First development bank of Maldives opens

The Maldives first development bank, Development Bank of Maldives (DBM) has been inaugurated.

President Dr Mohamed Muizzu officially opened the bank during a ceremony held at the Islamic Center last night, after which he visited the bank’s office.

DBM aims to address challenges in funding Public Sector Investment Program (PSIP) projects through syndication finance and to enhance the appeal of foreign currency deposits within the Maldivian banking system. It will also finance both government and private sector projects.

Central Bank, Maldives Monetary Authority (MMA) granted the bank its operating license last month.

Speaking at the event, Minister of Economic Development and Trade Mohamed Saeed highlighted the significance of DBM in advancing Maldives' economic and social sectors. He noted that the country has a longstanding trade oriented history and emphasized the bank's role in diversifying and expanding the economy.

"The bank will provide financing for infrastructure development and business expansion, enabling sustainable economic growth," the minister said.

He also highlighted the bank's potential to facilitate other financial services, including investment banking, wholesale banking, asset management, hedge funds, maritime insurance, and Islamic finance.

Saeed said that a Financial Center Law would be submitted to parliament in the coming weeks to support the financial sector's growth. He added that international entities such as the Qatar Financial Centre, Dubai International Financial Centre, and Abu Dhabi Global Market are assisting in establishing Maldives as an international financial hub.

The "Development Bank of Maldives Limited", established on May 16 last year, is wholly owned by the Maldivian government.

DBM CEO Noel Gregor Paterson-Jones stated that the bank would provide financial assistance for projects nationwide, supporting Maldivian businesses and fostering economic resilience.

He emphasized the importance of developing sectors like renewable energy, fisheries, agriculture, and the digital economy to shield the economy from external shocks.

Gregor outlined DBM's objectives to expand the economy, achieve developed economy status by 2040, and support the government's vision.

"The bank will assist both large scale projects and small and medium enterprises. In the medium term, we will focus on funding initiatives to build a digital economy, while the long-term goal is to transform the Maldives into a developed economy," he said.