President: Capital market ‘ideal solution’ for businesses facing financial challenges

President Ibrahim Mohamed Solih (C) at the inauguration of the Capital Market Forum 2019 at Bandos Maldives on October 31, 2019. (Photo/President's Office)

President Ibrahim Mohamed Solih says the capital market is the ideal solution for local businesses which face challenges in securing finance from commercial banks.

The President made the remark at the inauguration of the Capital Market Forum 2019 at Bandos Island Resort this Thursday.

He noted that a large percentage of businesses operating within the Maldivian economy were small and medium enterprises, and that conventional and Islamic finance system in Maldives wasn’t enough to quell the challenges facing SMEs in terms of growth and development.

He said that the biggest challenge facing SMEs was the difficulties in securing the finance needed for business growth from commercial banks.

“The biggest challenge is the lack of sufficient funding options available for businesses from the financial institutions in Maldives. The banking system alone isn’t enough for companies to obtain the necessary financial support,” said the President.

He said that the capital market was the ideal solution for the issue.

He suggested that capital market could be made an additional financial tool for local startups and enterprises which require finance for growth.

He also said that it was important to expand the existing state schemes for SME development from within the capital market system with assistance of multiple investors.

Capital Market Forum is the first of its kind to be held in Maldives.

Its organized by the Capital Market Development Authority in collaboration with the Maldives Stock Exchange, and in partnership with Maldives Monetary Authority (MMA), Bank of Maldives (BML), Maldives Pension Administration Office, Dhiraagu, and Corporate Maldives.