The plan to setup Maldives Islamic Bank was initiated way back in 2007 when the Maldives Monetary Authority granted permission to the Islamic Corporation for the Development of the Private Sector (ICD) to establish the first Islamic bank in the Maldives. In 2009, ICD signed the shareholders agreement with the Government of Maldives to initiate the project. This was followed by the incorporation of Maldives Islamic Bank (MIB) on 1st April 2010 and the submission of a formal application for a banking license to the MMA. MIB received the banking licence to conduct Islamic banking business from the MMA on 2nd August 2010.

MIB started as a collaboration between ICD and the Government of Maldives represented by the Ministry of Finance.

On 7th March 2011, officially the bank started its business operation. A special opening ceremony was held inviting officials from the government and private business sectors. MIB aims to provide an alternative to the public and businesses who wish to avail themselves to banking transactions and dealings in strict compliance to Islamic banking principles.