The Saudi Fund for Development has long been a crucial partner in the Maldives’ development journey, financing a number of transformative projects.
The President's Office
During a three-day official visit to the Maldives, the Chief Executive Officer of the Saudi Fund for Development (SFD), His Excellency Sultan bin Abdulrahman Al-Murshid (O.D.R.M.D), met with Maldivian government officials to strengthen bilateral ties between the two nations. As part of the visit, the SFD signed an additional loan agreement to support and accelerate the expansion of Velana International Airport (VIA).
The Saudi Fund for Development has long been a crucial partner in the Maldives’ development journey, financing a number of transformative projects. Among the most prominent is the ongoing expansion of the Velana International Airport —a project that is widely regarded as one of the largest and most strategically important infrastructure initiatives in the country. Initially awarded to the Saudi Bin Laden Group in May 2016, the project experienced significant delays over the years due to various challenges. The total cost of the project was initially estimated at USD 350 million. However, as the scope of the work evolved and difficulties arose, SFD stepped in with considerable financial support, including earlier loans amounting to USD 200 million. In 2023, an additional USD 150 million was pledged by Saudi Arabia—USD 100 million allocated specifically to accelerate the VIA expansion and another USD 50 million to support the Maldives’ healthcare sector.
To further bolster this initiative, an official signing ceremony was held on April 14, 2025, following the conferral of the national honour. The Maldives Government and the SFD signed a second additional loan agreement, under which SAR 63.75 million (approximately USD 17 million) was pledged as further financing for the airport expansion. The agreement was signed by the Minister of Finance and Planning, Moosa Zameer, on behalf of the Maldives Government and CEO Sultan Al-Murshid on behalf of SFD. The VIA expansion project is expected to significantly enhance the Maldives’ global connectivity by increasing the airport’s capacity to serve 7.5 million passengers annually.
As of early 2025, considerable progress has been made, with external works nearly complete and more than 50 percent of the terminal’s interior work finalised. The airport expansion is expected to reach completion in the near future, and the visible transformation of the terminal has already generated excitement among both locals and visitors.
Continued support by SFD over the years
Beyond aviation, the Saudi Fund’s support has significantly impacted other critical sectors of the Maldivian economy. In the healthcare sector, SFD has extended a USD 50 million loan to the Maldives under the Health Sector Development Project. Signed in May 2024, this project aims to establish three new regional hospitals with a combined capacity of 150 beds. It is part of the government's broader objective to decentralise and upgrade healthcare services across the nation, ensuring high-quality and accessible care for island communities.
The SFD’s involvement also extends to the housing and fisheries sectors—areas that are central to the daily lives and livelihoods of Maldivians. In July 2020, SFD and the Government of the Maldives signed two agreements worth a total of USD 50 million: USD 25 million allocated for affordable housing initiatives and another USD 25 million to boost fisheries sector development. These funds came at a time of urgent need during the COVID-19 pandemic, providing critical support to overcome financial challenges and resume key projects that had stalled due to funding shortages.
In addition, the SFD inaugurated the Hulhumalé Island Development Project in May 2024, further demonstrating its commitment to long-term development in the Maldives. This USD 80 million project includes vital infrastructure works such as bridges, ports, and coastal protection. With an aim to enhance economic opportunities and improve living conditions for approximately 160,000 residents, the project aligns with the government’s vision for sustainable urban growth and climate resilience.
Throughout the ceremony and official engagements, both President Muizzu and CEO Al-Murshid reaffirmed their mutual desire to continue strengthening the historic and fraternal ties between the Maldives and Saudi Arabia. They also expressed confidence in the timely completion of the current projects and a shared commitment to ensuring that all initiatives supported by SFD deliver meaningful and lasting benefits to the Maldivian people.
