The project will construct a modern, fully equipped 50-bed hospital to deliver secondary healthcare to residents on the island and in nearby communities.
Finance Ministry
An agreement has been signed between the Government of the Maldives and the Kuwait Fund for Arab Economic Development to develop the Th. Atoll Hospital located in Th. Veymandoo today.
Under the agreement, a loan totaling 3 Million Kuwaiti Dinars, equivalent to approximately USD 9.7 million was secured from the Kuwait Fund for Arab Economic Development (KFAED) to execute the Th. Veymandoo New Hospital Construction Project. The project will construct a modern, fully equipped 50-bed hospital to deliver secondary healthcare to residents on the island and in nearby communities. The loan agreement was allocated within the USD 10 million annual country limit set by the fund for the Maldives.
Minister of Finance and Public Enterprises, Hassan Zareer signed the agreement on behalf of the Government of Maldives, while Acting Director General, Mr. Rashaid A. Al-Bader signed on behalf of the Kuwait Fund for Arab Economic Development. The signing ceremony was also attended by the Minister of Health, Family and Welfare, alongside senior officials of the Kuwait Fund.
Speaking at the ceremony, Minister Zareer highlighted the Kuwait Fund’s historic contributions to the Maldives’ socio-economic development, including major projects such as the Velana International Airport development projects, the expansion of its new terminal and the Fuvahmulah Coastal Protection Project. Minister expressed deep gratitude for Kuwait’s continued support. He emphasized that the agreement goes beyond constructing a physical facility, calling it a shared investment in the health, well-being, and future prosperity of Maldivians. Noting that the Maldives is a geographically dispersed nation, Minister added that accessible and equitable healthcare remains a key national priority, ensuring every citizen receives quality care regardless of location.
Speaking at the ceremony, KFAED Acting Director General Mr. Rashaid A. Al-Bader highlighted that this agreement represents the Kuwait Fund's 15th loan to the Maldives overall and marks its first-ever investment in the country's health sector. He noted that the occasion coincides with 50 years of partnership since their first joint agreement in 1976 during which the Fund has provided 14 concessional loans totaling around US$ 185 million, alongside US$ 5.7 million in grants and technical assistance. Al-Bader affirmed that the Fund remains committed to supporting the Maldives' national priorities and expressed hope that the new facility will serve as a trusted place of care for the region.
The main objective of this project is to establish arrangements ensuring that the residents of Th. Atoll can easily access high-quality healthcare services. As a result of this project, a solution will be provided to the current space constraints at the hospital, and the services provided by the hospital will be further expanded. It will also facilitate the organization of space to be utilized in the most optimal way for providing healthcare services, placing medical equipment, and offering other additional services.
During the courtesy call following the signing ceremony, Acting Director General Mr. Rashaid A. Al-Bader announced that, as requested by Minister Zareer during the Asian Infrastructure Investment Bank (AIIB) Annual Meeting sideline, KFAED has decided to increase the annual country loan limit for the Maldives from USD 10 million to USD 40 million approximately, starting from 2027 onwards. Furthermore, upon the invitation by Minister Zareer, the Kuwait Fund expressed strong interest in participating in the Thilafushi port development project and assured its readiness to initiate discussions regarding financing for the project.
