Maldives and ITFC Sign Landmark USD 1.5 Billion Financing Framework to Boost Trade and Essential Imports

The government and the International Islamic Trade Finance Corporation (ITFC) have officially signed a major USD 1.5 billion financing framework agreement aimed at strengthening trade, securing essential imports, and empowering private sector growth over the next five years.

The agreement was finalised during a special signing ceremony at the Ministry of Finance and Public Enterprises in Male’, held as part of an official visit to the country by ITFC Chief Executive Officer, Engineer Adeeb Y. Al Aama. Finance Minister Hassan Zareer signed the framework on behalf of the Maldivian government.

Effective through 2031, the five-year trade financing facility will channel capital through local Maldivian banks to meet the financing needs of both state-owned enterprises (SOEs) and eligible private enterprises. According to the Ministry of Finance, the framework will secure critical funding for importing food, medical supplies, and other essential commodities while simultaneously providing resources to expand the export trade of Maldivian products, particularly within the fisheries sector.

In addition to direct trade financing, the Ministry highlighted that the agreement encompasses targeted capacity building, advisory services, and trade-related technical assistance designed to help Maldivian goods compete in international markets and support small and medium-sized enterprises (SMEs).

Speaking at the ceremony, Finance Minister Hassan Zareer commended the ITFC’s evolving role in the nation’s economic development. He noted that while ITFC support originally focused primarily on the energy sector, the partnership has steadily expanded into crucial developmental areas, including food security, healthcare, fisheries, and SME support.

Minister Zareer drew special attention to the ongoing trade finance facility provided to the State Trading Organization (STO) since 2017, describing it as a vital pillar of national stability that ensures uninterrupted funding for essential imports and guarantees the sustainable execution of state trade operations.

ITFC CEO Engineer Engineer Adeeb Y. Al Aama emphasised that the new accord reflects years of deep mutual trust and will further solidify the corporation's partnership with Maldivian financial institutions and the private sector.

During his official visit, Engineer Adeeb Y. Al Aama also held high-level discussions with President Dr Mohamed Muizzu, Finance Minister Zareer, and Maldives Monetary Authority Governor Ahmed Munawwar to explore broader avenues for bilateral economic cooperation.

The new agreement succeeds the previous 2019–2024 framework, which saw actual utilisation reach USD 1.7 billion—exceeding its initial USD 1.5 billion target due to high demand and active deployment. Since the commencement of their partnership in 2008, the ITFC has extended a cumulative total of USD 3.3 billion in financial assistance to the Maldives.