Mohamed Shareef, CEO and Managing Director of Bank of Maldives (BML), has been appointed Chairman of the Small and Medium Enterprises Development Finance Company (SDFC), which will now operate as a subsidiary of BML, and Badhurudheen Hassan has been named Managing Director of SDFC.

Prior to his appointment, Badhurudheen served as Director of Retail and SME Banking at the country’s national bank. Both appointments have been officially announced by the company, which warmly welcomed the two executives.

Established in 2019 during the previous administration, SDFC was created to facilitate easier access to finance for small and medium enterprises (SMEs) in the Maldives. However, following government concerns about the company’s deteriorating condition, the government sold its shares in SDFC to BML.

The decision was finalized on July 20, following deliberations on a research paper submitted by the Ministry of Finance and Planning. The paper highlighted the positive impact expected from BML’s proposal to acquire SDFC shares.

Under BML’s stewardship, SDFC aims to provide Islamic financing services to the Maldives’ smallest and medium-sized businesses, leveraging cutting-edge technology.

According to BML, the new strategy for this digital bank will prioritize financing for startups, women-owned businesses, fishermen, farmers, agricultural enterprises, sustainable businesses, and the e-commerce sector.

Following the acquisition, BML has committed to disbursing MVR 500 million in loans to SMEs within the first year, with plans to extend this to MVR 1.9 billion over the next five years. In addition to this, MVR 300 million will be allocated specifically for business startups over the coming three years.

BML emphasized that the acquisition of SDFC is intended to accelerate the digital transformation of MSME banking in the Maldives, boost public financial participation, and enhance the self-sufficiency of the Maldivian economy. This will be achieved by leveraging BML’s strong financial position, expansive network, and growing expertise in digital banking.