President: Development bank will be a hub for investment in real estate and other sectors

The Development Bank of Maldives (DBM) will be a hub for investment in development of tourist resorts, real estate, housing market and other economic sectors, says President Dr. Mohamed Muizzu.

He made the remark in a video message on Monday morning, prior to a meeting with the soon-to-be appointed chairperson and chief executive officer of the DBM.

In his message, President Muizzu stressed the significance of the establishment of DBM – which will become the first development bank to be established in the Maldives.

He said that the biggest purpose of the DBM is to diversify and expand the Maldivian economy.

“We will operate this bank, In Sha Allah. The CEO and chairperson selected both have extensive experience in financial institutions across the world. I am on my way to meet them,” he said.

President Muizzu said that once the DBM begins operations, it will become a hub for investment in the tourism industry, the renewable energy sector, and more.

He said that it will also be an investment hub for the real estate and housing sector.

މި ސަރުކާރުގެ ވަޢުދާ އެއްގޮތަށް ރާއްޖޭގައި އަލަށް އުފައްދާ ޑިވެލޮޕްމަންޓް ބޭންކް އޮފް މޯލްޑިވްސް ލިމިޓެޑްގެ ޗެއަރޕަރސަން އަދި ސީ.އީ.އޯ ކަމަށް ޢައްޔަނުކުރާ ބޭފުޅުންނާ ބައްދަލުކުރެއްވުމަށް: pic.twitter.com/5b095vGlfx

— The President's Office (@presidencymv) August 26, 2024

Development banks are financial institutions with the focus of introducing new businesses, industrial activities, and other economic initiatives in countries.

The banks are primary lenders for new ventures with loan facilities to setup businesses and activities as well.

The establishment of such an institution in Maldives is one of President Dr. Mohamed Muizzu’s electoral pledges.

President Muizzu used the powers vested in him under the Companies Act to form the Development Bank of Maldives Limited back in May.

The Economic Ministry applied with the central bank, Maldives Monetary Authority (MMA) for a license to operate DBM on July 28.

Two members were elected to the bank’s board on August 21. They are:

• Ahmed Ali, a Maldivian;
• Saeed Abdul Nasir Bin Saeed Hassan Al-Junaid, a Singaporean; and
• Robert Daniel Kant, a Briton.

According to the President’s Office, the company was formed in alignment with the government’s policies, including the funding of infrastructure projects, investing in sustainable economic and social development, addressing the difficulties associated with financing PSIP projects through syndicated financing, and fostering a greater interest in maintaining foreign exchange within the nation's banking system.