The Maldives government will provide a sovereign guarantee for Bank of Maldives’ (BML) $300 million sukuk to fund northern resort development.
This move raises the state’s guaranteed debt target to 15 percent of GDP. The initiative aims to boost tourism, expand the banking sector, and address dollar liquidity challenges without funding the state budget.
The sukuk is expected to support the development of tourism infrastructure in northern atolls, where several projects have faced financing constraints. By providing a guarantee, the government is seeking to improve the terms available to BML and encourage investment in the sector.
The northern region has been a focus of recent tourism expansion efforts. Officials have said the guarantee will help mobilise private capital for projects that can increase bed capacity and generate foreign exchange.
The arrangement does not involve a direct budgetary allocation. Instead, it creates a contingent liability for the state should BML be unable to meet its obligations under the sukuk.
Details of the specific resorts or projects to be financed have not been fully disclosed. The guarantee is part of broader efforts to manage external financing needs and support economic recovery in the tourism sector.
