MALE, Maldives – The Saudi Fund for Development (SFD) has deepened its investment in the Maldives’ tourism infrastructure by signing a $17 million loan agreement to accelerate completion of the new terminal at Velana International Airport (VIA), the island nation’s primary gateway.
The agreement, formalized during a ceremony at the President’s Office in Male, represents the second financing arrangement within a year for the strategically important project that has faced significant delays.
“This injection of capital serves as a catalyst in our efforts to expedite the terminal’s completion,” said Maldivian Finance Minister Moosa Zameer, who signed the agreement alongside SFD Chief Executive Officer Sultan Abdulrahman Al-Marshad.
The $17 million loan (equivalent to 262 million Maldivian rufiyaa) follows a substantially larger $100 million funding package approved last May, underscoring Saudi Arabia’s expanding economic influence in the Indian Ocean archipelago.
Once completed, the modernized terminal will dramatically increase passenger capacity to seven million travelers annually and expand critical cargo operations, positioning the Maldives to capitalize on its growing tourism sector while diversifying economic activity.
“Since 1978, we have provided loan assistance totaling $242 million specifically for airport development projects in the Maldives,” Al-Marshad noted during the signing ceremony.
“This partnership has evolved into a comprehensive development relationship worth $488 million across 17 different loans.”
The Maldivian government characterizes the VIA expansion as the country’s most significant infrastructure investment, with total Saudi financing for the airport reaching $217 million since the project’s inception in 2016.
The funding comes as Saudi Arabia continues its strategic pivot toward infrastructure development across the Indian Ocean region, leveraging its financial resources to secure long-term partnerships in tourism-dependent economies looking to modernize their transportation networks.
For the Maldives, a nation of 1,192 islands heavily reliant on luxury tourism, the expanded airport represents a crucial component in its economic development strategy as it works to recover from pandemic-related setbacks while preparing for anticipated growth in international arrivals.
