Dubai firm unveils plan to build skyscraper-studded tax-free financial centre in Maldives

The National

05-05-2025

The Maldives government has partnered with Dubai-based MBS Global Investments to set up an $8.8 billion financial centre at capital Male, as the country seeks to attract more digital nomads and diversify its economy. The Maldives International Financial Centre will have no residency requirements and will offer no corporate tax, tax-free inheritance and ownership as per the country's constitution. Residents will have access to multi-currency banking and offshore private banking, while regulations will support digital assets and green finance, MBS Global, the family office of Qatar's Sheikh Nayef bin Eid Al Thani, said in a statement on Sunday. It is aimed at attracting global financial institutions, FinTech companies, digital nomads and entrepreneurs. The plan includes three residential and office towers, with offices, seafront branded residences, hotel brands, retail outlets, an Oceanographic Museum, mosque and an international school. MIFC will also have a conference centre with capacity for 3,500 people to host global conferences, cultural events and hackathons. The total size of the mixed-use development is 780,000 sqm, with capacity for 6,500 residents and an expected daily footfall of 35,000. It is slated to be completed by 2030. This project is aimed at increasing the country's gross domestic product within four years with projected revenue to be more than $1 billion by the fifth year. 'With the MIFC, we are shaping the Maldives of tomorrow,' Maldives' President Dr Mohamed Muizzu, said. 'The financial centre will be a symbol of economic resilience and will set a new global benchmark that will massively benefit the people of the Maldives for generations to come.' The Maldives' economy is expected to grow by 5 per cent in 2025, mainly due to robust tourism activity, according to the International Monetary Fund. However, macroeconomic imbalances have continued to widen and risks are tilted to the downside, it warned after a mission to the country in February. Inflation is expected to rise to 2.3 per cent in 2025, partly due to higher import duties. 'External vulnerabilities remain, amid a persistently large current account deficit and pressures on foreign exchange reserves,' said the IMF's Piyaporn Sodsriwiboon, who led the mission. The overall fiscal deficits and public debt are projected to stay elevated, she said, calling for urgent policy adjustment. Over the medium term, the Maldives is highly vulnerable to climate change risks, due to sea level risk, floods and the degradation of its natural environment. 'The Maldives is navigating a pivotal moment to urgently restoring macroeconomic stability and debt sustainability,' she added. The MIFC project 'offers a great opportunity to diversify our economy beyond tourism in line with our ambitions and will attract the best businesses and visionary entrepreneurs in the world', said Moosa Zameer, Minister of Finance and Planning for the Maldives. MIFC will have a 'fully climate-resilient infrastructure', and the architecture and public spaces will be powered exclusively by renewable energy, the statement said. The upper level of the development will be car-free, with all transport and logistics infrastructure located underground. It will also feature sports facilities, longevity and wellness centres, and running and cycling tracks.