SME Development Finance Corporation (SDFC), established in January 2019 to address the financing challenges faced by Small and Medium-sized Enterprises (SMEs), the backbone of the Maldivian economy, has entered a new era of growth and innovation. Following its restructuring as a subsidiary of Bank of Maldives (BML), the company has been renamed SME Digital Private Limited. With this change, the company is restructuring its governance, integrating Islamic finance with digital platforms, and evolving into a full-service Sharia-compliant financial institution
This transition is more than a rebranding. It represents a strategic shift that combines the principles of Islamic finance with modern digital platforms to build a reliable, accessible, and future-ready financial institution. With a financing business license issued by the Maldives Monetary Authority (MMA), SME Digital continues to focus on supporting micro-enterprises, women-led and youth-led businesses, and entrepreneurs with disabilities segments, that often face barriers in accessing traditional financial services.
The company’s current goal is to offer a range of Shari’ah-compliant financing products that support businesses across all sectors. Over the past three months the company has introduced Working Capital Financing, Business Asset Financing, specialized financing for women entrepreneurs, funding to promote local tourism, and support for the creative economy. This growing portfolio ensures that every MSME, regardless of sector or size, can access a Shari’ah-compliant financing solution.
The most notable milestone in this journey is the initiation of efforts to transform the company into a full-fledged Islamic financial institution, along with the conversion of the entire loan portfolio into Shari’ah-compliant arrangements. With this transformation targeted for completion by 2026, all company services will be delivered in full accordance with Islamic Shari’ah principles and standards. This marks a major step toward providing businesses in the Maldives with reliable, ethically aligned, and religiously permissible financial solutions.
Over the past two years, the company has launched various financing schemes to support small and medium-sized enterprises. Among the key financing initiatives, MVR 21.17 million has been approved for 83 beneficiaries under the MVR 100 million startup loan scheme dedicated to women entrepreneurs. In addition, MVR 34.52 million has been approved to 68 applicants to support and increase MSMEs in the reef fisheries sector. To further promote sustainable growth in the fisheries industry, MVR 44.99 million has been approved to support 35 beneficiaries in installing refrigerated seawater systems on fishing vessels.
These financing schemes have been introduced as part of a government initiative, in collaboration with the respective ministries. Through such schemes, many of the challenges faced by SMEs have been addressed, laying the foundation for and ensuring their sustainable growth.
SME Digital is building an inclusive environment that ensures equal access to opportunities in line with Islamic finance principles, while delivering the digital and innovative solutions needed to accelerate the growth of the country’s small and medium-sized enterprise (SME) sector. At the same time, the company continues to strengthen its governance systems to support long-term, sustainable operations.
The company’s long-term vision is to become the Maldives’ leading and most trusted provider of integrated Shariah-compliant financial solutions, empowering small businesses through digital innovation, ethical financing, and modern service delivery.
Today, SME Digital is reshaping the national model for SME financing by introducing creative, practical, and accessible solutions tailored to entrepreneurs’ needs. Guided by forward-looking strategies, the company ensures that even early-stage and micro-businesses gain the opportunities and resources required to progress.
As SME Digital accelerates the full transition of its financing facilities to Islamic principles, it stands ready to usher in a new era of entrepreneurship, empowerment, and sustainable economic development across the Maldives.