The number of international partners willing to support development projects in the Maldives has increased ten fold following the repayment of a major sukuk, Chief Spokesperson at the President’s Office, Mohamed Hussain Shareef, has said.
The government settled the USD 500 million sukuk—issued in 2021—on April 2, making the payment six days ahead of schedule. The total repayment stood at USD 524.68 million, including USD 24.68 million in interest.
Speaking on PSM News’ “Raajje Miadhu” program , Shareef noted that despite predictions of potential bankruptcy, the government successfully cleared the debt without incurring additional borrowing. He said the repayment was made using funds from the Sovereign Development Fund (SDF).
Shareef highlighted that the sukuk was linked to banks in the United Arab Emirates (UAE), adding that the positive impact of the repayment would become evident in the near term. Drawing on his experience as a former ambassador to the UAE, he said investor confidence typically strengthens quickly in such circumstances, with several UAE-based funds now expected to collaborate on development initiatives.
Describing the repayment as a key milestone, Shareef said it had reshaped international perceptions of the Maldives, particularly in terms of governance, economic stability and future prospects. He added that this shift would pave the way for accelerated development efforts.
He further stated that the government is pursuing a clear development agenda, with tangible improvements expected within the next two and a half years. According to Shareef, projects will be delivered more efficiently, while broader economic conditions—including the cost of living, commodity prices and household expenses—are also expected to improve.
Shareef also emphasized that President Dr Mohamed Muizzu is governing in accordance with the will of the people.
The sukuk was originally issued by the previous administration to refinance a USD 250 million “sunny side” bond. Since assuming office, the current government has introduced measures to ease debt pressures, including building reserves outside the SDF and revising airport development fees.
Following the repayment, the government says its immediate priority is to ensure the uninterrupted supply of essential services and goods.
