Spotlight –
Madeeh Jamal: The Visionary Behind Printlab’s Dominance in the Maldivian Printing Industry
The Impact of Declining Resort Bednights on the Maldivian Economy
Navigating the Climate Crisis: Adaptation, Prevention and the Future of Maldives
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Greetings and welcome to the December 2024 edition of Corporate Maldives Magazine. As a quarterly print publication, we remain dedicated to providing comprehensive coverage of the Maldives business community.
In this edition, our Corporate Maldives Spotlight shines on Printlab, a company founded in 2009 to meet the growing demand for high-quality, reliable, and cost-effective large format printing services in the Maldives. Our team had the privilege of sitting down with Madeeh Jamal, the Managing Director of Printlab, to delve into the company’s operations and its numerous milestones over the years.
Our news segments cover a broad range of industries and business sectors in the Maldives, including tourism, construction, banking, technology, trade, fisheries, and agriculture, among others.
We hope you find this edition informative and engaging. Happy reading!
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CORPORATE MALDIVES SPOTLIGHT: PRINTLAB
TOURISM & AVIATION
BANKING & FINANCE
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TECHNOLOGY & INNOVATION
CORPORATE MALDIVES DATA
ENVIRONMENT & CLIMATE CHANGE
TRANSPORT & CONSTRUCTION
TRADE, FUEL & SHIPPING
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CORPORATE MALDIVES EVENTS BUSNESS DIRECTORY
GOVERMENT & ECONOMY
HUMAN RESOURCES
FOREIGN POLICY
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SOCIETY & INVESTMENT
CORPORATE MALDIVES SPOTLIGHT
Madeeh Jamal has transformed Printlab into a standout force within the Maldivian printing industry. Launched in 2009 with the aim of providing reliable and top-tier large format printing services, Printlab quickly rose to dominate the market, securing over 80% of the business. Through Madeeh’s forward-thinking approach and relentless pursuit of excellence, the company now operates one of the most advanced printing facilities in South Asia, with a daily production capacity exceeding 30,000 square feet.
What sets Printlab apart is its dedication to staying ahead of the curve. Under Madeeh’s guidance, the company has continuously expanded its capabilities, introducing specialized services like fabric and UV printing, laser engraving, and custom wood and metal works. This unwavering focus on innovation and customer satisfaction has firmly established Printlab as a leader in its field. We had the opportunity to speak with Madeeh about his journey with Printlab and to gain insight into the company’s plans for the future.
Madeeh Jamal MANAGING DIRECTOR OF PRINTLAB
What initially inspired the founding of Printlab back
in 2009?
Can you share some key milestones that have shaped Printlab’s success over the years?
What do you believe sets Printlab apart from other printing facilities in the Maldives and the region?
What have been some of the biggest challenges you’ve faced in the large format printing industry, and how have you addressed them?
Customer satisfaction is a core focus for your company. How do you ensure high standards of quality and timely delivery across your projects?
Printlab was founded in 2009 to address the need for high-quality, reliable, and cost-effective large format printing services in the Maldives. we aimed to provide government organizations, public companies , resorts, and private businesses with printing solutions dominating above 80% of the market. Our vision was to become a leader in the industry by leveraging latest technology and exceptional customer service.
Since our inception, we’ve reached several key milestones that have significantly shaped our success. One major achievement was the expansion of our printing capacity, now exceeding 30,000 sq feet per day, making us one of the largest in house printers and production workshop in South Asia with a factory capacity of 9000sq feet manned by more than 40 staffs.
Another milestone was the installation of specialized printers for fabric and UV prints, diversifying our service offerings. We also introduced laser engravers and sublimation printing on metal plates / acrylic, expanding our product range. Our in-house carpentry department facilitates backdrop framings, photo framing services and other woodworks. Additionally, we have started acrylic signage and trophy/plaque production and acquired a CNC machine to further enhance our capabilities. Our commitment to quality and customer satisfaction has earned us a strong reputation and numerous industry recognitions over the years.
Printlab stands out due to our state-of-the-art equipment, extensive range of services, and unwavering commitment to quality. We operate six large format printers, including specialized machines for fabric and UV prints, allowing us to handle a wide variety of projects efficiently. Our ability to deliver up to 30,000 sq feet of prints per day sets us apart in terms of capacity and speed. Moreover, our team’s expertise and dedication to customer satisfaction ensure that we consistently exceed client expectations.
One of the biggest challenges we’ve faced is keeping pace with rapid technological advancements in the printing industry. To address this, we continuously invest in the latest printing technology and upgrade our equipment to stay ahead of the curve. Another challenge is maintaining consistent quality while scaling our operations. We have implemented rigorous quality control measures and provide ongoing training for our staff to ensure that we meet our high standards across all projects.
Ensuring high standards of quality and timely delivery involves a combination of advanced technology, skilled personnel, and efficient processes. Our top-tier printers and quality control systems help maintain consistency in our output. We also have a dedicated customer service team that works closely with clients to understand their needs and provide timely updates. This close collaboration, along with our commitment to excellence, helps us meet and often exceed our clients’ expectations.
One of the biggest challenges we’ve faced is keeping pace with rapid technological advancements in the printing industry. To address this, we continuously invest in the latest printing technology and upgrade our equipment to stay ahead of the curve.
With rapid technological advancements, how does Printlab stay at the forefront of the industry?
Your team is known for its youthful energy and expertise. What strategies do you employ to keep them motivated and continuously improving their skills?
Looking ahead, what are your strategic goals for Printlab, and how do you plan to achieve them?
Staying at the forefront of the industry requires a proactive approach to technology and innovation. We regularly attend industry conferences and trade shows to stay updated on the latest trends and advancements. By continuously investing in cuttingedge equipment and training our staff, we ensure that Printlab remains a leader in the printing industry. Our in-house services now include large format printing, event backdrops, laser cutting and engraving, CNC routing and engraving, UV printing on acrylic, metal, and wood, as well as flags and fabric printing. We also offer custom wood and metal works, acrylic and wood signage, photo framing, awards and plaques, and stamps.
To keep our team motivated and continuously improving, we focus on creating a positive and inclusive work environment. We provide regular training and professional development opportunities to keep our staff updated on the latest industry practices. We also foster a culture of innovation and collaboration, where team members can share ideas and contribute to the company’s growth. Recognizing and rewarding their hard work and achievements plays a crucial role in maintaining their enthusiasm and commitment.
Our strategic goals include expanding our service offerings and exploring new markets both within and outside the Maldives. We aim to enhance our digital presence and streamline our processes to provide an even better customer experience. To achieve these goals, we will continue investing in advanced technology, fostering innovation, and building strong relationships with our clients and partners. Our focus will remain on delivering exceptional quality and service, which will drive our growth and success in the coming years.
In the dynamic world of large format printing, where technological advancements and customer expectations constantly evolve, Printlab has firmly established itself as the leader in the Maldives. Founded in 2009 with a vision to address the growing demand for high-quality, reliable, and cost-effective printing solutions, Printlab has since become synonymous with innovation and excellence in the industry.
The journey of Printlab began with an ambitious goal: to provide government organizations, public companies, resorts, and private businesses with unparalleled and reliable printing services. What started as a small venture quickly grew into a powerhouse, dominating over 80% of the market. This success can be attributed to the company’s unwavering commitment to leveraging the latest technology, ensuring consistent reliability, and delivering exceptional customer service.
Over the years, Printlab has achieved several key milestones that have significantly shaped its growth. One of the most notable achievements was the expansion of its printing capacity, which
now exceeds 20,000 square feet per day. This impressive capability has positioned Printlab as one of the largest in-house printers and production workshops in the region.
In addition to its large-scale printing operations, Printlab has continuously diversified its service offerings to meet the evolving needs of its clients. The installation of specialized printers for fabric and UV prints, the introduction of laser engravers and sublimation printing on metal plates and acrylic, and the establishment of an in-house carpentry department are just a few examples of how the company has expanded its product range.
Through its relentless pursuit of innovation and quality, Printlab has earned a strong reputation and numerous industry recognitions. Today, it stands as a testament to what can be achieved through visionary leadership, a commitment to excellence, and a passion for meeting customer needs. As Printlab looks to the future, its journey of innovation and excellence continues, with new milestones on the horizon.
In an industry where competition is fierce and technological advancements are constant, Printlab has carved out a unique position as a leader in large format printing in the Maldives. What sets Printlab apart is not just its state-of-the-art equipment and extensive range of services, but also its unwavering commitment to delivering top-tier quality and exceeding customer expectations.
From its inception, Printlab has been driven by a mission to provide high-quality printing solutions that cater to the diverse needs of its clients. Over the years, the company has made significant investments in cutting-edge technology, allowing it to handle a wide variety of projects with unmatched efficiency and precision.
The six large format printers, including specialized machines for fabric and UV prints, are a testament to Printlab’s capacity to deliver up to 20,000 square feet of prints per day—setting a new benchmark in terms of speed and scale in the region.
But Printlab’s success is not just about the technology; it’s about the people behind it. The company’s team of experts brings a wealth of experience and dedication to every project, ensuring that each print meets the highest standards of quality. This commitment to excellence is reflected in the company’s rigorous quality control processes and its focus on customer satisfaction.
Printlab’s success is driven not just by its technological prowess but also by its deep understanding of client needs. The company offers more than just printing services; it provides tailored solutions that integrate seamlessly with clients’ broader business goals. This ability to customize and adapt has made Printlab a preferred partner across various industries, whether for precision laser cutting, bespoke wood and metal works, or large-scale event backdrops.
Looking forward, Printlab isn’t just keeping pace with industry trends—it’s actively shaping them. By focusing on continuous innovation and expanding into new service areas, the company is positioning itself to lead the next wave of transformation in the printing sector. This forward-thinking approach ensures that Printlab not only meets but anticipates the evolving needs of its clients, setting a new standard for what printing can achieve in the
Printlab has been driven by a mission to provide high-quality printing solutions that cater to the diverse needs of its clients.
Behind every great company is a team of dedicated individuals who bring passion, creativity, and expertise to their work. At Printlab, this is no different. The company’s success in the highly competitive printing industry is not just a result of its cutting-edge technology and extensive service offerings; it’s also due to the youthful energy and expertise of its team.
Printlab’s team is known for its vibrant and dynamic approach to work, which has been a driving force behind the company’s growth and success. The team’s youthful spirit is not just about age; it’s about a mindset that embraces innovation, collaboration, and continuous improvement. This culture of positivity and inclusivity has been carefully cultivated by the company’s leadership, who understand the importance of keeping their team motivated and engaged.
One of the key strategies employed by Printlab to keep its team continuously improving is through regular training and professional development opportunities. By providing their staff with the latest industry knowledge and skills, Printlab ensures that its team remains at the cutting edge of the printing industry. This focus on professional growth is complemented by a culture that encourages
innovation and the sharing of ideas, allowing team members to contribute to the company’s success in meaningful ways.
In addition to fostering professional growth, Printlab also places a strong emphasis on recognizing and rewarding hard work and achievements. By celebrating successes and providing opportunities for advancement, the company has created an environment where employees feel valued and motivated to perform at their best.
