The Ministry of Finance and the Islamic Development Bank (IsDB) have signed a Memorandum of Understanding (MoU) to establish a USD40 million Impact Fund to provide financial assistance to small and medium enterprises (SMEs) in the Maldives. The MoU was signed on the sidelines of the Annual Meeting of IsDB in Jeddah, Saudi Arabia, by Minister of Finance Ibrahim Ameer and Chairman and President of ISDB Dr. Muhammad Al Jasser.
The finance ministry stated that the USD40 million fund will provide the necessary financial and technical assistance for the growth of SMEs in the Maldives. The proceeds of the investments will further expand the fund, according to the ministry. The fund will also be managed and operated by the Maldives Fund Management Corporation Limited (MFMC) and SME Development Finance Corporation (SDFC).
The government stated that developing SMEs is an important initiative to build a sustainable economy. The government also stated that the development of SMEs will increase employment opportunities and economic activities in the islands.