Financial centre in the Maldives to receive investment of about US$9 billion
Investment in the Maldives Financial Centre will total US$8.8 billion. The country’s government initiated the project. MBS Global, a company registered in Dubai and acting as the royal office of the Sheikh of Qatar, is the partner.
Project features
Construction of the centre has already begun in the capital city of the Maldives, Malé. Experts expect the facility to become operational within five years. The key advantages of this business centre are:
– no corporate taxes;
– the centre is open to businesses and individuals with no residency requirements;
– tax incentives for the inheritance of assets;
– access to multi-currency banking;
– trading operations using blockchain technology.
The financial centre’s key objective is to create a free zone for businesses related to crypto-assets in one way or another. The facility includes:
– a conference building with a capacity of 3,500 seats;
– three residential complexes with office space.
The financial centre is set to become an international hub for the crypto industry and innovative fintech companies. Spanning 830 thousand square metres, it will accommodate around 6,500 people. Additionally, the centre will create 16,000 job opportunities for residents.
According to a government statement, the project will help to triple the Maldives’ GDP within four years. Revenue from the centre is expected to reach US$1 billion within five years.
Interest of the parties
It is worth noting that the value of investments in the project exceeds the size of the country’s GDP (approximately US$7 billion). Stakeholders see implementing the project as a strategic opportunity to diversify the economy. Currently, the country’s key sectors are fishing and tourism. However, the government intends to move away from these traditional areas and expand economic opportunities.
The Maldivian economy has been in crisis for a long time. The country’s public debt is rising, and access to international finance is becoming increasingly limited. Moody’s states that the Maldives’ external liabilities will reach US$700 million in 2025. This amount will rise to more than US$1 billion in 2026.
In 2024, the country was on the verge of defaulting on Islamic bonds. India’s financial support averted the crisis. India provided the Maldives with an interest-free loan of US$50 million.
MBS has approximately US$14 billion under management. The company will finance the project through equity and debt. It already has US$5 billion to invest in the centre.
