Latest news with #MaldivesInternationalFinancialCentre
The National
07-05-2025
- Business
- The National
Tax-free Maldives financial centre ‘will not compete' with Dubai and Abu Dhabi hubs
The Maldives International Financial Centre will not compete with the Dubai International Financial Centre, Abu Dhabi's ADGM or other financial hubs, according to the chief executive of the company developing it. The $8.8 billion project announced this week is being developed by Dubai-based MBS Global Investments, the family office of Qatar's Sheikh Nayef bin Eid Al Thani, along with the Maldives government. The project, which will be located in Male, aims to attract global financial institutions, FinTech companies and entrepreneurs. Expected to be completed in 2030, it will feature three residential and office towers along with hotels, retail outlets and a school. 'In terms of financial centres … it's never really a competition,' chief executive Nadeem Hussain told The National in an interview this week. 'I think financial centres can create an ecosystem where many of the people that operate out of them have multiple geographical locations in terms of their operations. Obviously, with Asia, GCC and Africa, the Maldives is ideally located for maybe some of the emerging economy people who are involved in the types of businesses that we would support. 'So we're offering just another location for them, which is complementing the existing financial centres. We don't see that we would be competing with them. I'm sure when we start to operate, we will be working with the other financial centres to see what type of collaborations we can enter into.' The MIFC will seek to attract traditional financial institutions as well as those operating in virtual assets. Centres such as ADGM have a robust regulatory framework for crypto and digital asset activities. The Dubai Financial Services Authority also has a crypto token regime that provides a clear framework for businesses operating in the DIFC to ensure financial stability and consumer protection. 'Financial centres are now starting to mature in terms of how they are able to accommodate those asset classes,' Mr Hussain said. 'Digitalisation is where everything's going, so you have to cater to that new virtual asset kind of class. So yes, tokenisation, cryptocurrencies, these will be, obviously, heavily monitored and regulated, but that's the way forward in financial centres. A big part of our framework and who we're attracting will be involved in that.' The MIFC will have no residency requirements and will offer no corporate tax, tax-free inheritance and ownership. Residents will also have access to multi-currency banking and offshore private banking. Such incentives are key to attracting more businesses and entrepreneurs, but the centre will focus on regulations, Mr Hussain stressed. 'I think people appreciate that you can have a very strong, robust regulatory framework and still offer this ease of doing business,' he said. 'We've been very clear on looking at how to create that strong regulatory framework, we have to do that, particularly in new asset classes.' MBS Global expects work on the project to start by the end of this year or early next year, with the first hotels and residences scheduled to be commissioned and delivered by the fourth quarter of 2027 or the first quarter of 2028. While the land and infrastructure support is being provided by the government, the company is working with a large consortium of investors to fund the project, Mr Hussain said. The islands of the Maldives, spread over 90,000 square kilometres, face severe risks due to climate change. The World Bank has warned of significant threats to the country's natural capital and cautioned that the impact on coral reefs and fisheries, already visible, will worsen sharply by the middle of the century under both high and moderate emission scenarios. 'This degradation could have devastating effects on the Maldives' economy and environment,' it said in a September report, which assessed the impacts of sea-level rise and projected an increase of up to 90cm by 2100. 'Without effective adaptation strategies, coastal flooding could severely damage up to 3.3 per cent of the Maldives' total assets by 2050 during typical 10-year floods, resulting in damages of $0.7–1.1 billion of GDP.' However, strategic investments in adaptation could cut almost in half of the projected GDP impact, it added. Mr Hussain said the MIFC, being designed by architect Gianni Ranaulo, is focused on sustainability and that it will use 3D printing with organic and recyclable materials. Once ready, the plan is also not to use fossil fuels and instead rely on smart transport within the development. 'The Maldives is a beautiful place, it's fragile,' he said. 'We built a very resilient design through the architects and developers, we're mindful of what's happening in terms of the Maldives and sea levels and so, we've built in a very conscious way around that.' The project aims to employ about 16,000 people, with a push towards creating local jobs. 'I think people realise that we're not here just to throw up some large buildings and sell some real estate,' Mr Hussain said. 'That's not our intention. This is part of a very long thought-through process with the government about how we help them achieve their vision in terms of digitalisation and increasing the diversified revenue channels for them.' There has already been a lot of interest from companies, he added, although he did not disclose any names. 'It's such a beautiful place. It's not a hard job convincing someone to come and work in the Maldives. But to do that, they have to have that confidence that the infrastructure is there to genuinely support their business,' Mr Hussain said.
