Maldives adopts Shariah-compliant policy to support small businesses
State lender to offer Shariah-compliant financing under Bank of Maldives to expand access and boost economic inclusion
MALE, Maldives (MNTV) — The Maldives is adopting a Shariah-compliant financing policy for small businesses, following the sale of a state-owned lending institution to the country’s largest commercial bank.
The Cabinet approved the transfer of government shares in the SME Development Finance Corporation to the Bank of Maldives after a review by the Ministry of Finance and Planning. Officials say the move will ensure continued access to credit for micro, small, and medium enterprises while aligning lending with Islamic principles.
Under its new structure, the state lender will operate entirely under Shariah law, offering interest-free financing tailored to sectors critical to the Maldivian economy. These include agriculture, fisheries, trade, e-commerce, and women-led businesses.
Bank of Maldives said the shift would expand financial participation and promote long-term economic growth by providing accessible, faith-aligned products backed by its national network and digital infrastructure.
Chief Executive Officer Mohamed Shareef said the acquisition would allow the bank to deliver targeted financial tools that help entrepreneurs grow sustainably. “We are committed to offering solutions that reflect community values while supporting the country’s economic development,” he said.
In its first year, the bank aims to disburse up to $32.4 million through the Shariah-compliant subsidiary. Over the next three years, an additional $19.4 million will be invested through the Maldivian Islamic Social Financing Initiative to strengthen community development and enterprise resilience.
As part of its transformation, the subsidiary will also launch a digital lending platform and online marketplace to increase transparency, efficiency, and access to services.
Officials say the policy shift reflects the government’s broader commitment to Islamic finance as a tool for inclusive economic growth. Further details on governance and service rollout are expected in the coming weeks.
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