The successful repayment of the USD 500 million sovereign sukuk has significantly bolstered international investor confidence in the Maldivian economy, according to Minister of Economic Development and Trade, Mohamed Saeed.
The move, which averted potential sovereign default, has been hailed as a major economic victory for the nation and reported as such by international media outlets.
Speaking at a press conference at the President’s Office, Minister Saeed detailed the government's focused efforts to settle the Islamic bond, which was issued by the previous administration in 2021 and was due to mature on 8 April this year. He emphasised that fulfilling this substantial obligation was a top priority for President Dr Mohamed Muizzu upon taking office, representing a critical step in stabilising the nation's finances.
Minister Saeed underscored the gravity of the situation, noting that international reports had previously drawn parallels to economic difficulties in neighbouring Sri Lanka, raising concerns over the Maldives' ability to manage its debt.
The government settled the obligation on 2 April, utilising state reserves and the Sovereign Development Fund. Minister Saeed stressed that the timely repayment sends a powerful message of fiscal reliability to the global market, particularly during a period of serious challenges caused by conflicts in the Middle East.
"It gave a lot of confidence to many people who wanted to invest in Maldives. It also gave a lot of confidence to those who have invested in Maldives, including foreign investors and local businesses," the Minister said.
He highlighted that positive international media coverage of the repayment will be seen by millions, serving as a crucial reassurance to both current and prospective investors.
Minister Saeed concluded that this achievement has firmly re-established the Maldives' credibility on the world stage.
"In the future, international investors... certainly gained confidence. Therefore, I repeat that the President’s biggest achievement is to repay the sukuk and save the country from default,” he declared.