Dhanduveri Nafaa Converts to Shari'ah-Compliant Islamic Financing, Offering Maldives' Lowest Farmer Financing Rate at 6%

The Ministry of Fisheries, Agriculture and Ocean Resources, in collaboration with SME Digital, has announced the transition of Dhanduveri Nafaa to a Shari'ah-compliant Islamic financing facility, marking a significant step in providing farmers across the Maldives with financing solutions that align with Islamic principles.

This transition forms part of ongoing efforts to provide customers with Shari'ah-compliant financing solutions and supports SME Digital's broader strategic journey towards becoming a full-fledged Islamic financial institution, reflecting a deliberate and sustained shift in the organisation's product offerings.

Supporting Maldivian Farmers and the National Economy

The financing aims to facilitate opportunities for Maldivian farmers to invest in their operations and contribute meaningfully to national economic growth. Under this facility, individuals and businesses can access collateral-free financing of up to MVR 1,000,000, while projects requiring larger-scale investment may access secured financing of up to MVR 2,000,000, giving farmers of varying scale and ambition access to appropriately sized financial support.

The facility offers a 7-year repayment period, inclusive of a maximum 12-month grace period, with a financing rate of just 6% per annum, making it the lowest financing rate available to farmers in the Maldives, a meaningful and tangible benefit for an industry that has historically faced barriers to affordable financing.

Supporting a Wide Range of Modern Agricultural Activities

The financing primarily targets a broad range of modern agricultural activities, including urban and protected agriculture, terrace or vertical gardening, poultry and small livestock farming, agro-processing and value addition, agroforestry, and the establishment of plant nurseries. In line with the Ministry's mandate to promote animal health, the facility will also extend support to veterinary services, pet farms, and pet supply businesses, broadening the scope of the financing well beyond traditional crop farming.

A Milestone in Accessible Islamic Financing

Commenting on the financing, Badhurudheen Hassan, CEO of SME Digital, said, "The transition of Dhanduveri Nafaa to a Shari'ah-compliant Islamic financing facility marks an important milestone in our ongoing efforts to provide accessible financing solutions that align with Islamic principles. Through this financing, we aim to strengthen small agricultural businesses, support their sustainable growth, and encourage greater investment in the agricultural sector. By expanding access to the resources needed to modernize operations and improve productivity, we aim to contribute to enhancing local agricultural output and strengthening long-term food security in the Maldives."

Strengthening the Agricultural Sector's Role in the Economy

This financing will provide accessible financial assistance to individuals in the agricultural sector, helping them strengthen their capacity and motivation to expand their work. Introducing such inclusive financing mechanisms represents an important step toward increasing the sector's contribution to the national economy and broadening agriculture's role in the Maldives' sustainable development agenda.

How to Apply

Applications for this financing will open on 22nd July 2026 via the SME Portal at www.smedigital.mv, giving eligible farmers and agricultural businesses a clear and accessible route to apply for this newly converted Islamic financing facility.