The Saudi Fund for Development (SFD) signed two development loan agreements with the Maldives on May 17, 2024, and inaugurated the Hulhmale Island development project, reinforcing Saudi Arabia’s commitment to international cooperation and sustainable development. The agreements, signed in Malé by SFD CEO Sultan bin Abdulrahman Al-Marshad and Maldives Minister of Finance Dr. Mohamed Shafeeq, comprise a $100 million loan for the Velana International Airport development project and a $50 million loan for a health sector development project. The ceremony also marked the partial opening of the Hulhmale Island development project, financed through an $80 million soft loan from the Fund. Saudi Ambassador to the Maldives, Matrek bin Abdullah Al-Ajalin, attended the signing.
Context and Background
These agreements represent a continuation of a long-standing partnership between Saudi Arabia and the Maldives, which dates back to 1978. Since then, the SFD has provided 16 development soft loans totaling over $470 million to support infrastructure, transport, communications, water and sanitation, and health in the Maldives. The new loans bring the total SFD financing to over $550 million, underscoring the Kingdom’s dedication to supporting friendly nations in their development efforts.
Key Details
The Velana International Airport development project includes the construction of an airline lounge building for international and domestic flights, a sea lounge, and an increase in the airport’s capacity to accommodate 7 million passengers annually. The project aims to facilitate passenger movement, improve air cargo services and commercial activities, and create expansion capabilities to reach 15 million passengers annually, ultimately enhancing commercial growth and economic prosperity in the Maldives. This loan adds to five previous loans provided by the Fund since 1978, totaling approximately $225 million.
The health sector development project will establish three hospitals on three islands with a total clinical capacity of 150 beds. It is expected to enhance health services for the Maldives’ residents, limit the spread of diseases and epidemics, and facilitate access to treatment.
The Hulhmale Island development project, which received $80 million in SFD financing, includes construction of a sea canal for boat transportation, four bridges, and two ports, along with beach protection works. The project is anticipated to create 160,000 job opportunities on the island, contributing to social and economic development and supporting vital opportunities for development, knowledge, and capacity building.
Implications and Impact
These projects are expected to have significant economic and social impacts on the Maldives. The airport expansion will boost tourism and trade, while the health projects will improve public health outcomes. The Hulhmale Island project will provide substantial employment opportunities and stimulate economic growth. The agreements also strengthen bilateral relations between Saudi Arabia and the Maldives, reflecting the Kingdom’s role as a global development partner.
Vision 2030 Alignment
These initiatives align with Saudi Arabia’s Vision 2030, which emphasizes international cooperation, economic diversification, and sustainable development. The SFD’s support for infrastructure and health projects in the Maldives exemplifies the Kingdom’s commitment to fostering global partnerships and contributing to the prosperity of developing nations. As Saudi Arabia continues to advance its Vision 2030 goals, such collaborations reinforce its position as a leader in humanitarian and development aid worldwide.
20 Questions
Q1. Who signed the development loan agreements?
A1. SFD CEO Sultan bin Abdulrahman Al-Marshad and Maldives Minister of Finance Dr. Mohamed Shafeeq signed the agreements on behalf of their respective countries.
Q2. When were the agreements signed?
A2. The agreements were signed on May 17, 2024, in Malé, the capital of Maldives, as reported by the Saudi Press Agency.
Q3. What is the total value of the two loan agreements?
A3. The two loan agreements are valued at $100 million for the airport project and $50 million for the health project, totaling $150 million.
Q4. Which airport project will the loan finance?
A4. The loan will finance the Velana International Airport development project, which includes constructing airline lounges, a sea lounge, and expanding capacity.
Q5. What is the health sector development project about?
A5. It involves establishing three hospitals on three islands with a combined capacity of 150 beds to improve healthcare standards in the Maldives.
Q6. What is the Hulhmale Island development project?
A6. It is a project financed by an $80 million soft loan from SFD, including a sea canal, four bridges, and two ports, to boost economic development.
Q7. How many job opportunities is the Hulhmale Island project expected to create?
A7. The project is anticipated to create 160,000 job opportunities on the island, as stated by SFD.
Q8. Who was present at the signing ceremony?
A8. Saudi Ambassador to the Maldives, Matrek bin Abdullah Al-Ajalin, was present at the signing ceremony.
Q9. Since when has the SFD been supporting the Maldives?
A9. The SFD has been supporting the Maldives since 1978, providing development loans for various projects.
Q10. How many loans has the SFD provided to the Maldives in total?
A10. Including these new loans, the SFD has provided 18 development loans totaling over $620 million to the Maldives.
Q11. What is the goal of the Velana International Airport expansion?
A11. The expansion aims to increase capacity to 7 million passengers annually and facilitate future growth to 15 million, boosting trade and tourism.
Q12. How will the health projects benefit the Maldives?
A12. They will enhance health services, limit the spread of diseases, and improve access to treatment for residents.
Q13. What does the Hulhmale Island project include besides bridges and ports?
A13. It includes a sea canal for boat transportation and beach protection works to safeguard the island’s coastline.
Q14. What sectors have the SFD’s previous loans to the Maldives covered?
A14. Previous loans supported transport and communications, water and sanitation, health, and other sectors.
Q15. How does the SFD’s support align with Saudi Vision 2030?
A15. It aligns with Vision 2030’s goals of international cooperation, sustainable development, and strengthening global partnerships.
Q16. What is the capital of the Maldives?
A16. The capital of the Maldives is Malé, where the signing ceremony took place.
Q17. What is the role of the Saudi Fund for Development?
A17. The SFD provides development loans and grants to support projects in developing countries, focusing on infrastructure and social sectors.
Q18. How will the airport project contribute to the Maldives’ economy?
A18. By enhancing passenger and cargo capacity, it will improve air connectivity, commercial activities, and economic growth.
Q19. What is the significance of the partial opening of Hulhmale Island?
A19. It marks progress in the development of the island, which is expected to bring substantial economic and social benefits.
Q20. What are the expected outcomes of these projects for Maldives?
A20. They are expected to improve infrastructure, healthcare, and job opportunities, contributing to long-term prosperity and resilience.
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