BML to convert SDFC into Islamic digital bank for SMEs

The Bank of Maldives (BML) has announced plans to transform its subsidiary, the SME Development Finance Corporation (SDFC), into a fully Shariah-compliant digital bank dedicated to supporting small and medium enterprises (SMEs).

The move follows a Cabinet decision on Sunday approving the sale of the government’s shares in SDFC to BML.

In a statement, BML said the restructured SDFC will offer Islamic financing solutions tailored for Maldivian SMEs, with a focus on leveraging advanced digital technology.

The new strategy will prioritize funding for start-ups, women-led businesses, fishermen, farmers, agribusinesses, e-commerce ventures, and other sustainable enterprises, the bank said.

BML noted that acquiring SDFC will allow it to utilize its strong financial base, extensive banking experience, and digital capabilities to accelerate the digital transformation of MSME financing in the Maldives. The initiative is also expected to promote broader financial inclusion and contribute to national economic growth.

As part of its first-year targets, BML aims to disburse MVR 500 million through the subsidiary. Additionally, MVR 300 million will be invested over the next three years via the Maldivian Islamic Social Finance Initiative (MISFI), supporting community development and sustainable business ventures across the country.