According to the company, an important part of this change will be the conversion of its existing conventional facilities to Shariah-compliant financing to address and alleviate repayment challenges faced by customers.
Corporate Maldives
On 07 October 2025, SME Development Finance Corporation (SDFC) announced an initiative to transform its lending portfolio to a full Shariah-compliant portfolio. This will be implemented through the adoption of various Islamic banking contracts, starting with the Diminishing Musharakah contract. The Corporation also plans to introduce additional Shariah-compliant financing contracts in the near future, including Wakalah Bil Istithmar and Tawarruq.
As SDFC embarks on a new chapter as a fully Shariah-compliant digital subsidiary of Bank of Maldives, this transformation marks a significant milestone in strengthening financial inclusion and expanding innovative solutions for the SME sector in the Maldives.
According to the company, an important part of this change will be the conversion of its existing conventional facilities to Shariah-compliant financing to address and alleviate repayment challenges faced by customers. Among the solutions provided will be extended repayment terms, which are specifically designed to help customers manage their financial obligations more effectively and meet their repayment commitments.
The conversion will be carried out in phases over the next few months, beginning with the roll out of first phase today, and is expected to be fully completed by 1st quarter of 2026. Customers will be informed in batches via our customer portal and contacted directly to ensure a smooth and supportive transition.
This transition marks a defining moment for SDFC as we move forward towards a fully Shariah-compliant digital subsidiary of Bank of Maldives. With this new initiative, we are providing our customers an opportunity to regularize their repayments through a shariah-compliant path. Our focus is on reshaping SME financing through innovative, technology-driven solutions that are ethical, inclusive, and accessible.
With this repositioning, SDFC is set to play a central role in driving the digital transformation of SME banking in the Maldives, further strengthening the shared vision with Bank of Maldives to support inclusive and sustainable economic development. Priority will be placed on empowering underserved segments such as start-ups, women-led businesses, fishermen, farmers, agribusinesses, and digital and trade enterprises.
