Loan Agreement

USD 50 million loan agreement signed with Saudi

Maldivian government has signed an agreement with the Kingdom of Saudi Arabia for a loan of USD 50 million from the Saudi Fund for Development for various government projects and to develop Maldivian fisheries sector.

President Ibrahim Mohamed Solih announced on 23 June that the loan was ready from Saudi Arabia. And USD 50 million would be given from Abu Dhabi Budget Support.

The loan agreement with Saudi was signed by the Minister of Foreign Affairs, Abdulla Shahid.

The Director of Communications at the Foreign Ministry, Miuwan Mohamed told One Online today that the loan comes with a two percent interest rate and needs to be paid back with 25 years after a five-year grace period.

Speaking at the loan agreement signing, Minister Shahid said that loan will facilitate USD 25 million to housing and USD 25 million to the fishing sector for development projects. The funds are going to house 2,700 people under the Social Housing Project along with benefits to 25,000 people in the fishing and agricultural sector.

Minister Shahid said that the loan has come at a time the Maldivian economy is need of foreign aid to recover from the impact of COVID-19. And the Saudi government has always assisted in the major development projects in the Maldives such as the development of Velana International Airport and the second phase of the Hulhumale’ development project.

Foreign Minister also send a special gratitude to the Saudi King, Salman bin Abdulaziz Al Saud and the Prince Mohammed bin Salman bin Abdulaziz on behalf of President Ibrahim Mohamed Solih and the Maldivian people.