Applications have opened for the third phase of the Murabahah RSW Financing Scheme, a Shariah-compliant programme designed to equip Maldivian fishing vessels with modern Refrigerated Seawater (RSW) systems and complementary onboard technology. The initiative, jointly implemented by the Ministry of Fisheries and Ocean Resources, the Lives and Livelihoods Fund (LLF), the Islamic Development Bank (IsDB), and SME Digital, targets 200 vessels in this phase and is positioned as a key driver of efficiency, product quality, and long-term sustainability in the fisheries value chain.
Through this phase of the scheme, vessel owners can access financing for RSW systems, solar panels, and generator sets, helping them reduce reliance on ice and adopt more energy-efficient operations. RSW technology allows freshly caught fish to be chilled rapidly and stored in temperature-controlled seawater tanks, minimising spoilage and preserving quality over longer fishing trips. For Maldivian vessel owners facing persistent challenges in securing adequate ice supplies and managing fuel-intensive operations, this combination of technology and financing offers a structured pathway to upgrade their assets while maintaining financial predictability.
The financing structure blends instalment sale financing from IsDB with grant support from LLF, making the package more affordable for small and medium-scale vessel owners. The total fund allocation for this phase stands at USD 9.69 million, of which USD 3.392 million is provided as a grant component. Successful applicants receive a 35 per cent grant on the cost of the RSW system upon completion of installation, significantly lowering the effective capital outlay required to adopt the technology. This grant element is expected to be a strong incentive for vessel owners who may otherwise delay investment due to cost concerns.
Under the scheme, individual vessel owners can access up to MVR 2 million in financing, with a grace period of up to six months and a repayment tenure of up to ten years. Profit is charged at an annual rate of 6 per cent, structured to align with Shariah-compliant financing principles. Importantly, applicants are not required to provide collateral or equity, which removes a major barrier for many operators in the fisheries sector who may have limited access to traditional banking facilities but possess strong operational experience and established fishing track records.
Applications can now be submitted via the SME Portal on smedigital.mv, providing a fully digital entry point for interested vessel owners across the atolls. By using an online application system, SME Digital and its partners aim to streamline the approval process and broaden access to financing beyond the traditional centralised channels in Malé, ensuring fishers in outer islands can participate on an equal footing.
Commenting on the launch of the third phase, SME Digital CEO Badhurudheen Hassan highlighted that vessel owners across the country have already begun adopting RSW systems under earlier phases of the scheme. He noted that RSW technology has proved to be a practical response to long-standing challenges surrounding ice procurement, storage, and logistics, as well as rising operating costs. By enabling vessels to maintain higher-quality catch over longer periods, the systems can strengthen bargaining power at landing sites, support premium pricing opportunities, and reduce wastage, all of which contribute to improved income stability for fishing families.
Beyond immediate economic gains, the project also places emphasis on renewable energy and environmental performance. The inclusion of financing for solar panels and efficient generator sets is designed to encourage vessel owners to reduce fuel consumption and lower the carbon footprint of fishing activities. Project partners underline that the broader objective extends beyond equipment upgrades to supporting long-term sustainability, resilience, and competitiveness of the Maldivian fisheries sector within the global market for responsibly sourced seafood.
The impact of the scheme is already visible from the first two phases, which were launched in 2024 and 2025. To date, MVR 44.99 million has been approved for 35 applicants, with disbursements currently ongoing. These initial results indicate strong interest from vessel owners and demonstrate the viability of combining concessional Islamic finance, grant support, and modern onboard technologies to strengthen one of the Maldives’ most critical economic sectors. With the opening of the third phase, stakeholders expect a further wave of adoption that will help position Maldivian fishing vessels as more efficient, higher-quality, and better prepared to meet future sustainability expectations from both domestic and international markets.
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