The result is a team that is not only skilled and knowledgeable but also deeply committed to delivering the highest quality of work. It’s this combination of youthful energy, expertise, and a positive work environment that has enabled Printlab to consistently exceed client expectations and set new standards in the printing industry.
As Printlab continues to grow and evolve, the company’s leadership understands that its most valuable asset is its people. By investing in their development and fostering a culture of collaboration and innovation, Printlab ensures that its team will continue to drive success for years to come.
Tourist
Share of Bed Capacity by Type
The Maldives’ tourism sector has continued its impressive growth in 2024, with the latest data as of 12th November showing total tourist arrivals reaching 1,733,680. This marks a 9.5% increase compared to the same period in 2023, which saw 1,583,951 arrivals.
Breaking down the figures by month, January 2024 recorded 192,385 arrivals, up by 11.5% from January 2023. February saw even more significant growth, with 217,392 arrivals, a 22.2% increase. March followed with a robust 11.9% rise, totalling 194,227 arrivals. The growth rate, however, was more subdued in the subsequent months, with April experiencing a 2.4% increase (168,366 arrivals) and May seeing a slight decline of 0.9% (119,875 arrivals).
In the latter half of the year, the trend picked up again, with July seeing a 15.0% increase (167,528 arrivals) and August recording a 13.8% rise with 176,175 arrivals. October registered 172,621 arrivals, representing an 8.5% increase year-on-year. Notably, the first twelve days of November 2024 have already seen 69,032 arrivals, reflecting an 8.3% increase compared to the same period last year.
The latest data also highlights key source markets for Maldivian tourism. China remains the largest market, contributing 243,843 arrivals (14.1% of total arrivals). Russia follows with 193,726 arrivals (11.2%), and the United Kingdom ranks third with 150,179 arrivals (8.7%). Other major markets include Germany (133,384 arrivals), Italy (118,428 arrivals), and India (105,743 arrivals).
In terms of accommodation, the Maldives has expanded its capacity with a total of 64,736 beds in operation. Resorts continue to dominate with 44,681 beds, while guesthouses account for 15,091 beds. Safari vessels and hotels contribute 3,008 and 1,956 beds, respectively.
Despite minor fluctuations in growth rates across months, the overall trend for 2024 remains positive, driven by strategic efforts to diversify the Maldives’ source markets and enhance its appeal as a premier travel destination. The sustained increase in tourist arrivals underlines the resilience and attractiveness of the Maldives, which continues to draw visitors from around the world.
Maldives Financial Position – September 2024
Total Assets
Foreign Currency Finacial Assets
Local Currency Financial Assets
Total Liabilities
Foreign Currency Financial Liabilities
Local Currency Financial Liabilities
Equity
Inflation is the percentage change in the general price level in the economy during a given period.
Inflation in the Maldives exhibited considerable fluctuations in 2024. Starting at 0.9% in January, it increased slightly to 1.1% in February, only to dip into deflation in March and April at -0.2% and -1.1%, respectively. This downward trend was attributed to falling prices in certain sectors. However, inflation rebounded to 0.8% in May, climbing steadily to 1.4% in June and stabilizing at that rate through August. The recent inflation surge has been primarily driven by rising costs in food and utilities, reflecting the economy's vulnerability to global price shifts
The Maldives' trade data for 2024 shows a consistent trend of higher imports compared to exports. Import values fluctuated, starting at USD 330.83 million in January, dipping to a low of USD 263.25 million in June, before rising again to USD 331.65 million in September. In contrast, exports remained significantly lower,
peaking at USD 47.75 million in January but gradually declining, reaching a low of USD 20.63 million by June and ending at USD 21.49 million in September. This highlights the country's persistent trade imbalance throughout the year
Total Revenue Collection: The Maldives collected a total of MVR 20.6 billion from January to October 2024. The highest revenue was recorded in January with MVR 3.61 billion, while May saw the lowest at MVR 1.66 billion. However, there was a decline in October, with collections at MVR 1.73 billion, down from September’s MVR 2.29 billion.
Tourism Sector:
The tourism sector remained a significant contributor to GST, with the highest collection in February at MVR 1.2 billion. June witnessed a notable decrease, with collections dropping to MVR 419.68 million. Recovery was observed in the following months, reaching MVR 632.80 million in August and increasing slightly to MVR 623.00 million by October.
Non-Tourism Sector:
The non-tourism sector’s GST peaked in January at MVR 469.21 million but saw a drop to MVR 328.80 million in June. By October, it had risen to MVR 470.07 million, reflecting a steady recovery.
Corporate Income Tax:
The highest Corporate Income Tax collection was in January at MVR 1.02 billion. Another significant collection was noted in July with MVR 867.39 million. However, there was a sharp decline to MVR 26.82 million in October.
Tourism Land Rent:
A peak collection of MVR 370.57 million occurred in March, while May had the lowest at MVR 12.71 million. September recorded a strong figure of MVR 361.68 million, but this dipped to MVR 58.77 million in October.
Work Permit Fees: Work Permit Fees showed robust performance, peaking in July at MVR 63.19 million. September maintained a strong collection of MVR 56.47 million, with October slightly lower at MVR 52.85 million
The overall Consumer Price Index (CPI) for the Maldives increased by 0.16% in September 2024 compared to August, slightly lower than the 0.19% increase recorded in the previous month. On a year-on-year basis, the CPI rose by 1.14% from September 2023 to September 2024, reflecting a moderate inflationary trend.
This category experienced a slight decline of 0.06%, mainly driven by sharp drops in the prices of reef fish (-8.96%), lime (-9.51%), and carrot (-7.79%). However, prices of onions (+24.36%) and eggs (+3.62%) increased, partially offsetting the decline.
The health sector experienced a 0.51% rise, driven by a notable increase in outpatient services (+5.94%).
Prices in the fish category saw a significant decrease of 2.69%, with reef fish prices dropping by 8.96%.
Prices for personal care products rose by 0.32%, primarily due to increases in personal care appliances.
Prices in the housing category, including utilities, rose by 0.48%, largely due to a 1.70% increase in electricity costs.
This sector saw a decline of 0.18%, driven by a reduction in the cost of mobile communication services (-0.38%) and laptops
In Malé, the CPI increased by 0.14%, with the food and nonalcoholic beverages category rising by 0.34% due to surges in prices of onions (+38.85%) and papayas (+10.48%). Conversely, mobile services prices decreased, contributing to a 0.21% decline in the information and communication category.
In the Atolls, the CPI rose by 0.19%, with the housing and utilities category seeing a significant increase of 2.05% due to higher electricity costs. However, the food category recorded a decline of 0.42%, driven by falling prices for reef fish and various vegetables.
In September 2024, the Maldives continued to face inflationary pressures in essential sectors like health and utilities, while prices for fish and communication services provided some relief. Regional disparities persisted, with Malé seeing higher inflation in food prices compared to the Atolls
Tourism Sector Takes a Hit
The Maldives Monetary Authority (MMA) has released its latest Quarterly Business Survey, revealing significant challenges faced by the tourism, construction, wholesale and retail sectors during the second quarter of 2024.
The tourism sector, a vital part of the Maldivian economy, experienced a tough quarter. Revenues and resort bookings dropped sharply between April and June 2024, with many businesses reporting fewer guests and lower room rates. Employment in the sector also fell, with fewer workers being hired and wages declining.
Despite these challenges, there is some hope for improvement in the third quarter. Businesses expect a slight uptick in revenue and bookings as the peak tourist season approaches.
The construction sector also faced difficulties. Activity levels dropped significantly, and many businesses saw fewer new projects. Employment in construction fell, and input costs remained high, making it harder for companies to operate profitably.
Looking ahead, the construction industry expects continued struggles, with further declines in activity and employment anticipated in the next quarter.
Transportation and Communication Sector Outlook
The wholesale and retail sector saw mixed results in the second quarter. While sales volumes fell, employment numbers rose as businesses hired more workers. However, many companies faced rising costs and declining profits, contributing to a challenging business environment.
Expectations for the third quarter are uncertain. Some businesses foresee an improvement in sales, while others anticipate further difficulties, especially in managing costs and maintaining profitability.
Looking Ahead
The transportation and communication sector also faced a rough patch, with significant declines in revenue and demand. Despite these setbacks, employment in the sector remained high, and businesses are optimistic about future growth. Many expect increased revenue and demand in the coming months, indicating a potential turnaround.
The second quarter of 2024 proved challenging for the Maldives’ key economic sectors. Tourism, construction, and wholesale and retail businesses all reported difficulties, though there is cautious optimism for improvement in the near future. As the country navigates these economic challenges, the insights from the MMA’s survey will be crucial for guiding recovery efforts and supporting business growth.
President Dr. Mohamed Muizzu recently announced that China has given a green signal to potentially defer the Maldives’ loan repayments, a significant potential development for the nation. This scenario of deferred loans, while offering immediate economic relief, illustrates the complexities and contradictions of pursuing nationalistic autonomy in an interconnected global economy. As Muizzu continues to champion economic independence, the reliance on Chinese financial aid highlights the challenges of maintaining such a stance in today’s globalised world.
Mechanics and Implications of Potential Loan Deferment
Loan deferment involves postponing the repayment of loans for a specified period. During this deferment period, the borrower is not required to make principal or interest payments. However, the interest on the deferred amount may continue to accrue, which means that the total amount to be repaid can increase over time.
In the case of the Maldives, if China were to agree to defer the loan repayments, the process would likely involve several key steps:
1. Initial Agreement: The Maldives and China would negotiate the terms of the deferment, including the length of the deferment period, interest rates during deferment, and any conditions or requirements attached to the agreement.
2. Technical Assessment: A Chinese financial delegation would visit the Maldives to conduct a thorough assessment of the country’s financial situation. This assessment would help determine the most feasible and beneficial terms for both parties.
3. Formalisation: Once the terms are agreed upon, a formal agreement would be signed. This document would outline the deferment period, the new repayment schedule, and any accrued interest.
4. Implementation: The deferment would come into effect, providing immediate financial relief to the Maldives. During this period, the Maldives could reallocate funds that would have gone towards loan repayments to other critical areas such as infrastructure, healthcare, and education.
While this potential deferment offers short-term benefits, it also increases the Maldives’ financial dependency on China. This dependency could lead to increased Chinese influence over Maldivian economic policies and decisions, potentially compromising the country’s long-term economic autonomy and sovereignty.
President Muizzu’s political platform has been heavily rooted in nationalistic ideals, emphasizing economic independence and reduced foreign dependency. He has often stated that true independence can only be achieved through economic autonomy and national sovereignty.
However, the consideration of Chinese financial aid starkly contrasts with these promises, revealing a significant tension between his nationalistic rhetoric and the pragmatic economic strategies necessary for the Maldives’ survival.
The potential deepening of financial ties with China highlights the impracticality of achieving complete economic independence in a globalised world. The Maldives’ need for external financial support demonstrates that no nation, especially a small island economy, can remain entirely self-reliant without engaging in global economic networks and partnerships.
Given the current global economic landscape, it is crucial for the Maldives to reassess its economic strategy. While nationalistic ideals of economic independence are appealing, the reality of global interdependence cannot be ignored. The Maldives must balance the immediate benefits of external financial aid with the long-term goal of maintaining economic sovereignty. Diversifying economic partnerships and ensuring that foreign aid complements rather than compromises national interests will be essential in navigating this complex terrain.
