Economic minister: Rollout of development bank progressing ‘on schedule’

The rollout of the Development Bank of Maldives (DBM) is progressing on schedule, insisted Economic Minister Mohamed Saeed on Sunday, as he rejected criticism regarding the delay in the operationalization of the bank.

The establishment of a development bank in Maldives was one of President Dr. Mohamed Muizzu’s electoral pledges. He used the powers vested in him under the Companies Act to form the Development Bank of Maldives Limited on May 16, 2024. The Economic Ministry applied with the central bank, Maldives Monetary Authority (MMA) for a license to operate DBM on July 28, and the license was granted two months later on October 13.

In a post on X on Sunday, Saeed said that the rollout of the DBM is structured into three phases, “with the first phase - the institutional setup, which is progressing on schedule.”

Saeed said that DBM’s business model prioritizes institutional investors and large-scale infrastructure projects, with plans to introduce retail services at a later phase.

He said that the phased approach is aligned with broader efforts to stabilize and strengthen the Maldivian economy.

“Not just the DBM but the stability is now brought in, overcoming the mess we were inherited from an irresponsible government which lacked complete disciple in managing public finance,” he added.

Development banks are financial institutions with the focus of introducing new businesses, industrial activities, and other economic initiatives in countries.

The banks are primary lenders for new ventures with loan facilities to setup businesses and activities as well.

President Muizzu has previously said that the biggest purpose of the DBM is to diversify and expand the Maldivian economy.

He said that once the DBM begins operations, it will become a hub for investment in economic sectors including tourism, real estate, housing, renewable energy, and more.

President Muizzu made key appointments to the DBM in August 2024. Aruni Goonetilleke, a Singaporean, was appointed as the Chairperson and Noel Gregor Paterson-Jones, a British national, was appointed as the CEO.

Other members appointed to the DBM’s board includes:

• Ahmed Ali, a Maldivian;
• Saeed Abdul Nasir Bin Saeed Hassan Al-Junaid, a Singaporean; and
• Robert Daniel Kant, a Briton.

According to the President’s Office, the institution was formed in alignment with the government’s policies, including the funding of infrastructure projects, investing in sustainable economic and social development, addressing the difficulties associated with financing PSIP projects through syndicated financing, and fostering a greater interest in maintaining foreign exchange within the nation's banking system.