Maldives Secures Deal to Raise USD 100 Million to Offset Reserve Pressures Over Rising Global Oil Prices

In a strategic move to bolster the nation’s financial resilience amid the escalating ripple effects of the ongoing conflict in the Middle East, the government is finalising plans to raise an additional USD 100 million for its state reserves. 

The Minister of Finance and Planning, Moosa Zameer announced the development during a press conference held by the Special Cabinet Committee, set up in response to ongoing Middle East and Gulf tensions, underscoring efforts to shield the economy from mounting external shocks. 

With oil prices spiking due to regional instability and a noticeable decline in tourist arrivals—key source of national revenue—the government faces dual pressures of meeting a USD 500 million sukuk repayment due next month and covering rising operational expenditures. 

Minister Zameer confirmed that, in close coordination with Maldives Monetary Authority (MMA) Governor Ahmed Munawwar, the government has reached a preliminary agreement with two international multilateral agencies to secure the emergency financing. 

While the specific terms, including the interest rate and duration of the facility, remain undisclosed, Zameer described the funding as a targeted mechanism to finance the surge in fuel import costs and stabilise foreign exchange reserves. 

He revealed that a formal request seeking presidential approval has been submitted, emphasising that the sukuk repayment remains on track, in line with President Dr Mohamed Muizzu’s assurances last week. 

“We have arranged for the payment, and there is no change. Even if we had to pay the sukuk tomorrow, the funds are in place,” he assured.

Addressing growing public concern, the finance minister acknowledged the uncertainty brought by global conflict but urged calm. The government also signaled plans to curb non-essential foreign exchange spending and review state expenditures, though specific austerity measures were not detailed.