Key Takeaways
- The investment exceeds the current GDP of the Maldives, which is estimated at around $7 billion
- It will operate as a regulatory “free zone,” providing offshore banking services, multi-currency accounts, and exemption from corporate and inheritance taxes.
The Maldives government has signed a $9 billion agreement with MBS Global Investments, a Dubai-based firm, to construct a blockchain-focused financial district in the country’s capital, Malé.
The centerpiece of the project is the proposed Maldives International Financial Centre (MIFC), a planned complex spanning 830,000 square meters. According to MBS, the financial district will feature a large-scale conference venue, multiple high-rise towers, and residential zones.
It will operate as a regulatory “free zone,” providing offshore banking services, multi-currency accounts, and exemption from corporate and inheritance taxes. Residency will not be a requirement for participation in the zone.
The initiative is intended to diversify the Maldives’ economy, which has long relied on tourism and fishing. Authorities hope to position the country as a competitive destination for blockchain, cryptocurrency, and Web3 ventures. MBS stated that the project could generate as many as 16,000 jobs once operational.
The investment exceeds the current GDP of the Maldives, which is estimated at around $7 billion. The construction timeline is expected to span five years. No details on financing mechanisms or project phases were released publicly.
MBS Global Investments is associated with Sheikh Nayef Bin Eid Al Thani of Qatar. The company presented the development as part of a broader effort to establish a new financial and technological destination in the South Asia region.
The announcement arrives amid fiscal challenges for the Maldives. In 2023, India issued the country a $50 million interest-free loan to prevent a default on an Islamic bond.
Ratings agency Moody’s downgraded the country’s credit score last September, citing vulnerability to external shocks and a growing debt burden. External obligations are projected to range between $600 million and $700 million this year, and could surpass $1 billion by 2026.
