Govt Injects MVR 163 Million to Shore Up Businesses Amid Middle East Conflict

The government has disbursed MVR 163 million to local businesses through the banking sector since March, in a move designed to mitigate the economic fallout from the ongoing conflict in the Middle East. 

The announcement was made by Finance Minister Moosa Zameer during a news conference held by the ministerial crisis committee.

Minister Zameer detailed the government's multi-pronged strategy to address the immediate difficulties faced by private businesses, highlighting that the disruptions caused by the war have created pressing challenges for various sectors. 

“In offering financial relief, we are looking at releasing funds for additional working capital and other existing financing needs in consultation with the Bank of Maldives and also with other banks to address the immediate difficulties faced by businesses,” he explained.

The MVR 163 million injection forms part of a broader, robust economic support package. The Minister revealed that substantial funds had already been channeled into key industries earlier this year, with MVR 540 million disbursed to the vital tourism sector and a further MVR 940 million to construction companies in the first quarter alone.

Emphasising the administration's proactive stance, Zameer noted that the government is giving special priority to make it as easy as painless as possible for businesses during the regional conflict. This includes ensuring easy access to US dollars for importers and other foreign transactions, a critical measure for the import-dependent island nation.

Providing evidence of this escalated support, the Minister presented a stark year-on-year comparison. The amount disbursed to banks in Q1 of 2026 was much higher than the same period in 2025. Dollar sales, crucial for international trade, skyrocketed from an average of USD 5.6 million last year to USD 106 million this year. Additionally, allocations for credit and debit card settlement processing were increased from USD 26 million to USD 40 million.

“We are doing everything we can to intervene on behalf of the government through our National Bank,” signaling a continued, aggressive approach to stabilising the economy amidst global uncertainty.