The pending deferment of loan repayments to China offers the Maldives potential financial relief but simultaneously illustrates the inherent contradictions in President Muizzu’s nationalistic rhetoric. In a globalised world, the pursuit of complete economic autonomy is impractical. As the nation moves forward, it must carefully navigate the balance between leveraging international support and maintaining its economic independence, acknowledging that in today’s interconnected world, true isolation is neither feasible nor desirable.
Land reclamation has long been a cornerstone of government projects in the Maldives, touted by successive administrations as a solution to housing crises, economic stagnation, and rural depopulation. Yet, beneath the rhetoric of progress lies a more troubling reality: vast swathes of reclaimed land, stretching across rural and urban areas alike, remain unused and barren, a testament to the disconnect between political promises and practical outcomes.
The roots of this issue trace back to the tenure of former President Maumoon Abdul Gayoom, who initiated land reclamation projects in rural areas as part of a broader strategy to expand habitable and economically viable land in the low-lying island nation. Since then, the reclamation of land has become a hallmark of subsequent governments, with each administration pledging to continue these projects, often using them as campaign promises to secure political support.
However, despite the millions invested and the numerous campaigns centred around these projects, the actual benefits to both the government and the people have been debated. The majority of reclaimed land remains undeveloped, lacking the basic infrastructure needed to make it habitable or economically productive. For instance, the city of Hulhumale stands out as one of the few examples where reclaimed land has been successfully utilised for an economically profitable project. But such examples are the exception rather than the rule.
The problem is that these land reclamation projects are often executed without a comprehensive plan. This lack of planning has left much of the reclaimed land as nothing more than expanses of dry, uninhabitable desert. In many cases, the land has been abandoned, with heavy vehicles and other equipment left to decay, or repurposed for projects that lack adequate infrastructure to support them. This not only represents a significant waste of resources but also reflects a broader issue of mismanagement within the government’s land reclamation policy.
The implications of this mismanagement are far-reaching. The exodus of people from rural areas to urban centres like the Greater Malé area is a direct consequence of the government’s failure to develop rural land effectively. Islands are becoming deserted. Without the necessary infrastructure, these reclaimed lands offer little incentive for residents to stay, further exacerbating the ruralurban divide.
Additionally, there is a growing concern about corruption and financial mismanagement associated with these projects. Many have pointed out that land reclamation has become a vehicle for financial gain for a select few, rather than a means to benefit the broader population. The sale of reclaimed land at high prices to certain groups, while others receive land for free, has fuelled accusations of corruption and betrayal of public trust.
To address these issues, it is clear that the government’s approach to land reclamation must undergo significant reform. The first step in mitigating the ongoing waste of resources is to ensure that a comprehensive land use plan is developed before any reclamation project begins. This plan should outline the specific purposes for the reclaimed land, including the necessary infrastructure to support its intended use. By incorporating provisions for water, electricity, sewerage, and road construction within the initial project budget, the government can avoid the pitfalls of past projects where land was left undeveloped and unusable.
Furthermore, greater transparency and accountability in the execution of these projects are essential. The government must establish clear guidelines for the allocation and sale of reclaimed
land, ensuring that the process is fair and free from corruption. Independent oversight and audits of land reclamation projects could help prevent the misuse of public funds and ensure that the benefits of these projects are distributed equitably.
There needs to be a shift in the political culture surrounding land reclamation. Rather than using these projects as tools for political gain, the focus should be on the long-term development of the nation. This means prioritising projects that are truly necessary and that have a clear plan for sustainable development. By moving away from politically motivated land reclamation and towards a more strategic and needs-based approach, the Maldives can ensure that its land resources are used effectively and that its citizens benefit from the investments made in their future.
While land reclamation has the potential to significantly contribute to the Maldives’ development, its current execution has been marred by poor planning, mismanagement, and corruption. To reverse this trend and realise the full benefits of these projects, comprehensive reforms are needed. Only then can the reclaimed lands truly serve the people and the nation, rather than remaining as empty promises on the political landscape.
The Maldives government is ramping up efforts to tighten the noose on tax evasion within its lucrative tourism sector. As Parliament reviews new bills proposing significant tax hikes, attention is turning to how some resorts are dodging their fiscal responsibilities through cunning loopholes, and how the Maldives Inland Revenue Authority (MIRA) plans to tackle this rampant issue.
In a bold move to restore financial stability and manage soaring national debt, the government has submitted several bills to Parliament aiming to increase taxes within the tourism sector. Key among these is an amendment to the Goods and Services Tax Act, proposing a rise in the Tourism Goods and Services Tax (TGST) from 16% to 17% starting June 2025. This change is projected to inject an additional MVR 201.9 million into state coffers next year.
Simultaneously, there’s a push to double the Green Tax levied on tourists. Establishments currently charging USD 6 per day would see the rate jump to USD 12, while those charging USD 3 would increase to USD 6. This hike is expected to generate an extra MVR 963.6 million in revenue.
These proposed tax increases are part of a larger strategy to stabilise state finances. However, they also shine a spotlight on the tourism sector’s chronic issue: tax avoidance.
Despite the tourism industry being the backbone of the Maldivian economy, contributing significantly to tax revenue, there’s a dark underbelly of tax evasion that’s hard to ignore. Resorts and tourism establishments have been identified as key players in avoiding their full tax obligations, exploiting legal grey areas to minimise payments of TGST and Green Tax.
Commissioner General of Taxation Hassan Zareer shed light on these challenges in an exclusive interview. “While most resorts are compliant, we’ve encountered instances of aggressive tax planning and potential avoidance schemes,” he revealed. “Identifying these arrangements, especially those involving exclusive deals with foreign tour operators, is particularly challenging.”
One of the major issues is transfer pricing manipulation. Resorts engage in exclusive contracts with foreign tour operators, setting prices that don’t reflect the actual value of the services provided. This allows them to shift profits overseas and declare lower taxable income locally.
Moreover, the absence of destination-based rules in the Goods and Services Tax Act means the Maldives misses out on GST for the final price paid by tourists. “We don’t receive GST on the actual amount tourists pay for their stay, resulting in a lower tax liability compared to the real value of services rendered,” Zareer explained.
Smaller establishments like guesthouses add another layer of complexity. Poor record-keeping and underreporting are common, making it easier for these businesses to slip under the tax radar.
Faced with these cunning tactics, MIRA is not sitting idle. The authority is pushing for legislative changes to close these loopholes and bolster its enforcement capabilities. Plans are underway to amend the Administrative Taxation Act, granting MIRA enhanced powers to collect both tax and non-tax revenue more effectively.
Attorney General Ahmed Usham confirmed that these amendments aim to “streamline the recovery of outstanding state dues,” which currently amount to a staggering MVR 16 billion, including fines.
MIRA has already begun naming and shaming defaulters. Recently, it publicly listed 170 individuals and businesses in the tourism sector who failed to meet their TGST and Green Tax obligations for the second quarter of 2024. These defaulters, each owing more than MVR 100,000 (USD 6,485), were exposed after ignoring multiple reminders and notices.
But is public humiliation enough to deter well-heeled resorts with deep pockets and political clout?
Zareer acknowledges the uphill battle. “Taxpayers who continue to have compliance issues will face further enforcement actions as per our enforcement policy,” he stated firmly. These actions include freezing bank accounts, initiating legal proceedings, and potentially suspending government services to the noncompliant entities.
However, when asked whether MIRA anticipates challenges in enforcing these measures against powerful resorts, Zareer remained diplomatic. “We are considering collective actions at the government level to ensure compliance,” he said, sidestepping direct mention of any political or economic pushback.
While the government’s aggressive stance on tax collection is commendable, there’s a delicate balance to maintain. The tourism industry is the lifeblood of the Maldivian economy, and overzealous taxation could deter investment and drive tourists to competing destinations.
The proposed tax hikes could make holidays in the Maldives less affordable, especially for budget-conscious travellers. Increased airport taxes and doubled Green Tax rates might push tourists to consider other tropical paradises offering better value for money.
Moreover, the industry’s frustration is palpable. Recent regulations requiring all tourism-related revenue to be deposited into local banks have already stirred discontent, with stakeholders citing operational constraints and loss of financial autonomy.
With a mountain of unpaid taxes looming over the nation, some question whether increasing tax rates is the optimal solution. Zareer himself emphasised that recovering outstanding dues is a priority. “Although the outstanding amount is large, a significant portion is attributed to a small number of taxpayers,” he noted. “We’re in contact with these taxpayers to see how the accumulated dues can be recovered while maintaining compliance with future obligations.”
Critics argue that before burdening compliant taxpayers with higher rates, the government should focus on collecting what’s already owed. Tightening enforcement and closing loopholes could potentially recover billions without risking the industry’s competitiveness.
As the bills make their way through Parliament, all eyes are on how the government will balance fiscal recovery with economic growth. The tourism sector’s concerns are valid; without strategic collaboration and fair enforcement, the Maldives risks killing the “goose that lays the golden eggs.”
Zareer remains cautiously optimistic. “MIRA regularly advises the government on gaps in the tax legislation and works with policymakers to close such gaps,” he said. “It’s a regular exercise, not focused on any specific sector.”
His words suggest a willingness to work hand-in-hand with the industry to find solutions that are both effective and equitable. But whether this collaborative spirit will translate into tangible change remains to be seen.
The Maldives stands at a crossroads. Cracking down on tax evasion within the tourism sector is undeniably crucial for the nation’s financial health. However, the government must tread carefully to avoid undermining the very industry that fuels its economy. Closing tax loopholes and enforcing compliance should take precedence over blanket tax hikes that could alienate key industry players and deter tourists.
As resorts continue to exploit legal grey areas to minimise their tax liabilities, MIRA’s resolve will be tested. The authority’s ability to enforce the law impartially, even against the most influential resorts, will be a litmus test for the Maldives’ commitment to financial transparency and fairness.
In the high-stakes game of fiscal policy and economic sustainability, one thing is clear: the Maldives can’t afford to play fast and loose with its golden goose.
GOVERMENT & ECONOMY
The Maldives Inland Revenue Authority (MIRA) has announced significant updates to its Green Tax Regulation and Goods and Services Tax (GST) Regulation, introducing new measures that align with recent legislative changes. Both amendments were published on 25 November 2024 and are now in effect.
The Third Amendment to the Green Tax Regulation stems from legislative changes introduced by the Fourteenth Amendment to the Tourism Act earlier this month. Effective 1 January 2025, the Green Tax (GRT) has been doubled, with an additional exemption granted for toddlers under the age of two years.
Under the new rules, a toddler is exempt from GRT if they have not reached their second birthday by the check-in date. For transitional purposes, toddlers who have not turned two years old by 1 January 2025 but are still checked in at that time will be treated as having checked out at 23:59 on 31 December 2024 and checked back in at 00:00 on 1 January 2025. This ensures the exemption applies to all eligible toddlers, even if their stay overlaps the new rule’s implementation date.
Tourist establishments are now required to maintain passport copies of exempt toddlers to confirm eligibility. The Amendment also formally incorporates the doubling of GRT rates mandated by the Tourism Act.
