Maldives Eyes Doubling Financial Sector’s Share of GDP

The Maldives Monetary Authority (MMA) aims to double the financial sector’s contribution to the country’s gross domestic product, Governor Ahmed Munawar has said, as the central bank seeks to expand the sector and encourage greater local investment.

Speaking at the grand opening of Maldives Premier Bank, Munawar said expanding and deepening the financial sector was one of the MMA’s key priorities, with significant potential for the sector to play a larger role in the Maldivian economy.

He said the domestic banking sector remained highly profitable, recording a profit before tax of MVR 5.15 billion, or about USD 356 million, in 2025.

Banks also paid approximately MVR 737.38 million, or about USD 48 million, in Bank Income Tax during the year, accounting for around 14 percent of total income tax collections, he said.

Despite the sector’s profitability, Munawar said there was considerable scope for domestic banks to expand their role in financing key areas of the economy.

Bank lending to the tourism sector currently stands at around MVR 13 billion, or about USD 800 million, while the total estimated value of the tourism sector exceeds USD 5 billion, he said.

On that basis, domestic bank financing accounts for only about 16 percent of the estimated value of the tourism sector.

“These figures demonstrate the strength of the sector, but they also demonstrate the opportunity before us,” Munawar said.

He also highlighted the amount of banking-sector profits flowing out of the country. Around 11 percent of banking-sector profits, or approximately USD 38 million, were remitted abroad last year, while close to USD 200 million was remitted overseas over the past five years, he said.

Munawar said this was one of the reasons the MMA wanted to see more strong, well-governed local banks established and expanded in the Maldives.

The central bank is pursuing legislative changes aimed at encouraging greater local investment in the financial sector, including amendments to the Banking Act and the introduction of a new Islamic Finance Act, he said.

Munawar encouraged more Maldivians to invest in the sector so that a greater share of the returns generated by banking could be retained within the domestic economy.

Greater local participation, he said, would help support investment, create jobs and strengthen domestic financial capacity.

Munawar described Maldives Premier Bank as a positive development in that direction.

He said the MMA wanted to see strong local financial institutions grow alongside international banks, helping to create a more competitive, diversified and resilient financial system.