The Maldives is exploring new financing opportunities with the Saudi Fund for Development (SFD) for priority infrastructure projects, as the Government continues efforts to strengthen essential public services, expand critical infrastructure and support the country’s long-term economic development.
Potential financing opportunities were discussed during a meeting between Minister of Finance and Public Enterprises Hassan Zareer and SFD Chief Executive Officer Sultan bin Abdulrahman Al-Marshad. The discussions focused on identifying opportunities for SFD financing for key infrastructure projects aligned with the Maldives’ broader development requirements and economic priorities.
Although specific projects, financing amounts and implementation timelines have not yet been publicly announced, the discussions underline the Government’s continuing engagement with international development partners to mobilise concessional financing for infrastructure that can contribute to economic activity, improve the delivery of public services and address development requirements across the island nation.
The meeting also provided an opportunity for the Maldives and SFD to review their longstanding development partnership. Minister Zareer expressed appreciation for the Fund’s continued support to the Maldives and acknowledged its contribution to the country’s development over several decades. The discussions centred on strengthening cooperation and exploring how future financing could support priority sectors of the Maldivian economy.
Following the discussions with the Finance Minister, Al-Marshad met President Dr Mohamed Muizzu at the President’s Official Residence, Mulee’aage. The meeting reviewed the Saudi Fund for Development’s extensive involvement in the Maldives and discussed opportunities to further expand development cooperation between the two sides.
President Muizzu expressed his appreciation to the Saudi Fund for Development and the Government of the Kingdom of Saudi Arabia for the assistance extended to the Maldives throughout the country’s development journey. Al-Marshad reaffirmed the Fund’s commitment to its strategic relationship with the Maldives, with both sides expressing their intention to strengthen a partnership that has supported major areas of national development for nearly five decades.
The latest engagement comes as the Government continues to prioritise infrastructure investment as an important component of its wider development agenda. For an island nation with communities dispersed across a vast geographical area, investment in transport connectivity, healthcare, housing, urban infrastructure and other essential services has a direct role in supporting economic opportunities while improving access to services for communities across the country.
Saudi Arabia, through SFD, has been an important development financing partner of the Maldives since 1978. Over the course of the partnership, the Fund has provided more than USD 488 million through 17 development loans supporting 14 projects and programmes in the country. The financing has contributed to development across transport, healthcare, housing, water and sanitation, urban development and other infrastructure sectors.
The relationship between SFD and the Maldives dates back to financing provided for the development of Malé International Airport, now Velana International Airport. The airport has since developed into the principal international gateway of the Maldives and plays a central role in supporting the country’s connectivity, tourism industry, trade and wider economic activity.
SFD’s contribution to the continued expansion of Velana International Airport has grown substantially over the years. The Fund’s total financing for the airport development project has reached approximately USD 217 million, supporting infrastructure designed to strengthen passenger handling capacity and improve the airport’s ability to accommodate continued growth in international travel.
The wider airport development is particularly significant to the Maldives because aviation remains essential to the country’s economy and international accessibility. Development plans for Velana International Airport include new international and domestic terminal infrastructure and facilities intended to strengthen operational capacity. The development is designed to accommodate up to seven million passengers annually, while allowing for future expansion to handle as many as 15 million passengers per year.
SFD has also expanded its support into the Maldives’ healthcare sector. A USD 50 million development financing agreement supports a healthcare development programme that includes the establishment of three hospitals with a combined capacity of 150 beds. The programme is intended to improve healthcare infrastructure, strengthen access to treatment and introduce modern medical facilities and technologies.
Hulhumalé has been another significant area of Saudi-funded development cooperation. SFD has provided approximately USD 80 million towards the Hulhumalé Island Development Project, supporting infrastructure including a marine channel, bridges, ports and shoreline protection works. These investments form part of the wider development of Hulhumalé as a major urban centre capable of accommodating a growing population while expanding economic and social opportunities.
Housing development has also received SFD support. In 2025, the Fund provided a USD 25 million concessional development loan for an affordable housing project intended to deliver more than 400 fully integrated housing units and benefit over 2,700 people. The project includes supporting infrastructure and services, contributing to the continued expansion of housing availability and urban development in the Maldives.
Together, these projects demonstrate the breadth of the development relationship between the Maldives and Saudi Arabia, extending from international aviation and urban development to healthcare, housing and essential infrastructure. They also illustrate the role concessional development financing can play in enabling large-scale projects that require significant long-term capital investment.
Established in 1974, the Saudi Fund for Development is Saudi Arabia’s principal institution for international development financing. Through concessional development loans, the Fund supports economic and social development projects in developing countries across sectors including transport, healthcare, education, water and sanitation, housing, energy and other forms of social and economic infrastructure.
For the Maldives, continued engagement with SFD provides an avenue for accessing development financing for projects that can strengthen national infrastructure while supporting economic and social development. The latest discussions also reflect the Government’s continuing engagement with bilateral and multilateral development partners as it works to secure financing for projects considered important to the country’s future development.
No new financing agreement was publicly announced following the latest meetings, and details of the infrastructure projects being considered have not yet been disclosed. However, the discussions between the Government and SFD indicate that both sides are examining opportunities to extend their decades-long partnership into additional priority infrastructure investments.
With SFD already having played a substantial role in financing some of the Maldives’ most important infrastructure and public service projects, further cooperation could extend development support into new areas while complementing the Government’s efforts to strengthen infrastructure, improve essential services and create the foundations for sustainable economic growth across the country.
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