Minister of Economic Development and Trade Mohamed Saeed has revealed the government's goal of commencing operations of the Development Bank of Maldives (DBM) within this year.
Maldives Monetary Authority (MMA) issued the licence required for the DBM on October 13. The licence was issued under the condition that the DBM begins operations before October 12, 2025. The bank is 100% state-owned. MMA has stated that the commencement of services from the DBM will play a significant role in enhancing the financial sector.
In a statement, Minister Saeed has stated that efforts are underway to recruit employees for the bank. The minister also disclosed that the government aims to ensure that the bank is operational before year-end.
President Dr. Mohamed Muizzu announced the formation of the DBM, on May 16. The request to obtain the licence required to create the bank was submitted to MMA in July.
The government decided to establish the DBM such that it aligns with the government’s strategic policies. Its primary objectives include funding infrastructure projects, investing in sustainable economic and social development, and addressing the challenges associated with financing Public Sector Investment Program (PSIP) projects through syndicated financing. Additionally, it seeks to promote greater retention of foreign exchange within the nation’s banking system, fostering economic stability and growth.
The DBM will play a pivoital role in enhancing the financial system and facilitate essential development funding in collaboration with international and other financial entities and investors. Key objectives for the Development Bank include 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.