The Capital Market Development Authority (CMDA) has stated that businesses have raised 450 million rufiyaa through the capital market over the past two years. CMDA revealed this information while speaking about the organization’s work on PSM’s “Raajje Miadu” program. Mohamed Hussain Maniku, CEO of CMDA, which regulates the Maldivian securities market under the Maldives Securities Act, said that businesses typically use banks to raise funds. However, he noted that this opportunity is now also available to private businesses through the capital market.
Banks usually provide loans to businesses on a mortgage basis. However, to raise funds through the capital market, a good business concept is needed. Along with this, if there is a prospectus or securities statement prepared according to CMDA standards, the business can attract investors, said CMDA CEO Mohamed Hussain Maniku. “There are many investors on the capital market side. Private companies are now raising funds. It’s also available for small businesses. Come with a business concept. You need to prepare a prospectus or share statement for it. If that statement meets certain standards, when you go before the public, they will provide funding,” said the CMDA CEO.
CMDA highlighted that there are opportunities for companies to find investors for their businesses, noting that this opportunity is also available for medium-sized enterprises. Additionally, CMDA has pointed out that while there is a second board for small businesses to enter the stock market, private businesses have the opportunity to attract investors using instruments such as sukuk. “Looking at the private segment, 8 or 9 companies have sold shares and raised equity. In addition to these companies, approximately 450 million rufiyaa was raised in 2023 and 2024. This is the amount raised from this side, excluding banks. So there is an opportunity,” said CEO Mohamed Hussain Maniku.
CMDA stated that ifd that if businesses raise funds in this manner, it will strengthen corporate governance. When starting a business, while providing concessions to businesses, in the long term, these businesses will grow in a way that improves their governance and benefits investors. CMDA is the institution established by the Maldives Securities Act to regulate the capital market in the Maldives. Any investment opportunity can only be opened to the public in the Maldives with CMDA approval.