The 31st Amendment to the GST Regulation introduces changes following the Seventh Amendment to the GST Act. A key update is the reclassification of staff cafes operating within tourist establishments, which cater exclusively to employees. These cafes are now excluded from the definition of tourism sector goods and services, allowing them to register under the general sector GST and apply a tax rate of 8%.
Previously, this exemption was limited to staff shops, while other facilities within tourist establishments were required to register for the higher tourism GST (T-GST) rate. The Amendment aligns registration and tax rules for staff cafes with those of staff shops, with the following provisions:
Registration Requirements: Staff cafes must register separately from other taxable activities, unless they are operated alongside staff shops by the same entity within the same establishment. In such cases, they will be registered together.
Exemption from Output Tax: Supplies provided by the operator of a tourist establishment to a staff cafe will be exempt from GST, provided the cafe is operated by the same entity and registered for GST.
Anti-Avoidance Rules: MIRA has reiterated that anti-avoidance provisions will apply to staff cafes. If deemed to be used for tax avoidance, such as bypassing the higher T-GST rate, the transactions will be taxed at the applicable T-GST rate.
Additionally, the Amendment repeals Tax Ruling TR-2014/G22, incorporating its provisions directly into the GST Regulation without introducing substantive changes.
Both amendments took effect on 25 November 2024. These updates reflect MIRA’s continued efforts to streamline tax regulations and ensure compliance across sectors, particularly in tourism—a key contributor to the Maldivian economy.
The Maldivian Parliament has approved the government’s proposed MVR 56.6 billion budget for 2025, marking a significant step towards addressing fiscal and economic challenges while laying the groundwork for strategic development initiatives. The budget, passed without amendments, received 70 votes in favour, with opposition from 11 members of the Maldivian Democratic Party (MDP).
The approval followed amendments to remove several conditions outlined in the Budget Review Committee’s report. These included requirements for detailed project submissions and quarterly updates on public investments. The changes, proposed by Manadhoo MP Husni Mubarak and supported by Velidhoo MP Mohamed Abbas, saw 68 votes in favour, all opposed by the MDP. Critics argue that these removals reduce fiscal transparency, while proponents suggest they allow greater flexibility in project implementation.
The approved budget projects MVR 39.8 billion in revenue, leaving a deficit of MVR 9.4 billion—equivalent to 7.8% of GDP. The deficit will be financed through a mix of domestic borrowing, foreign budget support, and sovereign fund utilisation. By the end of 2025, government debt is expected to rise to MVR 150 billion, representing 124.8% of GDP.
On the expenditure side, the budget allocates MVR 49.2 billion, including recurrent expenses and capital investments. Strategic sector allocations highlight the government’s focus on healthcare, education, housing, and infrastructure development.
The budget prioritises sectors essential for social well-being and economic growth.
• Health (MVR 8.3 billion): A significant allocation aims to strengthen public healthcare systems and improve access to medical services.
• Economic Affairs (MVR 7.2 billion): Major infrastructure projects, such as the Thila-Male’ bridge and airport developments, are expected to stimulate regional connectivity and economic activity.
• Education (MVR 5.4 billion): Investments in scholarships, teacher salaries, and student loan schemes underline the government’s commitment to human capital development.
• Housing and Community Amenities (MVR 5.2 billion): Funding for housing projects and council block grants seeks to address the demand for affordable housing nationwide.
• Environmental Protection (MVR 2.3 billion): Initiatives in waste and wastewater management, pollution control, and biodiversity protection reflect the country’s commitment to sustainability.
The budget aims to strike a delicate balance between investing in critical sectors and maintaining fiscal responsibility. While the deficit poses challenges, the government views increased spending as a catalyst for economic growth and improved living standards. The focus on infrastructure is expected to have a multiplier effect, fostering private sector investment and job creation. Efforts to enhance tax compliance and broaden the tax base are central to the government’s strategy for restoring fiscal sustainability. However, critics have raised concerns over the removal of mechanisms that could improve transparency and accountability in public spending.
The Maldives’ 2025 budget reflects an ambitious vision for economic and social development. Strategic investments in infrastructure, education, and healthcare are expected to lay the foundation for a prosperous future. Yet, the rising debt levels underscore the need for prudent fiscal management and effective policy implementation.
As the Maldives navigates its economic challenges, the success of this budget will depend on sustained efforts to strengthen fiscal discipline, enhance revenue collection, and ensure that investments translate into tangible benefits for the nation. With a clear roadmap for development, the 2025 budget serves as a critical instrument for shaping the Maldives’ trajectory in the years ahead.
The Maldives is facing a notable challenge within its crucial tourism sector. According to the latest Economic Update from the Maldives Monetary Authority (MMA) for July 2024, while tourist arrivals have seen a slight increase, there has been a significant decline in resort bednights—a key metric for the industry. This trend poses potential risks to the broader Maldivian economy, which relies heavily on tourism as a primary source of revenue.
In June 2024, the Maldives welcomed 123,284 tourists, marking a modest 2% increase compared to the same month in 2023. However, this increase in arrivals has not translated into a corresponding rise in the number of nights tourists are spending in the country. Total tourist bednights for June 2024 dropped by 9% year-on-year, driven largely by a 32% decline in guesthouse bednights and a 4% decline in resort bednights.
This divergence between arrivals and bednights is a worrying sign for the Maldives’ tourism industry. Resorts, which are the backbone of the country’s luxury tourism market, saw a significant drop in occupancy rates, declining from 43% in June 2023 to 39% in June 2024. This reduction in bednights, despite an increase in the number of visitors, suggests that tourists are either shortening their stays or opting for less expensive accommodation options.
The decline in resort bednights is particularly concerning given the critical role that tourism plays in the Maldivian economy. The tourism sector is not only a major source of employment but also a significant contributor to the country’s GDP and foreign exchange earnings. Reduced resort occupancy can lead to lower revenues for resort operators, which in turn could impact the wider economy through decreased spending on goods and services, potential job losses, and reduced tax revenues.
Moreover, the drop in resort bednights during the peak travel season raises questions about the sustainability of current tourism strategies. With resorts typically commanding higher prices than guesthouses, any sustained decline in resort occupancy could force operators to lower prices or offer more promotions, potentially reducing profit margins and affecting the overall financial health of the sector.
Several factors could be contributing to this decline in bednights. One possibility is the global economic environment, where inflation and economic uncertainty might be leading travellers to shorten their vacations or seek out more budget-friendly options. Additionally, the increase in operational bed capacity—1,299 new beds compared to June 2023—could have diluted occupancy rates across the board, making it harder for resorts to maintain high occupancy levels.
The growth in competition from other tropical destinations might also be playing a role. Countries in Southeast Asia and
the Caribbean, for example, have been ramping up their tourism offerings, potentially drawing visitors away from the Maldives. Additionally, the Maldives’ reliance on a few key source markets, such as China, Russia, India, and European countries, means that any downturn in these markets can have an outsized impact on the local tourism industry.
To address this decline, stakeholders in the Maldivian tourism industry may need to rethink their strategies. Diversifying the tourism market to attract visitors from new regions, improving marketing efforts to highlight the unique experiences offered by Maldivian resorts, and investing in enhancing the overall value proposition could help in reversing the trend.
Additionally, exploring sustainable tourism practices and offering more tailored, exclusive experiences might attract high-end travellers willing to spend more and stay longer. Strengthening partnerships with global travel agencies and online platforms could also help boost visibility and appeal to a broader audience.
The decline in resort bednights in June 2024 is a concerning development for the Maldives’ tourism sector, particularly given its central role in the national economy. While tourist arrivals continue to grow, the reduction in the length of stay at resorts highlights underlying challenges that need to be addressed to ensure the continued success and sustainability of the industry. By adapting to the evolving preferences of global travellers and enhancing the appeal of Maldivian resorts, the country can work to reverse this trend and secure its position as a premier luxury destination.
Decreasing Occupancy Rates: An Underutilised Capacity
The Maldives is at a critical juncture in its tourism strategy. Despite a decade-long surge in tourist arrivals, the nation now faces declining occupancy rates and a proliferation of unfinished resort projects. This scenario demands a strategic pivot: prioritising the completion of existing resorts over the continuous development of new ones. Such a shift is crucial not only for economic efficiency but also for environmental stewardship and sustainable growth.
The influx of tourists to the Maldives has been consistently rising, yet this positive trend is overshadowed by a troubling decline in occupancy rates. In 2013, the occupancy rate was a robust 70.9%, but by 2023, it had dwindled to 57.6%. This stark drop indicates that the burgeoning bed capacity is not being fully utilised. The operational bed capacity has increased from 28,000 in 2013 to 61,560 in 2023, a substantial rise that has not been matched by a proportional increase in occupancy. This misalignment between supply and demand raises significant concerns about the economic efficiency of continuing to build new resorts. Instead of spreading resources thin by initiating new projects, it would be more prudent to optimise the existing capacity to enhance overall profitability.
Economic Efficiency: Maximising Existing Investments
Focusing on completing the numerous unfinished resort projects across the Maldives is likely to be more cost-effective than starting new developments. The financial implications of leaving projects incomplete are considerable, involving sunk costs that yield no returns. By channelling investment into completing these projects, the Maldives can achieve faster returns on investment and ensure more efficient resource allocation. This approach not only maximises the utilisation of existing infrastructure but also stabilises the market by avoiding the pitfalls of over-saturation. The current trend of declining occupancy rates despite increasing bed capacity shows the need for a strategic reassessment. Prioritising the completion of existing projects ensures that investments are not wasted and that the tourism sector remains robust and profitable.
The natural beauty of the Maldives is its most valuable asset, drawing tourists from around the globe. However, the relentless push for new resort developments poses significant risks to its delicate ecosystems. The construction process often leads to habitat destruction, increased pollution, and other ecological disturbances that threaten the very attractions tourists come to see. By halting the expansion of new resorts and focusing on completing existing ones, the Maldives can mitigate these environmental impacts. This approach allows for more sustainable tourism practices that preserve the nation’s pristine beaches, coral reefs, and marine life. Protecting these natural wonders is not just an ethical responsibility but also a pragmatic strategy to ensure the long-term viability of the tourism industry. Sustainable development practices enhance the Maldives’ reputation as an eco-friendly destination, attracting tourists who are increasingly conscious of their environmental footprint.
strategic focus on the completion and enhancement of existing resorts can significantly elevate the tourist experience in the Maldives. High-quality, well-maintained resorts are more likely to attract repeat visitors and garner positive reviews, which in turn can drive higher occupancy rates. This focus on quality over quantity ensures that the Maldives remains synonymous with luxury and excellence. Tourists today seek unique, memorable experiences rather than generic offerings, and a well-maintained, high-quality resort can provide just that. Enhancing existing resorts with better amenities, personalised services, and unique experiences can create a competitive edge in the global tourism market. This approach not only satisfies current tourists but also builds a loyal customer base, ensuring steady future revenues.
The COVID-19 pandemic dealt a severe blow to the global tourism industry, and the Maldives was no exception. Tourist arrivals plummeted from 1.7 million in 2019 to just 500 thousand in 2020, highlighting the vulnerability of the sector. In this context, a cautious and calculated approach to recovery is imperative. Investing in the completion and optimisation of existing resorts offers a quicker and more sustainable path to economic revitalisation than embarking on new projects. This strategy allows for immediate utilisation of resources and infrastructure, facilitating a faster turnaround in boosting the tourism economy. It also provides an opportunity to incorporate lessons learned during the pandemic, such as the importance of health and safety measures, into the design and operation of resorts. By focusing on building back better, the Maldives can create a more resilient and sustainable tourism sector.
