The Saudi Fund for Development (SFD) has reaffirmed its enduring partnership with the Maldives by extending a USD 18.61 million loan to support the expansion of Velana International Airport (VIA)—a transformative infrastructure project vital to the country’s economic future.
The agreement was formally signed during a ceremony held at the President’s Office, with Minister of Finance and Treasury Moosa Zameer representing the Maldivian government and Sultan bin Abdulrahman Al-Marshad, Chief Executive Officer of the SFD, signing on behalf of the Saudi institution.
With this additional funding, the Ministry of Finance expressed renewed optimism for the timely completion of the VIA expansion. Officials underscored the project’s potential to yield significant economic dividends by enhancing the Maldives’ global connectivity and increasing the airport’s capacity to handle more tourists and international carriers.
Upon completion, the upgraded VIA is expected to serve as a key enabler for tourism growth—Maldives’ most vital economic sector—while also strengthening ancillary industries such as trade, hospitality, and transportation. The Ministry highlighted that the expanded airport will contribute substantially to the nation’s gross domestic product and reinforce its position as a leading destination in global tourism.
This latest agreement marks another chapter in the Maldives’ long-standing partnership with the SFD, which has invested over USD 470 million across critical sectors including transport, healthcare, housing, and fisheries.
In May 2024, the SFD announced a USD 150 million development package for the Maldives, reflecting its ongoing commitment to national growth. This included USD 100 million for the VIA expansion and an additional USD 50 million earmarked for healthcare infrastructure—specifically, the construction of three modern hospitals aimed at expanding access to quality medical services across the nation.
Established in 1974 by the Kingdom of Saudi Arabia, the Saudi Fund for Development has become a prominent global institution supporting sustainable development in emerging economies. Through concessional loans and strategic grants, the Fund continues to empower partner nations in sectors vital to long-term economic resilience, including infrastructure, health, education, and energy.