Maldives, ITFC Sign US$1.5 Billion Framework to Boost Trade Financing

The Government of Maldives and the International Islamic Trade Finance Corporation (ITFC) have signed a new five-year Framework Agreement that will mobilise up to US$1.5 billion to support public- and private-sector trade operations in the Maldives.

The agreement, covering 2026 to 2031, was signed at the Ministry of Finance and Public Enterprises in Malé during an official visit by ITFC Chief Executive Officer Eng. Adeeb Yousuf Al-Aama.

Minister of Finance and Public Enterprises and Islamic Development Bank Governor for the Maldives Hassan Zareer signed the agreement on behalf of the Maldivian government.

Under the framework, financing will support the import and export of essential and strategic commodities, as well as trade operations of state-owned enterprises and eligible private-sector companies.

The agreement will also facilitate financing lines through Maldivian financial institutions, expanding access to trade finance for small and medium-sized enterprises (SMEs) and other private businesses.

Beyond financing, the Maldives and ITFC will explore trade-related technical assistance, advisory services and initiatives aimed at strengthening the country’s trade capacity and improving access to international markets. These initiatives will be aligned with the Maldives’ national development priorities.

Minister Zareer said ITFC’s partnership with the Maldives had expanded significantly since the corporation began operations, evolving from support focused primarily on the country’s energy requirements into a broader trade and development partnership.

He said the partnership currently supports the import of staple foods and medical supplies while also contributing to key economic sectors, including fisheries and SMEs.

Zareer highlighted the rollover trade finance facility provided to State Trading Organization PLC (STO) since 2017 as a key component of the partnership.

“This mechanism continues to provide vital liquidity support, ensuring uninterrupted bulk procurement of essential commodities and guaranteeing operational predictability for state trade,” Zareer said.

He also described ITFC as one of the Maldives’ most dependable development partners during periods of volatility in global markets.

ITFC CEO Eng. Adeeb Al-Aama said the new framework builds on years of cooperation and will further expand collaboration with Maldivian financial institutions and the private sector.

“Through the agreement, ITFC will work with the government and its partners to mobilise financing for essential trade while expanding our cooperation with the private sector and financial institutions,” he said.

The new framework follows the first five-year Framework Agreement between the Maldives and ITFC, signed in 2019 and concluded in October 2024. During that period, ITFC approved US$1.7 billion in financing for the Maldives and disbursed US$1.5 billion.

Since beginning operations in the Maldives in 2008, ITFC has approved more than US$3.3 billion in financing for the country. The funding has supported imports of petroleum products, food commodities, medical supplies and construction materials, alongside private-sector trade operations.

During his visit, Al-Aama met with President Dr Mohamed Muizzu, Minister Zareer and Maldives Monetary Authority Governor Ahmed Munawar. Discussions focused on strengthening trade finance cooperation and supporting the Maldives’ wider economic priorities.

The ITFC delegation also met representatives of STO, its principal financing partner in the Maldives, and visited STO’s perishable and staple-food warehouses in Malé and the Funadhoo Oil Terminal.

The visits provided the delegation with an opportunity to review operations linked to commodities financed through ITFC facilities and assess the continued role of trade finance in ensuring the country’s access to essential goods.