Maldives hopes to avert debt default with US$9bn finance hub investment
A joint venture was signed with a Qatari family office.
Artwork: Dosain
05 May, 10:45 PM
Ahmed Naish
The planned investment to attract financial institutions, fintech companies and digital nomads could be “a potential contributor to bring us out of certain difficulties that we are in,” Finance Minister Moosa Zameer told the Financial Times. Debt service obligations in excess of US$ 1 billion over the next two years was “the biggest challenge that we have,” he added.
Last year, credit ratings agencies downgraded the Maldives as public debt reached US$ 9 billion – 133 percent of GDP. In February, the International Monetary Fund reiterated calls for an “urgent policy adjustment” to restore macroeconomic stability and debt sustainability.
"We are not here to imitate models of the past – We are here to set a new benchmark," President Dr Mohamed Muizzu declared at Sunday’s signing ceremony at the Kurumba resort, which was attended by businesses and dignitaries from the Gulf, including Sheikh Abdulla Bin Rashid Al Mualla, deputy ruler of Umm Al Quwain of the UAE, and Prince Fahad Saud Alshalan of Saudi Arabia.
The Maldives International Finance Centre, spanning 830,000 square metres, includes three towers, a 3,500-seat conference centre, high-end residential properties, retail spaces, and educational facilities. The hub will offer zero corporate tax, tax-free inheritance, and regulations supporting digital assets.
"The multi-purpose convention venue will host leading global conferences, cultural events and innovation-driven hackathons establishing Male as leading assembly hub, driving all year round engagement in the Maldives and further supporting the wider, already established hospitality industry," according to the master plan.
The renewable energy-powered development could host 6,500 people, create 16,000 jobs and "generate well over US$ 1 billion by the fifth year."
MBS has secured up to US$ 5 billion from a consortium of family offices and high net worth individuals, the company's chief executive told the Financial Times.
A groundbreaking ceremony took place in Hulhumalé on Monday morning.
The design by Italian architect Gianni Ranaulo was inspired by "local fauna and the marine ecosystem."