Daily Tribune
06-05-2025
- Business
- Daily Tribune
Crisis-hit Maldives secures $8.8 billion Qatar investment
Cash-strapped Maldives has signed a deal with a Dubai-based company to establish an $8.8 billion investment zone aimed at diversifying the tourism hotspot into a 'financial freezone', the government said yesterday. Three residential and office towers, a convention centre and hotels will form part of the Maldives International Financial Centre (MIFC), President Mohamed Muizzu's office said in a statement. 'It will... position Male as the premier global business and financial hub in the Indian Ocean,' the statement said, adding it would allow the Indian Ocean archipelago to 'diversify beyond tourism'. The $6.5 billion economy of the Maldives has been facing foreign exchange shortages since the Covid-19 pandemic and has been warned of a potential foreign debt crisis. The announcement followed an agreement signed late Sunday with MBS Global Investments, a company owned by wealthy Qatari Sheikh Nayef bin Eid Al Thani. The MIFC zone will have no residency requirements and offer 'no corporate tax, tax-free privacy' the statement added. It is set for completion by 2030 with its projected revenue 'to be well over $1 bn by the fifth year', according to the government. In February, the IMF said the Maldives required 'urgent and stronger' fiscal consolidation to stabilise its troubled economy, despite a thriving tourism industry. The upmarket holiday destination expects its economy to grow by five percent in 2025, but the IMF warned that the sunny outlook masked significant risks. The tiny nation declined an International Monetary Fund bailout loan late last year, with the government instead announcing severe spending cuts. Muizzu has taken a 50% pay cut, and introduced a mandatory 10% pay cut across most public sector jobs. In September, the Maldives described its financial difficulties as 'temporary' and said it had no plans to seek a bailout, despite warnings of a possible sovereign default. The Maldives is on the frontline of the battle against global warming, which could raise sea levels and swamp the nation of 1,192 tiny coral islands scattered across the equator. China and India are the two largest bilateral lenders. Beijing has pledged further funding since Muizzu's 2023 election victory, with the president thanking China for its 'selfless assistance' in providing development funds. Muizzu was welcomed in New Delhi in October by Indian Prime Minister Narendra Modi, who announced financial support to bolster the archipelago's struggling economy. Official data showed the Maldives' foreign debt stood at $3.37 billion in the first quarter of 2024, equivalent to around 45% of GDP. China accounted for about 20% of the external debt, while India held just under 18 percent.
Business Recorder
05-05-2025
- Business
- Business Recorder
Crisis-hit Maldives secures $8.8bn Qatar investment
COLOMBO: Cash-strapped Maldives has signed a deal with a Dubai-based company to establish an $8.8 billion investment zone aimed at diversifying the tourism hotspot into a 'financial freezone', the government said Monday. Three residential and office towers, a convention centre and hotels will form part of the Maldives International Financial Centre (MIFC), President Mohamed Muizzu's office said in a statement. 'It will... position Male as the premier global business and financial hub in the Indian Ocean,' the statement said, adding it would allow the Indian Ocean archipelago to 'diversify beyond tourism'. The $6.5 billion economy of the Maldives has been facing foreign exchange shortages since the Covid-19 pandemic and has been warned of a potential foreign debt crisis. The announcement followed an agreement signed late Sunday with MBS Global Investments, a company owned by wealthy Qatari Sheikh Nayef bin Eid Al Thani. The MIFC zone will have no residency requirements and offer 'no corporate tax, tax-free privacy' the statement added. It is set for completion by 2030 with its projected revenue 'to be well over $1 billion by the fifth year', according to the government. In February, the IMF said the Maldives required 'urgent and stronger' fiscal consolidation to stabilise its troubled economy, despite a thriving tourism industry. The upmarket holiday destination expects its economy to grow by five percent in 2025, but the IMF warned that the sunny outlook masked significant risks. The tiny nation declined an International Monetary Fund bailout loan late last year, with the government instead announcing severe spending cuts. Muizzu has taken a 50 percent pay cut, and introduced a mandatory 10 percent pay cut across most public sector jobs. In September, the Maldives described its financial difficulties as 'temporary' and said it had no plans to seek a bailout, despite warnings of a possible sovereign default. The Maldives is on the frontline of the battle against global warming, which could raise sea levels and swamp the nation of 1,192 tiny coral islands scattered across the equator. China and India are the two largest bilateral lenders. Beijing has pledged further funding since Muizzu's 2023 election victory, with the president thanking China for its 'selfless assistance' in providing development funds.