Emphasising the completion of existing resorts aligns with the principles of sustainable tourism, ensuring that the growth in tourism does not come at the expense of the environment and local communities. Sustainable tourism practices involve managing resources to meet the needs of present tourists while protecting and enhancing opportunities for future generations. This approach includes reducing the ecological footprint of tourism activities, supporting local economies, and preserving cultural heritage. By prioritising the completion of existing projects, the Maldives can foster a tourism industry that is environmentally responsible, socially inclusive, and economically viable. This commitment to sustainability enhances the Maldives’ global reputation and attracts a discerning tourist demographic that values ethical and responsible travel.
The Maldives stands at a critical crossroads in its tourism strategy. By halting the expansion of new resorts and focusing on the completion and optimisation of existing ones, the nation can address the challenges of declining occupancy rates, ensure economic efficiency, minimise environmental impacts, and enhance the overall quality of the tourist experience. This strategic shift is not only essential for the immediate recovery of the tourism sector post-pandemic but also for the long-term sustainability and prosperity of the Maldives. Embracing this approach will safeguard the natural beauty and cultural heritage of the Maldives, ensuring that it remains a premier destination for future generations. Pandemic Recovery: Building Back Better
In the global fight against climate change, a notable shift is occurring: many countries are increasingly focusing on adaptation and mitigation rather than prevention. This shift is particularly alarming for low-lying small island developing states (SIDS) such as the Maldives, where rising sea levels and extreme weather events pose existential threats. The global politics surrounding climate change, shaped largely by the interests of major polluting nations, leaves countries like the Maldives in a precarious position, forcing them to confront the consequences of a crisis they did little to cause.
The emphasis on adaptation over prevention is not merely theoretical but is reflected in the actions and policies of various nations. For instance, countries like the United States, Australia, and India have made significant investments in climate adaptation strategies. In the United States, federal spending on disaster recovery and climate resilience projects has increased substantially, with a focus on building infrastructure that can withstand the impacts of climate change rather than aggressively reducing emissions. Similarly, Australia has prioritised adaptation measures such as coastal defences and drought management over significant emission cuts, especially under previous administrations that have been criticised for their lack of commitment to global climate agreements.
India, while also pursuing renewable energy initiatives, has focused heavily on climate adaptation, particularly in agriculture and water management, to cope with the impacts of climate change on its vast and vulnerable population. These cases illustrate a broader trend where adaptation, rather than prevention, is becoming the dominant approach, driven by political and economic realities that make aggressive emission reductions challenging.
For the Maldives, a nation with an average elevation of just 1.5 meters above sea level, the shift towards adaptation by major polluting countries presents a grave challenge. The Maldives is particularly vulnerable to the impacts of climate change, including rising sea levels, increased storm intensity, and coral bleaching, and drastic changes in the monsoons. However, the international response to climate change, characterised by inadequate commitments from major polluters, exacerbates the vulnerability of small island states.
The Paris Agreement, while a milestone in international climate diplomacy, has seen uneven commitment levels. The withdrawal and lacklustre participation of key nations have undermined global efforts to limit temperature rise to 1.5°C above pre-industrial levels, a threshold critical for the survival of low-lying nations like the Maldives. Despite the Maldives’ negligible contribution to global greenhouse gas emissions, it faces some of the most severe consequences. This disparity highlights the injustice at the heart of global climate politics and reinforces the need for the Maldives to prioritise adaptation strategies.
Given the global trend towards adaptation, the Maldives must focus on strategies that enhance its resilience. Coastal protection is a critical area where the Maldives has already undertaken significant projects, such as the construction of sea walls and artificial islands, to protect against rising sea levels. The capital city, Malé, is encircled by a sea wall that has become a model for other vulnerable regions. However, these efforts must be scaled up and expanded to other atolls. Climate-resilient infrastructure is another key area of focus. As extreme weather events become more frequent, it is essential that the Maldives invest in infrastructure that can withstand these conditions. This includes elevating buildings, constructing flood-resistant housing, and ensuring that critical facilities such as hospitals and power plants are protected from climate impacts. Additionally, the Maldives must diversify its economy. The nation’s heavy reliance on tourism, which is highly susceptible to climate change, poses significant risks. Diversifying into sectors such as renewable energy and sustainable fisheries can reduce this vulnerability and create new economic opportunities.
Furthermore, the Maldives should strengthen its international advocacy efforts. As a small nation, the Maldives has been a vocal advocate for stronger global climate action. Continuing to lead initiatives within forums such as the Alliance of Small Island States (AOSIS) can help maintain pressure on major polluters to fulfil their commitments.
For adaptation strategies to be effective, the Maldives requires significant financial support. Unfortunately, global climate finance directed towards SIDS like the Maldives has been woefully inadequate. Although SIDS contribute less than 1% of global greenhouse gas emissions, they receive only a small fraction of global climate finance. In 2019, out of the USD 100 billion pledged to developing countries, only USD 1.5 billion was directed towards SIDS. This level of support is grossly insufficient given the scale of the challenges these nations face.
To ensure that SIDS like the Maldives can implement necessary adaptation measures, climate finance must be strategically and effectively directed. This includes not only increasing the overall amount of funds available but also ensuring that these funds are accessible and targeted to the specific needs of SIDS. This can involve prioritising projects that enhance coastal protection, build resilient infrastructure, and diversify economies. Additionally, mechanisms such as debt-for-climate swaps, where a portion of national debt is forgiven in exchange for commitments to invest in climate resilience projects, offer innovative ways to finance adaptation.
The Green Climate Fund (GCF), which is the largest multilateral climate fund, has been pivotal in supporting adaptation projects in SIDS. However, the process of accessing these funds often remains cumbersome, with many SIDS lacking the capacity to navigate complex application procedures. To address this, the international community must streamline the processes and build the capacity
of SIDS to secure and effectively utilise climate finance.
While adaptation is essential, it is equally critical to stress that prevention should not be abandoned. The shift towards adaptation might seem pragmatic in the short term, but it is ultimately a reactive approach that does not address the root causes of climate change. Prevention, particularly through the reduction of greenhouse gas emissions, remains the most effective long-term strategy to combat climate change and protect vulnerable nations like the Maldives.
Prevention is vital because adaptation has its limits. There are thresholds beyond which adaptation becomes increasingly difficult or even impossible. For the Maldives, this could mean reaching a point where rising sea levels and extreme weather events render large parts of the country uninhabitable, regardless of how much adaptation has been undertaken. By focusing solely on adaptation, we risk locking ourselves into a future where the impacts of climate change are so severe that they cannot be managed.
Moreover, prevention is a matter of global justice. The Maldives and other SIDS contribute the least to global emissions, yet they are among the most affected by climate change. A failure to commit to prevention is a failure to uphold the principles of fairness and responsibility that underpin international climate agreements. It is essential that the international community does not lose sight of the need to reduce emissions and limit global warming to levels that allow all nations, especially the most vulnerable, to survive and thrive.
The economic case for prevention is also compelling. While adaptation measures can be costly, the long-term costs of unmitigated climate change are far greater. Studies have shown that the economic impacts of climate change, including damage to infrastructure, loss of agricultural productivity, and increased health costs, will far exceed the costs of taking preventive action today. For countries like the Maldives, which depend heavily on tourism and fisheries, the economic losses from climate change could be devastating.
The preference for adaptation over prevention reflects a broader aspect of human nature. Historically, humans have excelled at adapting to immediate challenges rather than preventing future ones. This tendency is evident in how societies have responded to environmental changes over millennia. From the development of agricultural practices in response to climate shifts to the construction of flood defences in response to rising water levels, human ingenuity has often focused on adapting to, rather than preventing, environmental changes.
However, while adaptation is essential, it is not a panacea. For the Maldives, adaptation must go hand in hand with continued efforts to advocate for global prevention measures. The survival of the Maldives depends not only on its ability to adapt but also on the international community’s willingness to address the root causes of climate change.
The global shift towards adaptation rather than prevention presents significant challenges for small island states like the Maldives. As major polluters opt for strategies that allow them to live with the impacts of climate change, countries like the Maldives must invest heavily in adaptation to ensure their survival. Coastal protection, resilient infrastructure, economic diversification, and strong international advocacy are critical components of this strategy. While adaptation reflects a historical tendency of humans to respond to immediate threats, the Maldives must continue to push for global action that addresses the root causes of climate change.
Prevention remains the most effective strategy for securing a livable future for all nations. The international community cannot afford to abandon efforts to reduce emissions and limit global warming. The Maldives, while adapting to the realities of climate change, must also continue to lead the charge for global prevention efforts. In a world where the big polluters are not as committed as they should be, the Maldives must navigate this complex landscape with resilience, innovation, and a steadfast commitment to the principles of fairness and justice that demand collective action against climate change.
ENVIRONMENT & CLIMATE CHANGE
The Managing Director of the State Trading Organisation (STO), Shimad Ibrahim, has announced the company’s ambitious goal to become carbon-neutral by 2050. Several initiatives have been implemented to achieve this objective, focusing on eco-friendly business strategies and operations.
Speaking at the Annual General Meeting (AGM) held in the Neeri Lounge of the Noovilu Seaplane Terminal at Velana International Airport (VIA), Shimad Ibrahim affirmed that reaching carbon neutrality is both a realistic and achievable target. He assured shareholders that STO will adhere to corporate governance policies and disclosed plans to reduce the emission of harmful gases from operations by 25%.
Shimad highlighted ongoing efforts to align the company’s transportation methods with the guidelines of the International Maritime Organisation (IMO). Additionally, he underscored the measures being taken to ensure that home improvement products, such as air conditioners and refrigerators sold by STO, meet the standards set by the Ministry of Climate Change, Environment and Energy. Currently, the majority of these products comply with the Hakatheri standards.
The Hakatheri programme, initiated by the Ministry of Climate Change, Environment and Energy, aims to ensure that electrical appliances sold in the Maldives are high-quality products adhering to uniform standards. This programme is part of the Strengthening Low Carbon Energy Island Strategies Project, implemented in collaboration with the United Nations Environment Programme (UNEP) and supported by the Global Environment Facility (GEF). The programme’s goals include reducing greenhouse gas emissions from buildings, minimising energy wastage, and increasing the use of eco-friendly energy systems.
In 2022, STO began affixing the Hakatheri label, which indicates the energy consumption of electrical appliances, to air conditioners sold by the company. This move aligns with STO’s broader commitment to environmental sustainability and supports the national effort to promote energy efficiency.
As STO continues its journey towards carbon neutrality, the company remains dedicated to integrating sustainable practices across all aspects of its operations, demonstrating leadership in the transition to a greener economy.
Residents of Malé City have seen a significant rise in their electricity bills, creating a financial burden for many households. This situation illustrates the urgent need for sustainable and long-term solutions to the country’s energy challenges. While the State Electric Company (STELCO) has initiated schemes like Avikatha to encourage the use of rooftops for solar installations, more comprehensive measures are necessary to transition to renewable energy and ensure economic and environmental sustainability.
