Maldives and ITFC Sign US$1.5 Billion Trade Finance Framework

The Government of Maldives and the International Islamic Trade Finance Corporation (ITFC) have signed a new five-year Framework Agreement under which up to US$1.5 billion will be mobilised to finance public- and private-sector trade operations in the Maldives.

The agreement, covering the period from 2026 to 2031, was signed at the Ministry of Finance and Public Enterprises in Malé during an official visit by ITFC Chief Executive Officer Eng. Adeeb Yousuf Al-Aama.

Minister of Finance and Public Enterprises and Islamic Development Bank Governor for the Maldives Hassan Zareer signed the agreement on behalf of the Maldivian government.

Under the framework, financing will be made available for the import and export of essential and strategic commodities. It will also cover trade financing for state-owned enterprises and eligible private-sector companies.

The agreement further provides for financing lines to be established through Maldivian financial institutions, allowing greater support to be extended to small and medium-sized enterprises and other private businesses.

In addition to financing, ITFC and the government will explore trade-related technical assistance, advisory services and initiatives aimed at strengthening trade capacity and improving access to international markets. These programmes will be aligned with the Maldives’ national development priorities.

Minister Zareer said ITFC’s support to the Maldives had expanded considerably since the institution was established, developing from assistance for the country’s energy requirements into a broader trade and development partnership.

According to the minister, the partnership now supports the import of staple foods and medical supplies while contributing to the development of important economic sectors, including fisheries and SMEs.

He highlighted the rollover trade finance facility extended to State Trading Organization PLC since 2017 as an important component of the partnership.

“This mechanism continues to provide vital liquidity support, ensuring uninterrupted bulk procurement of essential commodities and guaranteeing operational predictability for state trade,” Minister Zareer said.

He added that ITFC had remained one of the Maldives’ most dependable development partners during periods of volatility in global markets.

ITFC CEO Eng. Adeeb Al-Aama said the new framework builds on a partnership developed over several years and will expand cooperation with Maldivian financial institutions and the private sector.

“Through the agreement, ITFC will work with the government and its partners to mobilise financing for essential trade while expanding our cooperation with the private sector and financial institutions,” he said.

The latest agreement follows the first five-year Framework Agreement between ITFC and the Maldives, which was signed in 2019 and concluded in October 2024. During that period, ITFC approved US$1.5 billion and disbursed US$1.7 billion in financing to the Maldives.

Since commencing operations in 2008, ITFC has approved more than US$3.3 billion in financing for the country. The financing has supported imports of petroleum products, food commodities, medical supplies and construction materials, in addition to private-sector operations.

During his visit, Eng. Adeeb Al-Aama met President Dr Mohamed Muizzu, Minister Hassan Zareer and Maldives Monetary Authority Governor Ahmed Munawar. Discussions focused on strengthening trade finance cooperation and supporting the Maldives’ broader economic priorities.

The ITFC delegation also met representatives of STO, the corporation’s principal financing partner in the Maldives.

The delegation visited STO’s perishable and staple-food warehouse facilities in Malé and the Funadhoo Oil Terminal to review operations linked to commodities financed through ITFC facilities.