The Hindu
05-05-2025
- Business
- The Hindu
Crisis-hit Maldives secures $8.8 billion Qatar investment
Cash-strapped Maldives has signed a deal with a Dubai-based company to establish an $8.8 billion investment zone aimed at diversifying the tourism hotspot into a "financial freezone", the government said Monday. Three residential and office towers, a convention centre and hotels will form part of the Maldives International Financial Centre (MIFC), President Mohamed Muizzu's office said in a statement. "It will... position Male as the premier global business and financial hub in the Indian Ocean," the statement said, adding it would allow the Indian Ocean archipelago to "diversify beyond tourism". The $6.5 billion economy of the Maldives has been facing foreign exchange shortages since the Covid-19 pandemic and has been warned of a potential foreign debt crisis. The announcement followed an agreement signed late Sunday with MBS Global Investments, a company owned by wealthy Qatari Sheikh Nayef bin Eid Al Thani. The MIFC zone will have no residency requirements and offer "no corporate tax, tax-free privacy" the statement added. It is set for completion by 2030 with its projected revenue "to be well over $1 billion by the fifth year", according to the government. In February, the IMF said the Maldives required "urgent and stronger" fiscal consolidation to stabilise its troubled economy, despite a thriving tourism industry. The upmarket holiday destination expects its economy to grow by five percent in 2025, but the IMF warned that the sunny outlook masked significant risks. The tiny nation declined an International Monetary Fund bailout loan late last year, with the government instead announcing severe spending cuts. Mr. Muizzu has taken a 50% pay cut, and introduced a mandatory 10% pay cut across most public sector jobs. In September, the Maldives described its financial difficulties as "temporary" and said it had no plans to seek a bailout, despite warnings of a possible sovereign default. The Maldives is on the frontline of the battle against global warming, which could raise sea levels and swamp the nation of 1,192 tiny coral islands scattered across the equator. China and India are the two largest bilateral lenders. Beijing has pledged further funding since Mr. Muizzu's 2023 election victory, with the president thanking China for its "selfless assistance" in providing development funds. Mr. Muizzu was welcomed in New Delhi in October by Prime Minister Narendra Modi, who announced financial support to bolster the archipelago's struggling economy. Official data showed the Maldives' foreign debt stood at $3.37 billion in the first quarter of 2024, equivalent to around 45% of GDP. China accounted for about 20 percent of the external debt, while India held just under 18%.
Arabian Business
05-05-2025
- Business
- Arabian Business
Dubai-based MBS Global to help create $8.8bn financial hub in Maldives
Dubai-based MBS Global Investments will play a critical role in transforming Maldives from a tourism-based economy to a vibrant financial hub after it joined hands with the Maldives Government to create a US$8.8 billion Maldives International Financial Centre (MIFC). MIFC will be a wholly sustainable, financial freezone in Malé, the capital of Maldives. Allowing the island nation to diversify beyond tourism, it will attract the future of finance and position Malé as the premier global business hub in the Indian Ocean through the creation of an integrated, mixed-use urban district. MIFC will offer zero corporate tax, tax-free inheritance, ownership as per the country's constitution, and privacy. With no residency requirements, it is expected to attract digital nomads, entrepreneurs, and wealth creators seeking freedom without borders. According to the World Bank, Maldives' GDP in 2023 was US$6.6 billion, with tourism, fishing and agriculture as its main industries. MIFC is scheduled to be completed by 2030 and aims to increase the country's GDP within four years with projected revenue of well over US$1 billion by the fifth year. The total size of the development is 780,000 sqm, where more than 6,500 people can reside, and an expected daily footfall of 35,000. The centrepiece will be a state-of-the-art conference centre with a capacity of 3,500 people. The mixed-use development has been designed by Italian master planner architect Gianni Ranaulo, and his team based in Dubai. The local fauna and marine ecosystem inspire every structure in the project and incorporates environmentally conscious practices. The plan includes three residential and office towers designed for international HQs and regional offices; high-end sea-front branded residences, leading hotel brands, retail spaces, and oceanographic museum, mosque, and leading education facilities. Proud to announce the launch of the Maldives International Financial Centre (MIFC) — a transformative $8.8bn investment with MBS Global Investments. MIFC will diversify our economy, position Malé as a global financial hub, and unlock new opportunities for generations. — Moosa Zameer (@MoosaZameer) May 4, 2025 Dr Mohamed Muizzu, the President of Maldives, commented: 'With the MIFC, we are shaping the Maldives of tomorrow, a beacon of innovation and national pride that will thrive in harmony with nature. 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.' Nadeem Hussain, CEO of MBS Global Investments, said: 'The financial centre will set a new global benchmark, advancing financial innovation by at least two decades. It is the next evolution of what has been happening in other financial centres around the globe.' MIFC will have a fully climate-resilient infrastructure, and the architecture and public spaces will be powered exclusively by renewable energy. The upper level of the development will be entirely car-free, with all transport and logistics infrastructure located underground to preserve a pedestrian-friendly, open-air environment. Designed to be one of the most desirable places to live and work, it will feature world-class sports facilities, longevity and wellness centres, and shaded running and cycling tracks woven through expansive green spaces. Residents will benefit from multi-currency banking and access to offshore private banking. Future-ready regulations will support digital assets, and green finance. Moosa Zameer, the Minister of Finance for the Maldives, said: 'This is a momentous project. It 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.'
