The Kuwait Fund for Arab Economic Development (KFAED) announced on Sunday the inauguration of the expansion and modernization project of Velana International Airport in Malé, the capital of Maldives, under an Arab development cooperation framework. The ceremony was attended by Maldivian President Mohamed Muizzu, KFAED Acting Director-General Waleed Al-Bahar, and senior Maldivian government officials, along with representatives of the Arab Coordination Group.

In a press statement received by Kuwait News Agency (KUNA), President Muizzu praised the contributions of the Kuwait Fund for Development, Saudi Fund for Development, Abu Dhabi Fund for Development, and OPEC Fund for International Development through concessional loans that enabled the construction of a state-of-the-art passenger terminal. He emphasized that the project aligns with Maldives' aspirations to enhance infrastructure and boost its tourism sector.

"This project exemplifies successful joint development and collective cooperation," President Muizzu stated. "The new terminal will not only improve travel experiences for millions but also drive national economic growth and accommodate the increasing demand in tourism." He expressed deep gratitude for the generous financial support from the Arab development funds, acknowledging their pivotal role in this achievement.

KFAED’s $123 Million Contribution
Acting Director-General Waleed Al-Bahar revealed that KFAED’s total contribution to the airport expansion project amounted to 37.62 million Kuwaiti dinars (approx. $123 million). He highlighted that the upgraded airport will revitalize tourism, meet growing air transport demand for passengers and cargo, and enhance trade, with an annual capacity of 7.3 million passengers.

Decades of Kuwait-Maldives Development Partnership
Al-Bahar noted that Kuwait’s developmental cooperation with Maldives dates back to 1976, when KFAED provided its first $5 million concessional loan to improve the then-named Hulhule Airport. Since then, the Fund has extended 15 loans totaling 61.1 million Kuwaiti dinars (approx. $199.8 million) for vital projects in water, sanitation, transportation, healthcare, disaster recovery, coastal protection, and fisheries.

He reaffirmed Kuwait’s steadfast commitment to supporting Maldives' development journey and expressed optimism for future collaborations, stating that this project embodies KFAED’s mission to drive transformative and sustainable impact.

Additional Support
Beyond loans, KFAED has provided 1.3 million Kuwaiti dinars (approx. $4.2 million) in technical assistance, along with a 583,000 Kuwaiti dinar (approx. $1.9 million) grant from Kuwait’s "Decent Life Fund for Islamic Countries" to enhance food security and improve living standards in Maldives.

A Model of Arab Cooperation
Al-Bahar commended the enduring partnership between KFAED, the Arab Coordination Group, and the Maldivian government, underscoring their shared vision for sustainable development.