The Kuwait Fund for Arab Economic Development (KFAED) has decided to sharply increase the financial assistance it provides for development projects in the Maldives.
From 2027, the annual country limit set for the Maldives will rise from USD 10 million to USD 40 million.
The decision was announced by the Fund's Acting Director General, Rashaid A. Al-Bader, at an official meeting held at the Ministry of Finance after the signing of the agreement to develop the Thaa Atoll Hospital. He said the limit was raised in response to requests made by Finance Minister Hassan Zareer on the sidelines of the annual meeting of the Asian Infrastructure Investment Bank (AIIB).
Al-Bader also said that discussions would now begin on financing the Thilafushi port development project, one of the largest projects planned for next year, after Minister Zareer asked the Fund to take part in it.
The first agreement between the Maldives and the Kuwait Fund was signed in 1976. Over the past 50 years, the Fund has provided 14 loans worth USD 185 million for the country's development, along with USD 5.7 million in grants and technical assistance.
The agreement to establish the Thaa Atoll Hospital in Veymandoo was signed under the existing USD 10 million country limit. It is the 15th loan the Kuwait Fund has extended to the Maldives and the first time the Fund has invested in the country's health sector. The ministry said the Kuwait Fund's support would continue for the sectors given the highest priority in the Maldives' development.
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