The number of parties willing to support development projects in the Maldives has increased tenfold following the repayment of a major sukuk, according to the Chief Spokesperson at the President’s Office, Mohamed Hussain Shareef.
The government repaid the USD 500 million sukuk, issued in 2021, on 2 April.
Speaking on PSM News’ “Raajje Miadhu” programme, Spokesperson Shareef said that although some had predicted the Maldives would face bankruptcy, the government had ensured this did not happen. He said the debt was cleared without taking on additional borrowing, using funds from the Sovereign Development Fund (SDF).
He noted that the sukuk was linked to banks in the United Arab Emirates (UAE) and said the benefits of repayment would become evident soon. Drawing on his experience as ambassador to the UAE, he said such outcomes can be seen quickly. He added that various UAE funds were now expected to collaborate on development projects, with a significant increase in interested partners.
He described the repayment as an important milestone, saying it had changed how the Maldives is viewed internationally, including perceptions of its development, governance and future prospects. He added that further progress in development efforts would follow.
Speksperson Shareef said the government was working with a clear vision and that tangible results would be visible to the public within the next two and a half years. He said development projects would be completed more efficiently and that overall conditions, including the cost of living, prices of goods and household expenses were expected to improve.
He also stated that President Dr Mohamed Muizzu was governing in line with the will of the people.
The total repayment amounted to USD 524.68 million, including USD 24.68 million in interest. The payment was made six days ahead of schedule. The sukuk had originally been issued by the previous administration to repay a USD 250 million “sunny side” bond. Since taking office, the current government has introduced measures aimed at reducing the economic burden of debt, including building reserves outside the SDF and revising airport development fees.
The government says its priority following the repayment is to ensure the uninterrupted provision of essential services and goods.