Maldives Signs US$1.5 Billion Trade-Finance Framework

The Maldives has signed a five-year framework agreement with the International Islamic Trade Finance Corporation to mobilise up to US$1.5 billion in trade financing between 2026 and 2031.

The joint announcement by ITFC and the Finance Ministry is dated 6 September. The ministry published it on 7 September.

Finance Minister Hassan Zareer and ITFC chief executive Adeeb Yousuf Al-Aama signed the agreement in Malé during the latter's official visit. ITFC is part of the Islamic Development Bank Group.

The framework covers financing for essential and strategic commodity imports, mainly through state-owned companies. It also provides for financing lines to local banks serving small and medium-sized businesses and the private sector.

The US$1.5 billion is the amount the institution says it will seek to mobilise over the agreement period. The announcement does not report a single disbursement of that amount.

The parties will also explore technical assistance and advisory work related to trade capacity and access to markets.

Earlier financing relationship

The new framework follows an agreement signed in 2019 that ran to 2024. ITFC says it approved US$1.7 billion for the Maldives during that earlier period.

Since beginning operations in 2008, the institution says it has approved more than US$3.3 billion for the Maldives. The financing has covered petroleum, food, medicine, medical equipment and construction materials, alongside private-sector activity.

Zareer said the relationship included a revolving trade-finance facility for State Trading Organisation dating from 2017. He described it as support for bulk purchases of essential commodities.

The ITFC chief executive also met President Mohamed Muizzu at Mulee'aage on 6 September. Their discussions covered economic cooperation, trade, infrastructure and development priorities, according to the President's Office.

During the visit, Al-Aama met Maldives Monetary Authority Governor Ahmed Munawar and STO chief executive and managing director Shimad Ibrahim, as well as Finance Ministry officials.

The joint announcement identifies both state commodity imports and financing through domestic banks as areas covered by the new agreement. It does not publish individual borrower allocations or a schedule of drawdowns.