Gov’t Provides No Concrete Update on Development Bank Progress

Government spokesperson Mohamed Hussain Shareef has said today that the establishment of the Development Bank of Maldives (DBM) remains ongoing, but provided no concrete timeline or details on the bank’s progress despite it having received an operating licence more than a year ago.

Speaking at a “Presser with the Spox” press conference, Shareef said there had been no change to the government’s plans for the bank, adding that attracting foreign investors had always been a key part of the strategy for ensuring its success. 

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He said the government had engaged with foreign diplomats and held discussions aimed at bringing foreign investors into the project when they opened the bank. According to Shareef, discussions had also taken place with investors and experts from the United Arab Emirates regarding the structure of the bank. 

However, he was unable to say whether the government had entered into any formal partnership with those experts, stating that he would need to verify the information and provide further details later.

Shareef also said additional information regarding the bank’s development would be released at a later date.

The Development Bank of Maldives was established as one of President Dr Mohamed Muizzu’s key electoral pledges. President Muizzu incorporated the Development Bank of Maldives Limited on 16 May 2024 under powers granted by the Companies Act.

The Maldives Monetary Authority subsequently granted the bank an operating licence in January last year, paving the way for it to commence operations.

The bank was envisioned as the Maldives’ first investment and development bank, expected to provide long-term financing and low-interest loans for major development projects and private-sector investments. It was also expected to serve as a central hub for investors in sectors including tourism, renewable energy, real estate and housing.

Despite those expectations and the issuance of an operating licence, no major financing programmes, investment initiatives, or operational activities have been publicly announced to date.

Responding to a separate question on the closure of the SME Hub, which previously operated from the building now housing the bank, Shareef said he did not have complete information on the matter and would provide a response later.

The closure of the SME Hub resulted in the loss of space used by a number of small businesses, including food vendors. The facility had been one of the few indoor venues in Malé where small enterprises could rent space and operate with dedicated facilities.