The Bank of Maldives (BML) has announced that the SME Development Finance Corporation (SDFC) will be converted into a fully Shariah-compliant Islamic financial institution following its acquisition by the bank.
The decision follows the government’s approval on Sunday to sell its stake in SDFC to BML. The move came after a comprehensive review conducted by the Ministry of Finance and Planning, based on a proposal submitted by BML. According to the government, the ownership transfer aims to ensure continuous and reliable loan services for small and medium enterprises (SMEs) by leveraging BML’s financial strength.
BML welcomed the decision, stating it will expand public access to financial services and contribute to the prosperity of the Maldivian economy.
Under the new model, SDFC will operate as an Islamic financial institution, offering products and services aligned with Shariah principles. Integrated into BML’s digital-first framework, the revamped SDFC will serve micro, small, and medium enterprises (MSMEs) with a suite of technologically advanced Islamic financing solutions.
The newly restructured SDFC will focus on several key sectors, including:
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Start-ups and new ventures
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Women-led businesses
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Fisheries
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Agriculture and farming
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Trade and e-commerce enterprises
BML’s CEO Mohamed Shareef said the acquisition strengthens the bank’s ability to provide accessible and affordable Islamic financing tailored to these sectors. He added that SDFC will roll out diverse financial products aimed at accelerating business growth, supported by BML’s nationwide presence and digital capabilities.
The bank further stated that this acquisition is part of its broader strategy to digitally transform MSME banking in the Maldives. Through SDFC, BML plans to introduce specialised financial services, such as a digital lending platform and a digital marketplace, while also promoting financial literacy and community-focused support.
BML has committed to providing USD 32.4 million in financing via SDFC within the first year of operations. Additionally, over a three-year period, it will invest USD 19.4 million through the Maldivian Islamic Social Financing Initiative (MISFI) to support sustainable development and inclusive business growth.
More information on the operational structure, governance, and launch timeline of the rebranded SDFC is expected to be announced in the coming weeks.