The Maldives Monetary Authority has granted an operating licence to the Development Bank of Maldives, clearing the way for the institution to formally commence operations and play a central role in advancing the country’s long-term economic and social development agenda. The bank, which was established on 16 May 2024 as a 100 percent government-owned institution by Dr Mohamed Muizzu, was created in line with national policies designed to address persistent challenges in mobilising financing for large-scale development, particularly in infrastructure and priority public sector projects.
The Maldives Monetary Authority had initially issued a banking licence to the Development Bank of Maldives on 13 October 2024, and has now confirmed that the operating licence has also been granted. With this final regulatory approval, the bank is positioned to begin providing long-term financial assistance that supports sustainable economic growth and diversification. The central bank described the establishment of the Development Bank of Maldives as an important step in expanding and strengthening the national financial sector, adding depth to the country’s banking landscape and enhancing its capacity to channel capital into productive sectors.
As the Maldives’ first investment and development bank, the institution fulfils a key presidential pledge to create a dedicated vehicle for long-term and low-cost financing. The bank is expected to focus on raising funds for infrastructure development, supporting Public Sector Investment Programme (PSIP) projects through syndication finance, and attracting foreign deposits into the domestic banking system. By combining these functions, the Development Bank of Maldives is set to bridge financing gaps that have traditionally constrained major projects, while also improving access to capital for large private investments.
The President has previously emphasised that the bank will serve as an important hub for investors, particularly in sectors that are critical to the country’s future growth. Tourism and resort development are expected to be among the key beneficiaries, with the bank providing long-term financing options that support the creation of new resorts, the expansion and upgrading of existing properties, and the development of associated infrastructure such as marinas, utilities, transport links and staff accommodation. Enhanced access to affordable, long-tenor financing is anticipated to encourage higher-value tourism investments, support sustainable design and construction practices, and strengthen the Maldives’ position as a leading global destination.
Beyond tourism, the Development Bank of Maldives will also target areas such as renewable energy, real estate and housing, contributing to national objectives for energy transition, climate resilience and improved living standards. By offering low-interest loans and tailored financial solutions, the bank is expected to catalyse projects that generate employment, stimulate private sector participation and promote balanced regional development.
With the operating licence now in place, the launch of the Development Bank of Maldives marks a significant addition to the country’s financial architecture. It reflects a strategic commitment to long-term planning, investment-led growth and stronger institutional capacity, reinforcing confidence among domestic and international stakeholders in the Maldives’ economic direction and development prospects.
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