In a key development that aligns with national priorities for inclusive economic growth, Governor Mr. Ahmed Munawwar of the Maldives Monetary Authority (MMA) has highlighted the Maldives Islamic Social Finance Initiative (MISFI) as a central pillar in the country’s ambition to become a regional hub for Islamic finance. The announcement was made at the official launch of the initiative held on 07th May 2025, Wednesday morning, marking a significant step in the implementation of MMA’s Strategic Plan for 2025–2027.
Addressing attendees at the ceremony, Governor Munawwar emphasized that MISFI is not merely a financial programme but a framework built to advance social equity, economic participation, and sustainable development. He noted that the project, rooted in the principles of justice and equality, aims to ensure that every individual in society can actively participate in the economy. “The most important goal of this initiative is to ensure equal economic participation at an individual level,” he said.
Developed following a collaborative study with the University of Selangor in Malaysia, MISFI adopts elements of the Sadaqa House model, a system successfully implemented by Bank Islam Malaysia. The initiative is expected to channel Islamic financial tools toward addressing social challenges and empowering underserved communities in the Maldives.
“Policies like this are best when driven by research,” Governor Munawwar remarked, highlighting that MISFI exemplifies the application of evidence-based policymaking in national economic planning.
Professor Mohammad Farid Ravi bin Abdullah, Vice-Chancellor of the University Islam Selangor, echoed the Governor’s sentiments. He noted that Islamic finance, when applied with social intent, has the capacity to support those in vulnerable situations. “This initiative will help ensure financial support reaches those most in need,” he stated, calling for a culture of accountability and compassion within the system.
MISFI is structured as a collaborative fund established by the MMA with the support of the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB). Funding commitments include MVR 20 million from MMA, MVR 30 million from MIB, and an additional MVR 200 million from BML over the next three years. These resources will be strategically directed with guidance from the Ministry of Social and Family Development, which has been tasked with identifying key areas requiring social investment.
The fund is designed to integrate Islamic finance solutions with national social development goals, creating new avenues for partnership between financial institutions and communities. By promoting values of fairness and shared prosperity, the initiative seeks to enhance the inclusivity and resilience of the Maldivian economy.
As interest in Islamic finance continues to grow across the region, the Maldives is positioning itself as a forward-thinking destination for financial innovation with a focus on ethical and community-based development, a message that resonates strongly with travellers, investors, and international partners alike.
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