Maldives and the Islamic Development Bank (IsDB) have signed an MoU to establish a Shariah-compliant SME Impact Fund worth MVR 616 million. 

This initiative aims to provide financing opportunities for Maldivian SMEs, supporting their growth and expansion. The Fund will prioritize investments that adhere to strong ESG standards and Shariah principles. 

The collaboration between IsDB, the Maldives Fund Management Corporation (MFMC), and the SME Development Finance Corporation (SDFC) will create a collective investment vehicle. 

With an initial capital injection of USD 40 million from IsDB, the Fund plans to diversify its investments across different sectors and locations, including Halal tourism guesthouses, infrastructure development, and increased lending to SMEs. 

The focus now is on completing due diligence procedures and operationalizing the SME Impact Fund in the coming months, with the goal of strengthening the Maldivian SME sector and fostering economic growth.