The Maldivian government has signed a USD 9.7 million (MVR 150 million) loan agreement with the Kuwait Fund for Arab Economic Development (KFAED) to construct a modern 50-bed hospital in Veymandoo, Thaa Atoll, as part of efforts to expand healthcare services outside the capital.
The agreement was signed on Thursday by Minister of Finance and Public Enterprises Hassan Zareer and the Kuwait Fund’s Acting Director-General, Rashed Ali Al-Bader.
According to the Ministry of Finance, the financing will support the development of Thaa Atoll Hospital, providing improved medical facilities and strengthening access to healthcare for residents across the atoll.
The agreement marks the Kuwait Fund’s first investment in the Maldives’ healthcare sector and represents the 15th loan extended to the country by the Kuwaiti development financing institution.
Alongside the hospital financing, KFAED announced that it would increase its annual lending limit for the Maldives from USD 10 million to USD 40 million beginning in 2027, significantly expanding the financing available for future development projects.
The fund also expressed interest in supporting the Thilafushi Port Development Project, opening the possibility of further cooperation in the country’s transport and logistics infrastructure.
The hospital agreement follows discussions held earlier this week between Kuwait Fund representatives and Minister of Health Dr Geela Ali.
During Monday’s meeting, the two sides reviewed plans for the proposed 50-bed hospital and explored opportunities to strengthen cooperation in developing healthcare infrastructure and improving medical services in the Maldives.
The Ministry of Health said the discussions focused on expanding access to quality healthcare and identifying areas where financial and technical assistance could support the country’s healthcare development priorities.
The planned hospital in Veymandoo is among the healthcare infrastructure improvements pledged by President Dr Mohamed Muizzu during his visit to the island in September 2025.
During the visit, the President assured residents that the government would pursue the necessary development of Thaa Atoll Hospital, while introducing interim improvements to existing services ahead of the construction of the new facility.
Muizzu also reiterated his commitment to reducing the burden faced by residents who are forced to travel considerable distances and incur substantial expenses to obtain medical treatment.
He described the dependence on distant healthcare facilities as a hardship that must be addressed by making essential medical services more accessible within island communities.
Healthcare accessibility remains a longstanding challenge in the Maldives, where the geographical separation of inhabited islands often requires patients to travel to regional hospitals, Malé or overseas for specialised treatment.
For residents of the atolls, such journeys can involve significant transportation and accommodation expenses, particularly when patients require repeated consultations or prolonged medical care.
The development of a 50-bed hospital in Veymandoo is intended to strengthen healthcare capacity in Thaa Atoll and reduce the need for residents to seek treatment elsewhere for services that can be provided locally.
The project comes as the government seeks to expand specialist healthcare services and improve hospital infrastructure across the country.
Under the proposed 2027 state budget, MVR 10.2 billion has been allocated to the healthcare sector, including initiatives aimed at strengthening regional medical facilities and improving access to specialised treatment.
The government has also announced plans to establish the Maldives Tertiary Hospitals Group, bringing together existing tertiary hospitals and regional facilities being upgraded to tertiary standards.
The Kuwait Fund has maintained a longstanding development financing relationship with the Maldives, supporting infrastructure and other public development initiatives through concessional lending.
Its entry into the healthcare sector marks a new area of cooperation between the two countries, while the decision to quadruple the annual lending limit signals expanded opportunities for development financing.
The latest agreement is expected to support the government’s efforts to improve medical infrastructure in Thaa Atoll and provide residents with greater access to healthcare closer to their communities.
