The Government of Maldives and the Kuwait Fund for Arab Economic Development (KFAED) signed a loan agreement of KWD 3 million, about USD 9.7 million, on 4 November 2026 for the Th. Veymandoo New Hospital Construction Project.

The project will deliver a modern, fully equipped 50-bed hospital that provides secondary healthcare to residents of the island and nearby communities. The loan falls within the Fund's USD 10 million annual country limit for the Maldives.

Finance and Public Enterprises Minister Hassan Zareer and KFAED Acting Director General Rashaid A. Al-Bader signed the agreement, the Ministry of Finance and Public Enterprises said. The Minister of Health, Family and Welfare and senior Kuwait Fund officials attended.

What the hospital is for

The ministry said the project aims to give Th. Atoll residents easy access to quality care. It will also ease the current space constraints at the hospital, expand its services and make better use of space for care and equipment.

First health project for the Fund

Al-Bader said this is the Fund's 15th loan to the Maldives and its first investment in the health sector. He said the partnership has run for 50 years, since the first agreement in 1976. To date it covers:

  • 14 concessional loans totalling around USD 185 million

  • USD 5.7 million in grants and technical assistance

What the minister said

Zareer recalled the Fund's past support, including the Velana International Airport development projects, the new terminal expansion and the Fuvahmulah Coastal Protection Project. He described the agreement as a shared investment in the health, well-being and future prosperity of Maldivians. He said accessible, equitable healthcare is a key national priority in a geographically dispersed nation.

Higher loan limit from 2027

After the signing, in a courtesy call, KFAED said it will raise its annual country loan limit for the Maldives from USD 10 million to about USD 40 million from 2027. This follows a request Zareer made on the sidelines of an Asian Infrastructure Investment Bank (AIIB) Annual Meeting. The Fund also expressed strong interest in the Thilafushi port development project and said it is ready to start financing talks.

The ministry's release did not give the loan terms, or a start or completion date for construction.