Minister of Finance and Planning, Moosa Zameer has underscored the critical role of a robust capital market in achieving sustainable development and significantly reducing the nation's reliance on foreign aid and financing.
Speaking at the closing ceremony of the 'Maldives Finance Forum 2025,' an annual gathering organised by the Maldives Pension Administration Office (MPAO), Minister Zameer highlighted the urgency of diversifying the country's financial landscape.
The Minister observed that the Maldivian financial system is predominantly dependent on banks, a structure he deems insufficient for the nation's ambitious development goals.
He explained that a banking-centric model struggles to provide the extensive financing required for crucial initiatives such as infrastructure development, housing projects, the burgeoning tourism sector, and economic diversification efforts.
To foster genuine sustainable development and bolster the domestic revenue system, Minister Zameer asserted the imperative to move away from external financial dependencies, acknowledging that public financing alone is also insufficient for large-scale projects.
"A capital market is essential to address these issues," he explained, outlining its pivotal role in finding avenues to invest long-term savings, expanding financing opportunities, and increasing the overall viability of the economy.
He called for the introduction of diverse investment products, including conventional bonds, Sukuk, and sustainability-aligned instruments like green and blue bonds. Crucially, these new avenues should also facilitate easier access to capital for Small and Medium-sized Enterprises (SMEs) and women-led enterprises, fostering inclusive economic growth, he added.
Acknowledging that such a transformation cannot be unilaterally driven by the government, the Minister stressed the indispensable cooperation of all agencies and companies within the financial ecosystem, reiterating that strategically shaping the financial system in these ways will lead to the sustained growth of both the capital market and the broader financial market of the Maldives.