Maldives secures USD 9.7 million Kuwait Fund loan for new Th. Atoll hospital

The Maldives has secured approximately USD 9.7 million in financing from the Kuwait Fund for Arab Economic Development to construct a new 50-bed hospital in Th. Veymandoo.

The KWD 3 million loan will finance the Th. Veymandoo New Hospital Construction Project, which will provide secondary healthcare services to residents of Th. Atoll and surrounding communities.

The agreement was signed by Minister of Finance and Public Enterprises Hassan Zareer and Kuwait Fund Acting Director General Rashaid A. Al-Bader.

The financing was approved under the Kuwait Fund’s existing annual country lending limit of approximately USD 10 million for the Maldives.

The fund has, however, decided to increase that annual limit to approximately USD 40 million from 2027, following a request made by Zareer during a meeting held on the sidelines of the Asian Infrastructure Investment Bank Annual Meeting.

The increase would quadruple the amount available annually under the Kuwait Fund’s country lending limit for the Maldives.

The new hospital is expected to address space constraints at the existing Th. Atoll Hospital and expand access to secondary healthcare services in the region.

Al-Bader said the agreement represents the Kuwait Fund’s 15th loan to the Maldives and its first investment in the country’s health sector.

Since its first financing agreement with the Maldives in 1976, the fund has provided 14 concessional loans worth around USD 185 million, in addition to approximately USD 5.7 million in grants and technical assistance.

The Kuwait Fund has also expressed interest in participating in financing the Thilafushi port development project and said it is ready to begin discussions on potential financing.

The fund has previously financed major projects in the Maldives, including developments at Velana International Airport and the Fuvahmulah Coastal Protection Project.