ITFC has signed a five-year framework agreement with the Maldives Government to mobilise up to $1.5 billion for trade financing operations, essential commodity imports and private-sector support between 2026 and 2031.
ITFC will support trade financing and private-sector activity in Maldives through 2031
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a new five-year Framework Agreement with the Government of the Republic of Maldives, creating a financing framework worth up to $1.5 billion.
The agreement will support trade financing operations in the Maldives between 2026 and 2031, with funding expected to cover essential and strategic commodity imports as well as financing for local businesses through financial institutions.
The agreement was signed at the Ministry of Finance and Public Enterprises in Malé by ITFC Chief Executive Officer Eng. Adeeb Yousuf Al-Aama and Maldives Minister of Finance and Public Enterprises and IsDB Governor for the Maldives Hassan Zareer.
The signing took place during the ITFC chief executive’s official visit to the country, which also included discussions with senior Maldivian officials on strengthening economic cooperation and supporting national development priorities.
Under the framework, financing will be provided primarily for the importation of essential and strategic commodities through state-owned enterprises. The arrangement will also include lines of financing for local banks, allowing them to support small and medium-sized enterprises and other private-sector businesses.
The agreement therefore extends beyond government-related commodity procurement and creates a financing channel aimed at strengthening access to credit for businesses. SMEs are an important component of the Maldivian economy, particularly in sectors connected to trade and domestic economic activity.
The framework also provides for the exploration of trade-related technical assistance and advisory services. These initiatives are intended to strengthen trade capacity and improve market access in line with the country’s development agenda.
Minister Hassan Zareer said the relationship with ITFC had developed from support for the Maldives’ energy requirements into a broader partnership covering staple foods, medical supplies, fisheries and SMEs. He also highlighted an ongoing revolving trade finance facility provided to State Trading Organisation (STO) since 2017.
According to the minister, that facility has helped provide liquidity for bulk procurement of essential commodities and supported continuity in state trading operations, particularly during periods of global market volatility.
ITFC CEO Al-Aama said the new framework builds on a partnership developed over many years. He said the corporation would work with the Maldivian Government and its partners to mobilise financing for essential commodities while supporting the private sector through local financial institutions.
The latest agreement follows the first five-year Framework Agreement between ITFC and the Maldives, which was signed in 2019 and concluded in 2024. During that period, ITFC approved $1.7 billion in financing for the country.
The scale of the latest agreement reflects the continuing role of ITFC in supporting the Maldives’ external trade requirements. Since its establishment in 2008, the corporation has approved more than $3.3 billion in financing for the Maldives.
The financing approved since 2008 has supported imports of petroleum products, staple food, medicines, medical equipment and construction materials, in addition to financing for private-sector activities.
The latest framework is expected to provide a structured basis for future trade financing operations over the five-year period. Its scope allows the parties to respond to financing requirements associated with essential imports while also exploring opportunities to strengthen trade-related capacity.
During his visit, Al-Aama also held discussions with Minister Zareer and Maldives Monetary Authority Governor Ahmed Munawar. The meetings focused on strengthening cooperation and identifying additional areas where support could be provided for the country’s economic priorities.
He also met State Trading Organisation Managing Director and CEO Shimad Ibrahim and other senior government officials.
For the Maldives, the agreement provides a multi-year framework for mobilising financing across critical import and private-sector requirements. For ITFC, it extends an established relationship with the country and provides a platform for further cooperation in trade development.
The agreement also creates scope for future advisory and technical assistance initiatives alongside financing. This could support efforts to improve trade capacity and market access while complementing the country’s broader economic development objectives.
With the framework covering the period from 2026 to 2031, implementation will depend on individual financing operations and cooperation between ITFC, the Maldives Government, state-owned entities and local financial institutions. The agreement nevertheless establishes a significant financing framework for the country’s trade and economic activities over the coming five years.