The Maldives has signed a USD 1.5 billion framework agreement with the International Islamic Trade Finance Corporation (ITFC) to finance public and private sector activities, including essential imports, exports and business financing.
The agreement was signed on Sunday by Finance and Public Enterprises Minister Hassan Zareer and ITFC Chief Executive Officer Eng. Adeeb Yousuf Al-Aama, marking a significant expansion of the Maldives’ longstanding financing relationship with the institution.
Under the framework, financing will be made available for the import and export of essential commodities, operations of state-owned enterprises and support for small and medium-sized enterprises.
Eligible private companies will also be able to access financing through local banks, creating a channel for ITFC resources to reach businesses beyond the public sector.
The framework goes beyond direct trade financing and includes technical assistance and advisory services aimed at improving the country’s trade capacity and supporting priorities identified by the government.
Financing to support essential imports and businesses
Access to trade finance is particularly important for the Maldives because of the country’s heavy dependence on imported goods.
A large share of essential commodities consumed domestically, including food, fuel, medicines, construction materials and other supplies, must be sourced from overseas. This creates substantial financing and foreign currency requirements for both the government and private businesses.
The new ITFC framework is intended to provide additional financing mechanisms for such trade while also supporting exports and private sector activity.
Including SMEs and eligible private businesses within the framework could also broaden access to trade financing for companies that may otherwise face difficulties securing funding for imports, exports or expansion.
ITFC regularly works with financial institutions in member countries to extend financing to private businesses and SMEs, alongside its financing of strategic commodities and public sector requirements.
The corporation is the trade finance and trade development arm of the Islamic Development Bank Group and focuses on promoting trade among member countries of the Organisation of Islamic Cooperation.
Since its establishment in 2008, ITFC has approved more than USD 96 billion in trade financing globally, including USD 9.35 billion during 2025.
Agreement follows talks with President Muizzu
The signing coincided with a visit to the Maldives by ITFC CEO Adeeb Yousuf Al-Aama, who also met President Dr Mohamed Muizzu at Mulee’aage on Sunday.
During the meeting, the President and ITFC chief discussed economic cooperation, trade development, infrastructure and the Maldives’ broader development priorities.
Both sides also expressed their commitment to further strengthening the relationship between the Maldives and ITFC.
The Maldives’ relationship with ITFC and the wider Islamic Development Bank Group extends back more than two decades.
The country first received trade-related assistance through the IsDB Group following the 2004 Indian Ocean tsunami, with support subsequently expanding into a series of trade financing arrangements.
The latest USD 1.5 billion framework significantly expands the scope for future cooperation by covering government requirements, state-owned companies, SMEs and eligible private businesses while incorporating technical support alongside financing.
The Finance Ministry said activities financed under the framework will be aligned with national priorities, positioning the facility as a broader mechanism to support trade and economic activity rather than financing a single project or sector.
