The Ministry of Finance has announced a significant shift in the management of social housing in the Maldives. Under the proposed budget for the coming year, the Housing Development Corporation (HDC) will transfer all its social housing responsibilities to the Fahi Dhiriulhun Corporation (FDC). This move is expected to bring about a more focused and efficient approach to social housing projects, enhancing the overall housing landscape in the country.
FDC Takes the Lead on Social Housing Projects
FDC, established in 2019, has been at the forefront of developing social housing projects in the Maldives. One of its key ongoing initiatives is the Gedhoruveriya housing scheme, which aims to provide 4,000 flats in Hulhumale’. With this transfer of responsibility, FDC will have the opportunity to expand its focus and deliver more well-researched, effective housing solutions for the growing population.
The Ministry of Finance believes that the transfer will enable FDC to streamline its efforts and work more effectively on social housing projects, ensuring that these initiatives are carried out in the most efficient manner possible. FDC's expertise in the field of social housing will allow the corporation to take a more hands-on role in managing the development of new homes and improving living conditions for many Maldivians.
A Strategic Partnership for Better Governance
To ensure that both HDC and FDC benefit from this shift, FDC will become a subsidiary of HDC. This new structure aims to reduce the reliance on government funding and improve governance within both corporations. By consolidating operations and creating a more effective procurement system, both entities will be able to operate at minimal costs, ultimately benefiting the citizens they serve.
The Ministry of Finance has emphasized that this restructuring will lead to a more streamlined operation, reducing overhead costs and enhancing the overall governance of the two corporations. The move is seen as an important step toward ensuring long-term sustainability in the housing sector.
HDC’s Future Focus
With the transfer of social housing duties, HDC will be able to concentrate more on broader housing development and commercial projects. This strategic shift will allow the corporation to focus on more diverse projects, including the development of high-end residential and commercial properties in the rapidly growing city of Hulhumale’.
One of the potential outcomes of this shift is that HDC could move toward an Initial Public Offering (IPO), allowing it to raise capital by selling shares to the public. This would provide a significant boost to the company’s operations, allowing it to fund more large-scale development projects and play an even greater role in shaping the future of the Maldives’ housing sector.
HDC has played a vital role in the development of Hulhumale’ since its establishment in 2001. In 2005, the corporation’s mandate expanded to include overseeing housing projects, and it has since been involved in both commercial and social housing initiatives. Now, with the transfer of social housing responsibilities to FDC, both corporations are poised to focus on their core strengths and contribute to the continued growth of the Maldives’ housing sector.
As the housing landscape continues to evolve, this shift between HDC and FDC marks a significant step toward creating a more efficient and sustainable future for social and commercial housing in the Maldives.
