The Ministry of Islamic Affairs and the Bank of Maldives (BML) have signed a landmark investment agreement to accelerate the development of Islamic endowments, or Waqf assets, across the country. The initiative seeks to address persistent funding gaps that have hindered the progress of critical infrastructure supporting religious services.
The memorandum of understanding was executed by Dr Mohamed Shaheem Ali Saeed, Minister of Islamic Affairs, and Mohamed Shareef, Chief Executive Officer of BML. The agreement formalises a joint commitment to advance Islamic development through financial arrangements governed by Islamic principles.
Delays in launching Waqf projects, Minister Shaheem noted, had stemmed from a lack of secure funding. Institutional support, such as that provided by BML, now enables the government to pursue additional initiatives. Under the terms of the agreement, all financial mechanisms will adhere strictly to Islamic tenets.
As part of this commitment, BML Islamic has pledged USD 22.69 million in financing for government-led Waqf building projects in the Malé region. The bank’s involvement extends beyond funding, with strategic support planned for the development of key facilities including Dar al-Salam in Hulhumalé and Dar al-Arqam in Malé.
BML CEO Shareef affirmed the bank’s role in facilitating both financial and strategic assistance. He reiterated that all support will be structured in accordance with Islamic principles, and highlighted the importance of establishing sustainable, income-generating assets to advance religious services. He also highlighted the need to identify areas within these projects that contribute to human resource development.
The minister described BML’s investment as a vital service to both the community and the nation. “BML’s investment, carried out strictly under Islamic principles, constitutes a valuable service to the community and the nation as a whole. The Waqf projects currently being established are intrinsically linked to Islamic services throughout the entirety of the Maldives,” said Minister Shaheem.
He continued, “Given that there are hundreds of mosques across the Maldives, the associated costs, including simultaneous repairs and all related expenditures, cannot be covered by relying solely on the state budget. Therefore, alternative sectors must be identified to secure the necessary funding. These facilities, which are being established in Malé, will ultimately yield benefits for the entire country.”
The government aims to complete the current Waqf projects within approximately two years. Both the Dar al-Salam and Dar al-Arqam buildings are planned as 12-storey structures. The Dar al-Arqam development in Malé is projected to cost USD 2,554,545.45, with construction awarded to Rasheed Carpentry and Construction Pvt. Ltd. A Waqf building dedicated to the Holy Quran is also planned for Malé.
The initiative’s scope extends beyond the capital. Minister Shaheem confirmed that Awqaf projects will be launched in regional centres following a directive from President Dr Mohamed Muizzu. New developments are planned for Addu City, Fuvahmulah City, Thinadhoo City, Kulhudhuffushi City, and Vilingili in Gaafu Alifu Atoll. These projects are expected to bring transformative change to the Islamic sector nationwide.