SPA — The Saudi Fund for Development (SFD) has expanded its economic ties with the Maldives by supporting a major upgrade at Velana International Airport. On July 26, Maldivian President Dr. Mohamed Muizzu and SFD CEO Sultan bin Abdulrahman Al-Marshad attended the inauguration ceremony. Saudi Ambassador Yahya bin Hassan Al-Qahtani also joined the event.

The airport expansion, funded by $217 million in concessional loans from the SFD, aims to boost the country’s main aviation gateway. With upgraded domestic and international terminals, as well as a new seaplane facility, the project will increase passenger capacity to 7 million annually. It also allows for future growth to 15 million passengers per year.

Strengthening a Longstanding Development Partnership

The inauguration aligned with the 60th anniversary of Maldivian independence and highlighted 47 years of Saudi-Maldivian cooperation. Since 1978, the SFD has financed 17 development projects in the Maldives, contributing a total of about $488 million.

This airport upgrade plays a key role in the Maldives’ economic growth. It supports tourism, trade, and inter-island travel by improving passenger flow and freight capacity. These improvements are expected to drive broader development across the island nation.

By aligning its financial support with Maldivian national goals, the Saudi Fund’s Maldives airport project reinforces Saudi Arabia’s long-term approach to sustainable infrastructure. The SFD’s concessional loans aim to combine fiscal responsibility with lasting economic value, helping both social services and commercial sectors thrive.

 

 

THE SAUDI STANDARD’S VIEW: Development Diplomacy Anchors Regional Influence

The Saudi Fund for Development’s $217 million support for the Velana International Airport expansion goes beyond building infrastructure. It reflects Saudi Arabia’s broader strategy of development diplomacy. As the Maldives celebrates 60 years of independence, SFD’s presence at the event highlights nearly five decades of cooperation and Saudi Arabia’s growing global influence.

  • Driving regional connectivity: The project’s boost in passenger capacity—from 7 to 15 million—supports global travel goals. It also aligns with Vision 2030’s focus on outward engagement and building commercial corridors that benefit both Saudi and partner economies.
  • Long-term investment strategy: With 17 funded projects totaling $488 million, SFD’s role in the Maldives shows Saudi Arabia’s consistency and reliability as a development partner. This steady support strengthens diplomatic ties and builds trust across the Indian Ocean region.
  • Synergy of strategy and execution: The airport upgrade showcases the power of cooperation. Saudi Arabia offers financing, the Maldives handles execution, and both benefit from increased tourism and trade. This approach supports recovery from the pandemic while preparing for long-term growth and development.
  • Soft power through finance: Saudi Arabia’s concessional loans help build infrastructure without strict conditions. This fosters goodwill, strengthens bilateral relationships, and demonstrates how Saudi financing can drive positive change.

In summary, the Saudi Fund’s partnership with Maldives airport illustrates how Vision 2030 extends beyond national borders. It turns Saudi economic strength into global leadership, helping create stability, improve transportation, and drive shared prosperity in the region.

 

Related Reading
Track Saudi investment in global infrastructure development
Explore how concessional financing supports emerging market aviation sectors