The densely populated Malé relies heavily on state-subsidised utility service for its electricity. These subsidies, while providing temporary relief, are not a sustainable long-term solution. They drain state resources that could be better invested in alternative energy initiatives. Moreover, the reliance on fossil fuels for electricity generation exacerbates environmental degradation and leaves the country vulnerable to global fuel price fluctuations.
STELCO’s Avikatha scheme is a commendable initiative that allows residents to rent their rooftops for solar panel installations. The power generated from these panels is fed directly into the STELCO grid, and participants receive a monthly rent based on the number and capacity of the panels installed. This scheme, available to residents in various atolls including Aa. Atoll, Adh. Atoll, V. Atoll, and Kaafu Atoll, opens opportunities for domestic, business, and government customers to contribute to sustainable energy production. However, it does not directly reduce electricity bills for consumers but helps increase the overall supply of renewable energy in the grid.
While Avikatha is a positive start, additional incentives and measures are needed to accelerate the adoption of renewable energy. The government could offer subsidies or grants for the initial installation costs of solar panels, making the transition more affordable for consumers. Low-interest loans specifically designed for renewable energy installations could also be provided. Implementing tax credits or rebates for households and businesses that invest in renewable energy systems can make these options more financially attractive. Educating the public on the long-term benefits of solar energy through targeted campaigns can increase adoption rates. Highlighting the environmental benefits and potential savings on electricity bills can motivate more residents to participate.
Establishing feed-in tariffs can guarantee a fixed premium price for the electricity generated by residential solar systems and fed back into the grid. This policy has been successful in various countries, incentivising investment in renewable energy. Implementing net metering policies that allow consumers to offset their electricity bills with the power they generate can encourage the use of personal solar systems. Any excess power produced can be sold back to the grid. Investing in research and development for advanced renewable energy technologies can reduce costs and improve efficiency. Partnerships with international renewable energy experts can bring cutting-edge solutions to the Maldives.
Subsidising solar energy can reduce overall electricity costs for consumers. Over time, as more households adopt solar energy, the demand for state-subsidised electricity will decrease, allowing the government to save money that can be redirected to other critical areas such as healthcare and education. Solar energy is a clean, renewable source of power that reduces greenhouse gas emissions. This aligns with global sustainability goals and the Maldives’ commitment to combating climate change, a critical issue for this low-lying island nation. Developing local solar energy infrastructure reduces dependence on imported fuels, enhancing energy security and stability.
The Maldives can draw valuable lessons from the global stage, where several countries have successfully transitioned to renewable energy. In Germany, the implementation of the Renewable Energy Sources Act (EEG) in 2000, which introduced feed-in tariffs, has been a cornerstone of the country’s renewable energy success. The policy guaranteed fixed payments for renewable energy producers, making it financially attractive to invest in solar and wind power. As a result, Germany saw a massive increase in renewable energy installations, leading to substantial reductions in electricity costs and significant contributions to the grid. The Maldives could adopt similar feed-in tariffs to encourage more households and businesses to generate their own renewable energy and sell excess power back to the grid, providing a steady income stream for individuals and boosting the overall energy supply.
Australia offers another compelling example, particularly through its use of solar rebates and incentives. The Australian government provides significant rebates for the installation of solar panels, reducing the upfront cost for consumers. Additionally, the introduction of net metering policies allows households to offset their electricity bills with the power they generate. The combination of financial incentives and regulatory support has led to widespread adoption of solar energy across the country. The Maldives could replicate this approach by offering substantial subsidies and implementing net metering policies to make solar energy more accessible and financially viable for its residents.
To address the rising electricity bills and support the transition to renewable energy, the Maldivian government can enhance building codes to ensure new constructions are energy efficient. Implementing both prescriptive and performance-based codes can set minimum energy performance standards for components like insulation, windows, and HVAC systems, reducing overall energy consumption. Additionally, adopting “stretch” codes, which are more stringent and can be incrementally enforced, would allow builders to gradually adapt to higher efficiency standards. Government incentives, such as subsidies, grants, and low-interest loans, can make these upgrades financially viable, while robust stakeholder engagement and training programs ensure compliance and address technical challenges
The rise in electricity bills in Malé City is a wake-up call for the Maldives to rethink its energy strategy. By expanding incentives and support for renewable energy solutions, particularly solar power, the government can promote a more sustainable and economically viable energy future. The Maldives, which receives an average of nine hours of sunlight daily, is ideally positioned to leverage solar power extensively. This transition will not only help in reducing electricity costs and environmental impact but also position the Maldives as a leader in renewable energy adoption, ensuring a resilient and sustainable future for its citizens.
Brain drain, the emigration of highly skilled professionals, poses significant economic challenges for the Maldives. The departure of doctors, engineers, educators, and other talented individuals undermines the country’s human capital, affecting its development trajectory. The economic consequences of this phenomenon are profound, as it directly impacts the availability of skilled labour essential for national growth and development.
The Maldives has experienced notable levels of brain drain, which has significant economic implications. The loss of skilled professionals leads to a shortage of critical expertise in various sectors, particularly in healthcare, education, and technology. This shortage hampers the country’s ability to innovate and improve its infrastructure, ultimately slowing economic growth. According to the Global Economy’s Human Flight and Brain Drain Index, the Maldives has seen fluctuating levels of brain drain over the years, with an average index score of 6.23 from 2007 to 2023. This indicates a relatively high level of skilled emigration compared to the global average of 5.17 in 2023. The most recent data from 2023 shows a decline to 5.2 index points, suggesting some improvements but still highlighting the ongoing issue.
The economic cost of brain drain includes not only the immediate loss of skilled labour but also the long-term impacts on productivity and innovation. For instance, the healthcare sector struggles with a persistent shortage of medical professionals, leading to increased reliance on foreign doctors and specialists. This reliance increases healthcare costs and limits the development of a robust, self-sufficient medical infrastructure.
To combat brain drain, the Maldivian government and private sector must implement comprehensive strategies that address both the root causes and the symptoms of this issue. One crucial strategy involves enhancing educational opportunities within the country. Investing in higher education and vocational training can reduce the need for students to seek education abroad, where they may eventually settle permanently. Establishing partnerships with international universities to provide local campuses or online degrees can also be beneficial. Such initiatives can create a robust educational framework that keeps talent within the country while ensuring they receive quality education.
Improving working conditions is another essential measure. Competitive salaries, better working conditions, and career development opportunities are crucial in retaining skilled professionals. This includes not only financial incentives but also ensuring a supportive and collaborative work environment. When professionals feel valued and see clear career progression opportunities, they are more likely to stay.
Strengthening research and development (R&D) is vital. By fostering a strong R&D culture, the Maldives can create an environment that encourages innovation and professional growth.
Government grants and private sector investments in R&D can provide professionals with exciting and rewarding career paths at home. This not only retains talent but also drives national innovation and economic growth.
Policy reforms play a crucial role in addressing brain drain. Implementing policies that encourage return migration, such as tax incentives and reintegration programmes for Maldivians abroad, can help reverse the brain drain trend. Additionally, facilitating easier entry for expatriate Maldivians to return and work in their home country can be an effective strategy. These policies should be designed to make the transition back to the Maldives as smooth and attractive as possible.
International collaboration can provide Maldivian professionals with opportunities to work on global projects while remaining based in the Maldives. Engaging in such collaborations can help retain talent by offering the best of both worlds: international experience and local stability. This can be particularly effective in fields like technology and research, where global partnerships can significantly enhance career prospects.
Despite these strategies, the Maldives faces inherent challenges in retaining talent due to its small economy and limited resources. The allure of better opportunities, higher salaries, and improved living standards abroad can be difficult to counteract. Moreover, the geographical isolation of the Maldives can deter professionals seeking diverse career opportunities and professional networks.
The reality is that while some brain drain is inevitable, creating a robust system that encourages cyclical migration, where professionals gain experience abroad and return home, can mitigate some of the negative impacts. Ensuring that returning professionals find a supportive environment and opportunities to apply their skills is essential for long-term sustainability.
The economic impact of brain drain on the Maldives is significant, affecting various sectors and impeding overall development. However, through strategic investments in education, policy reforms, and international collaborations, the Maldives can create an environment conducive to retaining and attracting skilled professionals. While it may not be possible to completely halt brain drain, a holistic approach can significantly reduce its negative impacts and foster a more sustainable economic future for the country. This comprehensive strategy not only aims to retain talent but also to create a thriving environment where professionals can grow and contribute to the nation’s development.
BANKING & FINANCE
In the rapidly evolving global economy, financial literacy has become an essential skill for both individual well-being and national economic stability. The Maldives, an upper-middle-income country heavily dependent on tourism, faces unique economic challenges. Enhancing financial literacy across the population is crucial for building economic resilience and empowering citizens to make informed financial decisions. This report explores the current state of financial literacy in the Maldives, identifies key challenges, and outlines strategic interventions to improve financial education and awareness.
Despite a high overall literacy rate, financial literacy in the Maldives remains underdeveloped. Recent assessments highlight a significant gap in the population’s understanding of basic financial concepts such as budgeting, saving, investing, and managing debt. This lack of financial knowledge leaves many Maldivians vulnerable to economic instability, especially during financial downturns. The need for financial education is increasingly recognized as essential for fostering a more resilient economy.
Several unique challenges hinder the promotion of financial literacy in the Maldives:
Limited Educational Programs: Financial education is not systematically included in the national school curriculum. Consequently, many young Maldivians grow up without essential financial management skills, impacting their ability to manage personal finances effectively as adults. Incorporating financial literacy into school programs is crucial for early skill development.
Cultural Attitudes: Cultural norms often discourage open discussions about money and financial matters. This social stigma prevents many individuals from seeking advice or education on financial planning, leading to a lack of financial awareness and preparedness. Changing these cultural attitudes is vital for promoting financial literacy.
Access to Financial Services: Access to financial services is limited, particularly in remote atolls. Many Maldivians do not have practical experience with financial systems, hindering their ability to develop financial literacy through engagement with financial products and services. Expanding access to these services can enhance financial knowledge.
Economic Vulnerabilities: The Maldivian economy’s heavy reliance on tourism makes it highly susceptible to external shocks. Economic instability can exacerbate financial insecurity among the population, underscoring the need for robust financial literacy to mitigate such risks. Diversifying the economy could reduce these vulnerabilities.
Integrating Financial Education in Schools: One of the most effective strategies is to introduce financial literacy into the national education curriculum. Early education on financial topics can equip young Maldivians with essential skills and knowledge, preparing them for financial challenges later in life.
Community-Based Programs: Collaborations between local
governments and non-governmental organizations (NGOs) can lead to the development of community-based financial education programs. These programs can be tailored to address the specific needs and challenges of different communities, making financial education more accessible and relevant.
Partnerships with Financial Institutions: Financial institutions can play a crucial role by offering educational workshops, seminars, and resources to the public. These institutions can leverage their expertise to educate the public about financial products, responsible borrowing, and investment strategies, thereby enhancing overall financial literacy.
Leveraging Technology: Digital platforms can significantly enhance the reach and effectiveness of financial literacy programs. Mobile apps, online courses, and social media campaigns can provide engaging and accessible financial education resources to a broader audience, facilitating widespread financial literacy.
