Bank of Maldives (BML) has established a new housing company and officially received land on Thursday to construct 3,000 housing units. The newly formed subsidiary, BML Affordable Home Leasing Private Limited, has been set up with approval from the Maldives Monetary Authority (MMA).

According to a statement issued by the bank following the signing of an agreement with the Ministry of Construction, Housing and Infrastructure, the land acquired in Hulhumalé Phase I, Hulhumalé Phase II, and Vilimalé will be used for the development of the housing units under the Inclusive National Affordable Housing Scheme mandated by the central bank, for all banks.

Under the new regulations introduced by MMA, all commercial banks in the Maldives are required to allocate between 10 percent and 15 percent of their total loan portfolio to the Inclusive National Affordable Housing Scheme.

The new company, which is fully owned by BML, is headed by Hassan Shaam, the bank’s Director of Executive Affairs, Properties, and Administration, who serves as its Managing Director. The agreement for the land handover was signed by Construction Minister Dr. Abdulla Muththalib and Sham at the official ceremony held on Thursday.

At the ceremony, Muththalib described the event as the start of a partnership between the government and the Maldivian-owned bank, whose majority shareholders are Maldivian citizens, to address the country’s persistent housing crisis. He stated that BML will develop 300 units in Vilimalé and 2,700 units in Hulhumalé, emphasizing that the flats will be designated as affordable housing units, priced comparably to those currently available. Although BML will oversee construction, the allocation of units will be managed through government-announced programs.

From Muththalib ’s remarks, it was evident that President Dr. Mohamed Muizzu’s administration had attempted to secure foreign loans to advance housing projects but faced significant obstacles due to the weakened state of the Maldivian economy, making it difficult to obtain financing from foreign banks and countries.