, when the Fund first supported what was then known as Malé International Airport, it has financed the VIA on seven occasions, with total airport-related assistance reaching approximately USD 242 million.
According to Sultan Al-Marshad, the latest loan will help expand VIA’s capacity to accommodate up to 7.5 million passengers annually and enhance its cargo handling capabilities. He also noted that the development would support job creation and facilitate long-term economic growth.
During his visit to the Maldives, Al-Marshad paid a courtesy call on President Dr Mohamed Muizzu, who expressed his appreciation for the longstanding support of the SFD. President Muizzu also conferred the Order of the Dignified Rule of Muleege Dynasty on Al-Marshad in recognition of his leadership and the Fund’s sustained contributions to the country’s development.
The VIA project, which includes a new international terminal, is considered one of the largest infrastructure undertakings in the Maldives. The airport has played a central role in the country’s growth since it began operating commercial flights and welcoming international tourists in the 1970s. The new terminal, once completed, is expected to significantly boost the Maldives’ capacity to handle tourist arrivals and improve logistics and trade operations.