Government Initiatives: Government-led initiatives, such as national financial literacy campaigns and policy reforms, can create a supportive environment for financial education. Policies that encourage saving, transparent financial practices, and consumer protection can promote a culture of financial responsibility and awareness.
Empowering Maldivians through financial literacy is a critical step towards building a resilient and economically stable nation. Addressing the current gaps in financial education and implementing targeted strategies can cultivate a financially savvy population capable of making informed decisions. This journey towards financial empowerment requires a collective effort from the government, educational institutions, financial organizations, and the community. With the right initiatives, the Maldives can enhance financial literacy, paving the way for sustained economic growth and stability.
By fostering a culture of financial literacy, the Maldives can ensure that its citizens are better equipped to navigate the complexities of the modern economy, ultimately contributing to the nation’s longterm prosperity and resilience.
The Maldives Monetary Authority (MMA) has unveiled a proposed Foreign Exchange (Forex) Bill, designed to overhaul the existing Forex Regulation introduced on 1st October 2024. The bill, announced on 26th November 2024, seeks to enhance oversight and compliance mechanisms for foreign currency transactions across key sectors.
If enacted, the bill will take effect from 1st January 2025, with the current regulation remaining in force until then.
The bill mandates specific conversion requirements for businesses earning substantial foreign currency revenue.
• Category A Tourism Establishments, such as resorts, integrated resorts, private islands, and similar entities, must exchange or convert an amount equivalent to US$500 multiplied by the number of tourists in a particular month.
• Category B Tourism Establishments, including guesthouses, hotels on inhabited islands, and tourist vessels, are required to convert US$25 per tourist.
• Businesses generating at least US$20 million annually in foreign currency must convert up to 25% of their monthly foreign currency income into Maldivian Rufiyaa (MVR), as determined by the regulations.
Exceptions apply for certain tourist categories, such as children under two years old, those staying for less than 24 hours, and guests on complimentary stays.
All tourism goods and service providers registered with the Maldives Inland Revenue Authority (MIRA), as well as businesses earning over US$20 million annually, must:
• Register with the MMA within 10 days of the bill becoming law, if not already registered.
• Deposit monthly realised foreign currency sales into a Maldivian bank account by the 28th of the third month following the relevant transaction period.
• Maintain records for five years from the date the goods or services were provided.
While the bill reinforces the requirement for domestic transactions to be conducted in MVR, exceptions include:
• International transactions.
• Payments to government entities mandated to be in foreign currency.
• Tourism-related transactions, financial services, remittancerelated transactions, and foreign currency-related shareholder dividends, staff salaries, and expenses.
• Sale of shares by foreign currency-earning businesses.
• The MMA may also provide additional exemptions through future regulations.
The bill enhances the MMA’s enforcement powers, including collaboration with MIRA for investigations, leveraging MIRA’s extensive authority under the Tax Administration Act. Noncompliance will attract significant fines:
• Conversion Obligations: 0.1% of the amount due for conversion, with daily penalties of up to 0.1% until compliance.
• Deposit Obligations: 0.05% of the amount due for deposit, with daily penalties of up to 0.05% until compliance.
• Other Breaches: Fines ranging from MVR 10,000 to MVR 1,000,000, depending on the severity of the violation.
• As the Maldives prepares for the potential implementation of this legislation, the bill is poised to significantly impact businesses reliant on foreign currency, especially within the tourism sector.
BANKING & FINANCE
As part of ongoing efforts to modernise the financial sector in the Maldives, the RuPay card service has officially been launched, marking an important step towards enhancing cross-border digital payment solutions. The launch took place during President Dr Mohamed Muizzu’s state visit to India and was attended by both President Muizzu and Indian Prime Minister Narendra Modi. This initiative is expected to enhance digital transaction capabilities, streamlining financial operations and fostering stronger economic ties between the two nations.
The introduction of the RuPay card service is seen as a major benefit to Indian tourists visiting the Maldives, a crucial segment of the Maldivian tourism market. Indian travellers will now be able to make seamless payments using their RuPay cards during their stay, making transactions more efficient and accessible. This development is also expected to benefit bilateral trade
by simplifying financial transactions, particularly for small and medium enterprises (SMEs) that rely on smooth payment systems for business operations.
The RuPay service launch is a key component of President Muizzu’s broader financial integration strategy, aimed at introducing global payment solutions to the Maldives. This initiative also complements a recently signed Memorandum of Understanding (MoU) between the Maldives Government and the National Payments Corporation of India (NPCI), which focuses on upgrading payment systems in the Maldives to support modern financial services, including digital payment wallets.
RuPay is India’s domestic card payment network, developed by the National Payments Corporation of India (NPCI) to fulfil the Reserve Bank of India’s (RBI) vision of establishing a card payment system that is accessible, cost-effective, and inclusive. Launched in 2012, RuPay competes with global card networks such as Visa and Mastercard but focuses on serving the Indian market. The network supports various types of transactions, including ATMs, point-of-sale (POS) payments, and e-commerce transactions.
One of RuPay’s key advantages is its affordability, as it offers lower transaction processing fees compared to international card networks. This has made it especially popular among India’s smaller merchants and consumers. With the launch of RuPay in the Maldives, Indian travellers can now enjoy a seamless payment experience while abroad, without having to rely on foreign card networks, making their travel experience smoother.
The introduction of RuPay in the Maldives is poised to bring multiple benefits to the economy. First, the move will likely boost tourism by improving the payment experience for Indian tourists, one of the largest groups of international visitors to the Maldives. As India is a major trading partner, the new service will also make bilateral trade more efficient, with simplified transactions contributing to smoother business operations.
Furthermore, SMEs in the Maldives stand to gain from this development, as the streamlined payment system will allow for easier cross-border trade, particularly in sectors reliant on Indian suppliers. By enabling Indian RuPay cardholders to make direct payments, the initiative enhances the business environment for smaller enterprises that might otherwise face challenges due to currency exchange and payment delays.
Additionally, the collaboration between the Maldives and NPCI is expected to bolster the country’s financial infrastructure, supporting the wider digitalisation of the economy. As more modern financial services are introduced, including digital wallets and contactless payments, businesses and consumers alike will benefit from greater convenience and security in their transactions. Overall, the launch of the RuPay card service is a positive development for both the Maldivian and Indian economies, strengthening their financial ties and providing tangible benefits to businesses and tourists alike. This initiative is set to play a pivotal role in modernising the Maldives’ financial sector, while fostering deeper economic cooperation with India.
On the eastern edge of Hulhumale’, where the first light of day breaks across the Indian Ocean, Renaatus Irumathi Residence stands as a beacon of refined living. This is more than just a collection of apartments; it is an invitation to experience life differently, a home where luxury is not only about elegance and opulence but also about thoughtful design, tranquillity, and connection to nature.
The design philosophy behind Renaatus Irumathi Residence embraces both grandeur and simplicity. The architects have envisioned a place where natural light is not just an afterthought but an integral element, filling each room with warmth and framing expansive views of the ocean. The effect is a space that feels open, bright, and harmonious, an ideal setting for both quiet reflection and vibrant gatherings.
The heart of the residence is its vertical garden, a lush tapestry that weaves through the building’s core, creating a natural sanctuary amid the urban environment. This living, breathing feature is not just about aesthetics. It serves as a community space where residents can pause, breathe, and connect with one another. In a city where green spaces are rare, this is an oasis that fosters wellbeing and a sense of belonging. But the commitment to luxury living goes beyond greenery. The lobby at Renaatus Irumathi is a welcoming space where natural light and modern furnishings create an atmosphere of calm sophistication. It feels more like an extension of your living room than a traditional lobby—a space where you can relax, meet neighbours, or simply enjoy a moment of peace before heading out into the world.
Step outside the lobby, and you find yourself in a dynamic hub of activity. The ground and first floors are home to carefully curated commercial spaces that cater to every need. A high-end café offers a perfect spot to sip on expertly crafted beverages while taking in the serene surroundings. For those who work remotely or need a break from the office, a dedicated co-working space provides a stylish and functional environment to focus, collaborate, and innovate. A convenience store, meanwhile, ensures that residents have quick access to everyday essentials and a selection of gourmet treats without leaving the comfort of their homes. Families will find that Renaatus Irumathi understands their needs as well. The on-site childcare centre is more than just a service; it’s a thoughtfully designed space that supports children’s growth and development. With an emphasis on safety and creativity, it provides a nurturing environment where young minds can thrive
while parents enjoy the comfort of knowing they are close by. For entertainment, Renaatus Irumathi has something special. The private family theatre offers a cinema-quality experience, allowing residents to enjoy the latest films or revisit classic favourites without leaving their building. It’s the kind of amenity that turns an ordinary evening into something memorable—a space that elevates everyday living.
The crown jewel of the residence is perhaps its rooftop. Here, a world of relaxation and recreation awaits. The infinity pool stretches toward the horizon, inviting residents to swim as if they could reach the edge of the world. Sun loungers, surrounded by greenery, provide the perfect place to soak up the sun or unwind with a book. Nearby, a well-equipped gym offers more than just fitness; it offers an experience.
With panoramic ocean views and cutting-edge equipment, the gym encourages a holistic approach to well-being that balances physical fitness with mental clarity. For those who prefer more tranquil pursuits, the rooftop terrace and event space offer a secluded haven amidst the urban skyline. It’s a place for gatherings, celebrations, or simply enjoying a quiet moment with a stunning backdrop.
Inside the apartments, every detail speaks of quality and craftsmanship. Spacious layouts, open floor plans, and expansive windows create a bright, airy atmosphere that feels both luxurious and welcoming. The design is minimalist yet rich, focusing on clean lines, uncluttered spaces, and natural elements that bring a timeless elegance to each home. The duplex apartments, with
their double-height ceilings and expansive views, offer a blend of openness and privacy, perfect for those who seek a unique living experience. Meanwhile, the penthouses provide a world of their own, with generous outdoor living areas and panoramic vistas that redefine the idea of home.
Balconies are more than just outdoor spaces here; they are seamless extensions of the living areas, ideal for a morning coffee or an evening of relaxation as the sun sets over the ocean. Each balcony is designed to be a private retreat, an intimate space where the indoor and outdoor worlds merge effortlessly.
At Renaatus Irumathi, even the practical aspects of life are considered with care. Secure and ample parking ensures convenience, while a dedicated waste management system keeps the residence pristine. A post box service on the ground floor adds another layer of ease to daily living, ensuring that even the smallest details are catered to.
This is Renaatus Irumathi Residence—a place where luxury meets tranquillity, where every detail is designed to enhance the experience of living. It’s more than just a home; it’s a new way of life on the shores of Hulhumale’. Here, each day begins with the promise of something extraordinary, and every moment is an opportunity to experience the finer things. Step into a world where luxury is redefined, and make Renaatus Irumathi your sanctuary by the sea.
President Dr Mohamed Muizzu’s recent state visit to India from 6th to 10th October 2024 marked a significant milestone in Maldives-India relations. Stepping onto Indian soil for the first time as President, Dr Muizzu’s engagement with Indian leaders underscored the importance of a robust alliance between the two nations. This visit highlighted why maintaining a close relationship with India is not just beneficial but essential for the Maldives’ future.
