Minister of Economic Development and Trade, Mohamed Saeed, emphasized that the development bank will be a collaborative effort, with both government and private sector stakeholders holding significant stakes.
PSM News
In a landmark initiative aimed at transforming the financial landscape of the Maldives, the government is set to launch its first development bank this July. This move underscores the nation's commitment to fostering economic growth and innovation, particularly within the small and medium-sized enterprise (SME) sector.
The establishment of the development bank is a strategic response to the need for accessible financing options for both government and private sector projects. Unlike existing financial institutions like the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB), this development bank will focus on providing funding for large-scale projects that are crucial for national development. This includes offering technical assistance, equity investments, and other financial services that align with its developmental objectives.
Minister of Economic Development and Trade, Mohamed Saeed, emphasized that the development bank will be a collaborative effort, with both government and private sector stakeholders holding significant stakes. Additionally, the bank has attracted interest from foreign investors, highlighting its potential as a robust financial institution capable of driving economic progress. This collaboration aims to ensure that the bank can effectively support diverse projects, ranging from infrastructure development to innovative private enterprises.
The bank will be housed within the SME Hub building, managed by the Business Center Corporation (BCC), which currently supports various small businesses. This integration is expected to provide SMEs with better access to funding and financial services, thus boosting their growth and sustainability. The government has assured that rental rates for existing businesses will remain affordable, minimizing disruption and encouraging continued operation.
The new development bank is poised to play a pivotal role in the socio-economic advancement of the Maldives. By financing key projects, it will create job opportunities, stimulate innovation, and contribute to sustainable development. The bank's operations will align with broader national goals, working closely with international organizations to ensure that funded projects have a significant positive impact on the community.
Source: Development Bank and Finance Center to be opened in SME Hub building - The Edition
