The Saudi Fund for Development (SFD) has strengthened its enduring partnership with the Maldives by providing a USD 18.61 million loan to accelerate the expansion of Velana International Airport (VIA).
The agreement was formalised at a signing ceremony at the President's Office by Minister of Finance and Planning Moosa Zameer, while Sultan bin Abdulrahman Al-Murshad, Chief Executive Officer of the SFD, signed on behalf of the Saudi institution. With the additional funding in place, the finance ministry has expressed optimism regarding the project's accelerated timeline, highlighting its potential to generate profound economic benefits for the Maldives.
Upon completion, the finance ministry stated, the expanded airport is set to transform the nation's connectivity by accommodating a greater number of tourists and airlines. This capability is projected to significantly bolster tourism and commerce, catalysing growth in related industries. As a linchpin of the Maldivian economy, the tourism sector is expected to further strengthen its contribution to the nation's gross domestic product, the ministry added.
This collaboration builds on a long-standing relationship between the Maldives and the SFD. Over the years, the fund has provided more than USD 470 million in financial support spanning critical sectors such as transportation, healthcare, housing, and fisheries.
The SFD's recent pledge of USD 150 million in May 2024 exemplifies its dedication to the Maldives' development. Of this total, USD 100 million was directed towards advancing the VIA expansion, reinforcing efforts to elevate tourism infrastructure. The remaining USD 50 million was allocated for healthcare development, a priority that includes constructing three hospitals to enhance medical services across the country.
Since its establishment in 1974 by the Kingdom of Saudi Arabia, the SFD has advanced its mission of fostering sustainable growth in developing nations. By facilitating access to soft loans and grants, the institution has channelled resources towards sectors integral to economic and social progress, including infrastructure, healthcare, education, and energy.