MMA launches the Maldives Islamic social finance initiative
Abstract
The Maldives Monetary Authority (MMA) has officially launched the Maldives Islamic Social Finance Initiative (MISFI), marking a transformative step towards embedding Islamic social finance principles within the country's banking system. The initiative was inaugurated by President Dr Mohamed Muizzu at a high-level event attended by senior government officials, regulators and leaders from the financial services sector. In my keynote address titled 'Reimagining the Maldivian banking system through Islamic social finance instruments', I underscored the urgent need to reshape the Maldivian financial ecosystem into one that champions justice (adl), benevolence (ihsan) and systemic inclusion. Drawing from global best practices and rooted in Maqasid Shariah, Islamic social finance is not merely about charity - it is about empowering communities, balancing wealth and building a resilient economy that serves all segments of society. MISFI represents a comprehensive national strategy that integrates traditional Islamic financial instruments - such as sadaqah, zakat, waqf, qard hasan and Islamic crowdfunding - into the mainstream financial system. Inspired by Malaysia's pioneering Sadaqah House model developed by Bank Islam, MISFI has been adapted to the Maldivian context under the guidance of Dr Latifa Bibi Musafar Hameed, whose research laid the foundation for this initiative. This innovative model aligns with the National Financial Inclusion Strategy and leverages technology, transparency and cross-sector collaboration. Commercial banks, by their shareholder-driven nature, are often structurally limited in offering non-profit social finance. MISFI creates a dedicated, purpose-driven framework that complements - not competes with - Islamic banks, enabling efficient fund mobilization, enhanced governance and structured outreach to underserved communities.
Keywords
Islamic social finance , Islamic financial instruments , Maldives
Citation
Muneeza, A. (2025). MMA launches the Maldives Islamic social finance initiative. Islamic Finance News, 22(19), 17.
Publisher
Redmoney
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