Bank of Maldives (BML) has signed an agreement with the Ministry of Construction, Housing and Infrastructure to secure land in Hulhumalé Phase 1 and 2, and Vilimalé, for the development of 3,000 housing units under the Inclusive National Affordable Housing Scheme.
The initiative, mandated by the Maldives Monetary Authority (MMA), requires all commercial banks to allocate between 10% and 15% of their total loan portfolio to affordable housing projects. The scheme aims to expand home ownership opportunities through a lease-to-own model, allowing first-time buyers to make monthly payments before taking full ownership.
The agreement was signed on Thursday by Housing Minister Dr Abdulla Muththalib and Hassan Shaam, Managing Director of BML Affordable Home Leasing Pvt Ltd, a newly formed subsidiary of BML created to implement the project in compliance with Shari’ah principles.
Speaking at the signing ceremony, BML CEO and Managing Director Mohamed Shareef said the bank was “proud to be the first in the country to begin work towards implementing this initiative”. He added: “As the largest bank in the country, holding over 52% of the total loan market share, we recognise the tremendous privilege and responsibility we have in positively contributing to this critical project.”
Under the scheme, BML will finance the housing units, which will be constructed by qualified developers. The bank has already invited local and foreign firms to submit expressions of interest, with evaluations and due diligence to follow before signing memorandums of understanding.
The project forms part of the government’s broader National Housing Affordability and Accessibility Project, approved by the Cabinet earlier this year, which seeks to improve access to affordable housing across the Maldives.
