Bank of Maldives (BML) CEO and Managing Director Ibrahim Shareef has stated that the total number of housing units developed under the Maldives Monetary Authority’s Inclusive National Affordable Housing Scheme could reach 5,000 if other commercial banks join the initiative.

Shareef made the remarks at the groundbreaking ceremony of 364 affordable housing units in Hulhumalé Phase I on Tuesday.

He noted that with the commencement of practical works on Tuesday, construction has now begun on the 3,260 housing units previously announced under BML’s programme. In addition, he said the bank plans to initiate practical works on a further 540 units, facilitated by the Government through the provision of land, bringing the total to 3,800 units.

Shareef also highlighted that under the MMA’s affordable housing policy, Maldives Islamic Bank has indicated it will provide affordable financing options for units developed by BML’s subsidiary, BML Affordable Home Leasing Company.

Speaking on the economic impact of the initiative, Shareef stated that the construction sector is the second-largest contributor to the Maldives’ GDP. He noted that the development of 3,800 housing units over two and a half years is expected to add MVR 5.7 billion to the economy, with nominal GDP projected to increase by three per cent.

He added that the initiative would benefit a wide range of stakeholders, including wholesalers, retailers, and small and medium enterprises involved in the construction sector.

Shareef said the primary objective of the affordable housing programme is to expand access to housing for those who lack the financial means to secure homes. He noted that the initiative is being implemented through collaboration between the Ministry of Construction, Housing and Infrastructure and BML, with the Ministry facilitating land allocation for development.