BML Sukuk Aims to Expand Private Investment, Finance Minister Says

Finance Minister Moosa Zameer said on Wednesday that the government-guaranteed sukuk planned for issuance by Bank of Maldives is intended to expand private sector investment, not to support the state budget or government cash flow needs.

The minister made the remarks in a post on X, following Fitch Ratings' decision to upgrade the Maldives' credit rating.

"As I have stated previously, the USD 300 million Sukuk proposed by the Bank of Maldives and guaranteed by the Government of Maldives is neither intended for budget support nor for the cash flow requirements of the Government." the minister said.

Zameer said the initiative is designed to grow the economy through the tourism sector, encourage private sector investment, and expand economic activity beyond the Greater Male Region. He added that the sukuk would help increase revenue-generating sources for the state and support the achievement of fiscal targets in coming years.

"This is a jointly planned initiative of the Government of Maldives and the Bank of Maldives, designed to stimulate tourism-led economic growth, particularly in the northern and southern regions of the country." the minister said.

The minister's statement followed Fitch Ratings' upgrade of the Maldives' long-term foreign-currency issuer default rating from CC to CCC-. Fitch said the upgrade was driven primarily by the repayment of a sukuk obligation in April 2026. The agency also noted that revenue-raising reforms and a new foreign exchange law would improve the government's capacity to secure foreign currency.

Zameer said the rating upgrade reflects improving economic conditions and growing confidence in the government's fiscal reform agenda, following the successful repayment of a USD 500 million sukuk in April.

He credited President Dr. Mohamed Muizzu for the implementation of key fiscal reforms and said the upgrade signals international confidence in the government's economic direction.

"The government of Maldives remains firmly committed to restoring fiscal stability and rebuilding debt repayment capacity," the minister said.

The minister described President Muizzu's policy as focused on strengthening medium-term fiscal stability and debt sustainability through private sector investment and job creation.