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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 National
05-05-2025
- Business
- The National
Dubai firm unveils plan to build skyscraper-studded tax-free financial centre in Maldives
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.
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%.
Qatar Living
05-05-2025
- Business
- Qatar Living
Crisis-hit Maldives secures QatarI investment OF $8.8bn
Cash-strapped Maldives has signed a deal with a Dubai-based company to establish an $8.8bn investment zone to diversify the tourism hotspot into a 'financial freezone,' the government said on Monday. The announcement followed an agreement signed late Sunday with MBS Global Investments, a company owned by Qatar's Sheikh Nayef bin Eid Al Thani. President Mohamed Muizzu's office said in a statement that the Maldives International Financial Centre (MIFC) will include three residential and office towers, a convention centre, and hotels. 'It will position Male as the premier global business and financial hub in the Indian Ocean,' read the statement, adding it would allow the Indian Ocean archipelago to 'diversify beyond tourism.' The MIFC, in a statement, said the centre will cover an area of 780,000 sqft. Over 6,500 people are expected to stay in the region, with 35,000 visitors expected daily. MIFC's main centre will be a convention centre with a capacity of 3,500 people. International conferences, cultural events, and hackathons promoting innovation are among the events planned to be held here. The plan also includes three residential and office towers, designed for international main and regional offices. Also included are high-end branded residences, popular hotel chains, a comprehensive retail experience, an oceanographic museum, a mosque, and educational facilities, including an international school. Renowned architect Gianni Ranaulo designed the project. The $6.5bn 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 MIFC Zone will have no residency requirements and offer 'no corporate tax, tax-free inheritance and privacy,' the statement added. Set to be completed by 2030, its projected revenue is set to be 'well over $1bn 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 5% 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. Indian Prime Minister Narendra Modi welcomed Muizzu in New Delhi in October, before announcing financial support to bolster the archipelago's struggling economy. Official data showed the Maldives' foreign debt stood at $3.37bn 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%. --- Make sure to check out our social media to keep track of the latest content. Instagram - @qatarliving X - @qatarliving Facebook - Qatar Living YouTube - qatarlivingofficial
