A sovereign-guaranteed Sukuk to be issued by the Bank of Maldives is strictly targeted at expanding private sector investments, Moosa Zameer, the Minister of Finance and Public Enterprises, stated. Following Fitch Ratings' upgrade of the credit rating of the Maldives from 'CC' to 'CCC-', the planned USD 300 million issuance represents a joint transaction between the government and the bank to drive medium-term economic growth, Minister Zameer noted on X, adding it would advance tourism in northern and southern regions.
"As I have previously stated, the USD 300 million sovereign-guaranteed Sukuk proposed by the Bank of Maldives is not a transaction designed to subsidise the state budget or alleviate the government's cash-flow requirements," Minister Zameer said, explaining it would stimulate economic activity beyond Malé, increase state revenue, and help achieve future financial targets.
"This represents a strategic initiative coordinated between the government and the Bank of Maldives to stimulate economic growth through the tourism sector, with a specific focus on developing the northern and southern regions of the country," he added.
Fitch's upgrade, primarily attributed to the successful repayment of a USD 500 million Sukuk in April and obligations due in April 2026, signals growing international trust in the economic measures guided by President Dr Mohamed Muizzu to build fiscal stability.
Mohamed Saeed, the Minister of Economic Development, Transport and Trade, praised the president's resolve in managing severe fiscal challenges and unsustainable debt inherited from the previous administration prior to November 2023. "Fitch’s rating upgrade is a strong indication of renewed confidence in the Maldives’ economic trajectory and reflects the impact of steady and responsible leadership during a particularly challenging period," the economic minister said in a post to X.