Zameer says BML’s USD 300m sukuk aims to expand private‑sector investment, not fund the state budget

The government‑guaranteed sukuk to be issued by the Bank of Maldives (BML) is aimed at expanding private investment, Finance Minister Moosa Zameer said Wednesday.

In a post responding to Fitch Ratings’ upgrade of the Maldives’ credit rating, Zameer said the sukuk is a joint financial initiative between the government and BML designed to boost medium‑term economic growth, particularly tourism in the northern and southern regions.

“As I have said before, the USD 300 million sukuk proposed to be issued by the Bank of Maldives under government guarantee is not intended to support the state budget or cash flow needs of the government,” Zameer said.

He said the purpose of the initiative is to stimulate the economy through tourism, facilitate private‑sector investment, and expand economic activity beyond the Male' region. According to Zameer, the sukuk will broaden the state’s revenue base and support the government in meeting its fiscal targets in the coming years.

“This is a joint initiative of the government and the Bank of Maldives to boost the economy through tourism, especially in the northern and southern regions of Maldives,” he added.

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.

This is a jointly planned initiative of the…

— Moosa Zameer (@MoosaZameer) June 3, 2026

Zameer made the remarks after Fitch Ratings upgraded the Maldives’ long‑term foreign‑currency issuer default rating from CC to CCC‑. Fitch said the upgrade reflects improved financing flexibility following the successful settlement of the USD 500 million sukuk in April 2025. The agency also noted that revenue reforms and the Foreign Exchange Act will strengthen the government’s ability to raise foreign currency.

In a statement, the Finance Ministry said the Iran conflict has created short‑term challenges for the Maldivian economy. However, fiscal and monetary reforms, along with an improved foreign‑exchange liquidity outlook, have strengthened the economy’s ability to withstand external shocks. The ministry said the government intends to continue economic activity with the aim of keeping expenditure within the approved budget.

The ministry added that the government’s strategic investments are expected to increase economic activity, improve viability and sustainability, and support a rapid recovery once global conditions stabilise.

Fitch has kept the Maldives’ rating at low levels for the past two years due to investor‑confidence concerns. The country was downgraded to CCC+ in June 2024, then to CC in August 2024, and the rating remained at CC throughout 2025.