A newly launched Islamic soft loan scheme by the SME Development Finance Corporation (SDFC) is set to inject renewed energy into the Maldivian local tourism sector, offering accessible financing solutions tailored for small and medium enterprises (SMEs). Titled Thijarah Rashu Fathuru, this financing scheme supports the growing interest of local entrepreneurs in enhancing guesthouse tourism, food and beverage services, water sports activities, and the integration of smart technology into tourism-related businesses.
Applications for the scheme are now open through SDFC’s SME portal, offering eligible businesses up to USD 324,254 under Shariah-compliant financing terms. The funding can be used for the construction, renovation, or development of guesthouses and hospitality ventures such as cafes and restaurants, as well as marine leisure services, which are increasingly popular among visitors seeking unique, local experiences. With a competitive annual financing rate of 9.5%, the scheme provides a 10-year repayment window and an 18-month grace period, with mortgage requirements applied for loan exposures exceeding USD 45,396.
This move comes at a time when the government has approved the transfer of its ownership in SDFC to the Bank of Maldives (BML). The sale, endorsed by the Cabinet following a proposal from the Ministry of Finance and Planning, reflects the state’s strategic direction to digitize and expand MSME financing solutions through BML’s robust infrastructure and nationwide presence.
BML, which will assume full ownership of SDFC, has announced a strong commitment to supporting the SME sector through a series of initiatives post-acquisition. In the first year alone, BML aims to disburse loans worth USD 32.43 million (in local currency), with a five-year target of USD 123.24 million. This includes extending Shariah-compliant financing, enhancing digital banking systems, and maintaining stable financing rates to support businesses in sectors such as tourism, fisheries, commerce, IT, and construction.
Founded on 18 March 2019, SDFC, often referred to as SME Bank, has played a pivotal role in empowering local enterprises by offering financial assistance across key economic sectors. Its newest offering, Thijarah Rashu Fathuru, is expected to further drive community-led tourism, which has become a cornerstone of the Maldives’ diversified tourism strategy aimed at encouraging guesthouse developments on local islands alongside traditional resort tourism.
By aligning with BML’s expansive digital capabilities and banking expertise, this transition is expected to improve nationwide access to financing, especially for entrepreneurs in outer atolls. With a strong focus on Islamic banking principles, this new phase of SDFC’s operations reflects the country’s broader commitment to inclusive financial growth and ethical tourism development, promoting authentic experiences for visitors while empowering local communities to participate in the thriving tourism economy.
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