The USD 300 million sukuk being arranged by Bank of Maldives (BML) with a Government guarantee will be used to support tourism expansion and broader economic growth rather than Government budget financing, Minister of Finance and Public Enterprises Moosa Zameer has said.

Minister Zameer made the remarks in a post on X following Fitch Ratings' decision to upgrade the Maldives' sovereign credit rating. He said the upgrade reflects improving economic and financial conditions in the country following the repayment of the USD 500 million sovereign sukuk in April.

Commenting on the proposed USD 300 million sukuk issuance by BML, minister Zameer reiterated that the financing is not intended to support government cash flow or budget expenditure. Instead, he said the Government and the bank are working together to channel investment into projects that will further strengthen economic growth.

The minister said the initiative is aimed at expanding tourism development, particularly in the northern and southern regions of the Maldives, with the objective of broadening the country's economic base and increasing government revenue in the coming years.

Minister Zameer said the Administration remains committed to maintaining financial stability and restoring debt sustainability over the medium term. He added that the Government's economic strategy focuses on encouraging private sector investment, creating better-paying jobs and supporting long-term growth.

He also said Fitch's decision to raise the Maldives' credit rating demonstrates growing confidence in the fiscal reforms and economic policies being implemented by the Government.