Bank of Maldives (BML) has announced that after acquiring SDFC, it will now operate as an Islamic Finance Institute based on Sharia principles. The Cabinet of Ministers has decided to sell the government’s shares in SME Development Finance Corporation (SDFC) to BML. BML states that this government decision will increase public financial participation and enhance the self-sufficiency of the Maldivian economy.
The government has noted that since providing loans to small and medium enterprises is something the government wishes to continue without interruption, selling SDFC’s shares to Bank of Maldives will ensure that small and medium enterprises continuously receive loans through the bank’s financial capability. BML stated that with this government decision, SDFC will provide Islamic financing services to micro, small, and medium enterprises (MSMEs) in the Maldives, utilizing the most modern technology.
Key sectors that BML will provide financing through SDFC:
• Start-up businesses
• Women-led businesses
• Fishermen
• Farmers and agricultural businesses
• Trade and e-commerce businesses
BML’s CEO Mohamed Shareef stated that the bank will provide accessible and convenient financing solutions for businesses in these sectors through SDFC. Shareef also mentioned that this includes various types of products designed to accelerate the growth of businesses with the robust support of the largest bank in the Maldives.
BML stated that the objective of its acquisition of SDFC is to pave the way for digital transformation in MSME banking in the Maldives by leveraging the bank’s strong financial position, extensive network, and advanced digital banking experience. BML also noted that in addition to providing financial assistance and increasing financial literacy in the MSME sectors, SDFC will offer services with special financial solutions such as a digital lending platform and a digital marketplace.
Bank of Maldives aims to disburse MVR 500 million in financing through this subsidiary within the first year. Furthermore, to support community development and sustainable business growth, MVR 300 million will be invested over three years through the Maldivian Islamic Social Financing Initiative (MISFI). BML has stated that further details regarding SDFC’s operations and governance will be disclosed in the future.
