Minister of Economic Development and Trade, Mohamed Saeed, has announced that the Development Bank of Maldives (DBM) will serve as a key partner in facilitating financing for development projects in the Maldives through international financial institutions and investors. He shared these insights in a recent social media post. In his statement, Minister Saeed highlighted the challenges posed by the Maldives achieving middle-income status, which has resulted in a decrease in grants and concessions. He pointed out that while the country’s debt continues to rise, its foreign exchange reserves as a percentage of GDP remain the same due to a reliance on imports. The Minster underscored the necessity for a bank with a long-term vision to strengthen the Maldives’ financial system and facilitate essential development funding in collaboration with other financial entities. He outlined several key objectives for the Development Bank: reducing wealth disparities, improving housing, alleviating the state’s debt burden, and revitalizing underdeveloped areas. The bank will provide not only loans but also equity financing, fund syndication, and risk insurance. Focusing on five priority areas—energy and food security, housing, environmental protection, tourism, and marine economic activities—the Development Bank is poised to play a vital role in securing financing for various industries. Minister Saeed also addressed the issue of US dollar shortages, attributing them to systemic financial challenges rather than economic ones. He expressed confidence that the Development Bank will enhance foreign direct investment and increase the availability of dollars in the Maldives.
