The Government of the Maldives and the Kuwait Fund for Arab Economic Development (KFAED) have signed a KWD 3 million (USD 9.7 million) loan agreement to construct a modern 50-bed atoll hospital in Thaa Veymandoo, while the fund confirmed it will quadruple the Maldives' annual borrowing limit to USD 40 million starting in 2027.
According to Sun Online, Minister of Finance and Public Enterprises Hassan Zareer and KFAED Acting Director General Rashid Al-Bader signed the financing pact at a ceremony at the Ministry of Finance in Malé on Wednesday.
In an official statement cited by Sun Online, the Ministry of Finance highlighted the broader expansion of bilateral development financing:
"During a courtesy call following the signing, KFAED confirmed its decision to increase the Maldives' annual country loan limit from USD 10 million to USD 40 million starting in 2027, following the discussion on the sideline of the AIIB Annual Meeting 2026, and expressed interest in supporting the Thilafushi port development project."
First Kuwait Fund investment in Maldivian healthcare
Acting Director General Al-Bader noted that the Veymandoo hospital facility marks the 15th loan extended by KFAED to the Maldives since bilateral operations began in 1976, and its first direct investment in the country's public health sector. Over the past five decades, the Kuwait Fund has disbursed 14 loans totalling USD 185 million alongside USD 5.7 million in grants and technical assistance.
As reported by PSM News, Minister of Health Abdulla Nazim Ibrahim also met the KFAED delegation to review plans for expanding specialist paediatric, dialysis, dental, and inpatient care at the new 50-bed Veymandoo facility. Minister Zareer stated that upgrading regional hospitals is vital to ensuring equitable healthcare across the dispersed island nation and invited KFAED to co-finance next year's Thilafushi commercial port project.
