SME Digital, a dedicated subsidiary of Bank of Maldives (BML), doubled its financing limit for tourism-related projects to USD 648,508 specifically to empower small and medium enterprises (SMEs) within the tourism industry, the financing institution has said.
Managing Director Badruddeen Hassan detailed the critical need for this change, explaining that the previous USD 324,254 cap had proven insufficient for launching a viable guesthouse business. He noted that this limitation often forced entrepreneurs to make cost-cutting compromises during the initial phases. However, due to inevitable cost escalations, many projects were subsequently halted and left unfinished, failing to reach completion due to a lack of adequate financing.
"We believe that such projects can only be implemented with adequate finance," he said.
Badruddeen emphasised that the increased limit of USD 648,508 is designed to provide businesses with the necessary capital from the outset, ensuring they have a stronger foundation and a higher likelihood of successful implementation and completion. This initiative is part of a broader strategy of empowerment and encouragement for local entrepreneurs.
Established seven years ago as SME Development Finance Corporation (SDFC) before rebranding as SME Digital, the company has become a cornerstone of financial support for Maldivian SMEs. It now serves over 4,000 customers with a team of more than 100 employees.
Alongside this landmark financing increase, SME Digital is also undertaking a comprehensive operational strengthening, which includes a structural transformation and the conversion of all its financial facilities to be fully compliant with Islamic Sharia principles.
Badruddeen confirmed that based on performance and market factors, financing limits for other sectors may also see future increases.