The Maldives and India share a rich history woven through centuries of cultural exchange and mutual assistance. India’s swift military intervention during the 1988 coup attempt in the Maldives is a testament to the deep-rooted alliance between the two nations. When the 2004 tsunami devastated the Maldives, India was among the first to offer aid, providing crucial support in rescue and rehabilitation efforts. Similarly, during the 2014 Malé water crisis, India airlifted drinking water to the island nation, reinforcing its role as a reliable neighbour.
Economically, India has been instrumental in the Maldives’ development. As of 2023, Indian tourists constituted one of the largest groups visiting the Maldives, significantly bolstering its tourism-dependent economy, especially during the low season. Indian investments have also flowed into various infrastructure projects, from building roads and housing to enhancing healthcare facilities, often facilitated through grants and credit lines.
The ascent of President Muizzu brought about a recalibration of the Maldives’ foreign policy, with a pronounced emphasis on national sovereignty and diversifying international partnerships. This shift led to tensions over the presence of Indian military personnel and the reconsideration of certain bilateral agreements. Speculations arose about the Maldives balancing its relations between India and China, especially when President Muizzu’s initial foreign visits did not include India, deviating from established tradition.
However, recognising the indispensability of India as a regional partner, efforts were made to mend and strengthen ties. The visit of India’s Minister of External Affairs, Dr Subrahmanyam Jaishankar, to Malé was a significant step towards reconciliation. High-level discussions focused on mutual priorities such as affordable housing, healthcare, and tourism, reflecting a shared commitment to navigate sensitive issues diplomatically.
President Muizzu’s state visit to India marked a watershed moment
in bilateral relations. Meetings with President Droupadi Murmu, Prime Minister Narendra Modi, and other senior officials centred on deepening cooperation across various sectors. The visit culminated in a landmark joint press conference at Hyderabad House in New Delhi, where both leaders unveiled the “Comprehensive Economic and Maritime Security Partnership.”
Prime Minister Modi announced substantial economic support, including a USD 400 million currency swap agreement and INR 30 billion in budgetary assistance. The State Bank of India’s rollover of USD 100 million worth of Maldivian Treasury Bills was a critical move to alleviate the Maldives’ foreign exchange challenges. Infrastructure development featured prominently, with the virtual inauguration of the redeveloped Hanimaadhoo International Airport and commitments to expedite the Greater Malé Connectivity Project and the new commercial port at Thilafushi.
Addressing the India-Maldives Business Forum in New Delhi, President Muizzu extended an invitation to Indian businesses to explore investment opportunities in the Maldives. He outlined an ambitious economic agenda focused on diversifying the Maldivian economy beyond tourism. Key initiatives include the launch of the Maldives International Financial Centre in early 2025 and the establishment of the Development Bank of Maldives, set to become operational in the coming months.
Digital connectivity was another focal point. The introduction of the RuPay card service in the Maldives and plans to link the Unified Payments Interface (UPI) between the two countries are poised to revolutionise financial transactions and enhance e-commerce opportunities. “I believe that private investments will continue to play a vital role in elevating our economies,” President Muizzu stated, emphasising the importance of private sector engagement in driving growth.
Given its strategic location in the Indian Ocean, the Maldives plays a crucial role in regional maritime security—a priority for both nations. The reaffirmation of defence ties includes training and capacity-building for the Maldives National Defence Force and the progression of the Ekta Harbour Project. India’s invitation for the Maldives to join the Colombo Security Conclave as a founding member further underscores the collaborative efforts to enhance security in the region.
The existential threat of climate change looms large for the Maldives, one of the world’s most vulnerable nations to rising sea
levels. Both countries have committed to promoting sustainable development, with India offering expertise in solar energy and energy efficiency. President Muizzu pledged to meet 33% of the Maldives’ energy requirements through renewable sources by 2028, highlighting the nation’s commitment to environmental sustainability.
For the Maldives, a small nation navigating the complexities of international relations, diplomacy must be both strategic and nuanced. The recent engagements with India reflect an understanding that while diversifying foreign partnerships is important, maintaining a close alliance with its immediate neighbour is paramount. This approach ensures that the Maldives can leverage opportunities for development while safeguarding its sovereignty.
The Maldives’ diplomacy is best served by a policy of pragmatic engagement—strengthening ties with traditional allies like India while fostering cooperative relationships with other global powers. This balanced approach allows the Maldives to benefit from India’s support in areas such as economic development, infrastructure, and regional security, without becoming overly dependent on any single nation.
As the Maldives and India approach the 60th anniversary of diplomatic relations in 2025, the foundations laid during President
Muizzu’s visit set the stage for a reinvigorated partnership. Mutual invitations for state visits and high-level dialogues signal a shared commitment to commemorating this milestone with tangible progress.
The “Comprehensive Economic and Maritime Security Partnership” is more than a bilateral agreement; it represents a vision for the future—one where both nations collaborate closely to address common challenges and pursue shared goals. As President Muizzu aptly noted at the India-Maldives Business Forum, “Let us work together towards a brighter future for all.”
The Maldives’ imperative to maintain a close relationship with India is anchored in historical ties, economic interdependence, and shared strategic interests. India’s role as a reliable partner in times of crisis and as a catalyst for development cannot be understated. For the Maldives, employing a diplomacy that balances national sovereignty with constructive engagement is essential.
By fostering strong ties with India, the Maldives can confidently navigate the evolving geopolitical landscape of the Indian Ocean region. This alliance not only enhances the nation’s security and economic prosperity but also contributes to regional stability. As the waves of change continue to shape global dynamics, the Maldives’ close relationship with India remains a steadfast anchor, guiding the nation towards a future of sustained growth and mutual respect.
FOREIGN POLICY
The Maldives has ascended nine ranks in the Henley Passport Index, securing the honour of possessing the most powerful passport in the region. This achievement marks the fourth consecutive year that the Maldives has held this prestigious position.
According to the Henley Passport Index, which reviews the visafree access of passports to different countries, the Maldives now holds the 52nd position globally, a significant improvement from its 61st position in 2023. This rise places the Maldives seven ranks higher than China, which is in the 59th position.
Currently, Maldivian passport holders enjoy visa-free entry into 94 countries, underscoring the strength and convenience of their travel document. The advantages of holding a strong passport are manifold, including greater freedom of movement, reduced travel costs, and increased opportunities for business and tourism.
In the South Asian region, India holds the second-highest rank on the global passport index, positioned at 82nd. Bhutan follows at 87th, with Sri Lanka close behind in the 93rd place. Bangladesh and Nepal are ranked 97th and 98th, respectively, while Pakistan is in the 100th position.
On the global scale, Singapore has surpassed Japan to claim the title of the most powerful passport, allowing entry into 195 countries without a visa. This reflects a broader trend of increasing travel freedom for certain countries, enhancing their citizens’ ability to explore, conduct business, and engage in international collaborations with ease.
The benefits of possessing a strong passport extend beyond mere convenience. For individuals, it means less bureaucratic hassle and lower expenses related to visa applications. For businesses, it translates into greater ease in international travel, facilitating smoother and more frequent business engagements and partnerships. Additionally, a powerful passport can enhance a country’s global image and foster stronger diplomatic relations.
The Maldives’ impressive climb in the Henley Passport Index is a testament to its ongoing efforts to strengthen international ties and improve travel freedom for its citizens. As the country continues to enhance its global standing, Maldivian passport holders can look forward to even greater travel opportunities and benefits in the future.
TECHNOLOGY & INNOVATION
The Maldives is set to enhance its digital payment landscape with the introduction of India’s Unified Payment Interface (UPI) payment service. A Memorandum of Understanding (MoU) formalising this development was signed on Friday night between the Ministry of Economic Development and NCPI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI). The signing ceremony was held at the Ministry of Foreign Affairs during the official visit of India’s External Affairs Minister, Dr. S. Jaishankar.
Dr. Jaishankar highlighted the transformative impact of the UPI system in India, noting that it has revolutionised digital transactions across the country. He pointed out that 40 percent of the world’s real-time payments now take place in India via the UPI system, illustrating the system’s efficiency and widespread adoption.
The Unified Payment Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). Launched in April 2016, UPI enables users to link multiple bank accounts to a single mobile application, allowing seamless money transfers and payments directly from their bank accounts. The system operates 24/7 and facilitates a wide range of transactions, including peer-to-peer transfers, bill payments, and online purchases.
One of the key features of UPI is its simplicity and ease of use. Users can make payments using just a mobile number or a virtual payment address (VPA), eliminating the need to enter extensive bank details. UPI is also highly secure, employing two-factor authentication and advanced encryption to protect users’ transactions.
The introduction of the UPI system in the Maldives is expected to bring several advantages, particularly in the tourism and economy sectors. For the Maldives, where tourism is the primary economic driver, UPI’s widespread use by Indian tourists could significantly enhance payment convenience. Indian visitors, who constitute a substantial portion of the Maldives’ tourist base, will be able to make payments effortlessly, boosting tourism-related revenues and improving the overall visitor experience.
Moreover, UPI’s integration could facilitate easier and more efficient crossborder transactions, supporting the Maldives’ financial inclusion goals. The system’s low transaction costs and instant payment capabilities can reduce the reliance on cash and traditional banking services, promoting a more digital and cashless economy.
However, the introduction of UPI in the Maldives also presents some challenges. One potential concern is the integration with existing local payment systems and ensuring interoperability across different platforms. Additionally, as UPI relies heavily on digital infrastructure, the Maldives must ensure robust cybersecurity measures are in place to protect against potential fraud and data breaches.
Another consideration is the need for widespread awareness and education about UPI among Maldivians to ensure smooth adoption. While UPI’s userfriendly interface is a strength, the success of its implementation will depend on how quickly and effectively the local population can adapt to the new system.
The signing of the MoU marks the first step towards introducing UPI in the Maldives, a move that is expected to benefit the country’s tourism and economy. With UPI’s proven track record in India, its introduction in the Maldives holds the promise of enhancing digital payments and supporting the country’s ongoing economic development. As the Maldives embraces this new technology, careful attention to integration, security, and public awareness will be crucial to ensuring its success.
The Maldives has experienced a notable shift in its trade balance during the first half of 2024, with exports declining significantly while imports continue to rise. This trend has raised concerns about the long-term sustainability of the country’s trade dynamics and its impact on the broader economy.
According to the Maldives Monetary Authority’s (MMA) Economic Update for July 2024, total exports in June 2024 decreased by 25% compared to the same period in 2023. This decline was largely driven by a drop in domestic exports, with lower earnings from frozen skipjack tuna and canned or pouched tuna exports being key contributors. Tuna, a staple of the Maldivian economy, has traditionally been one of the country’s most important export products, and the decline in these earnings reflects broader challenges facing the fisheries sector.
In contrast, re-exports, which include items such as jet fuel, saw an increase during the same period. However, this uptick in re-exports was not sufficient to offset the overall decline in total exports, leading to a negative impact on the country’s trade balance.
While exports have been falling, import expenditure has continued to rise, registering a 3% increase in June 2024 compared to June 2023. The increase in imports has been primarily driven by higher expenditure on food items, construction-related materials, and electrical and electronic machinery, equipment, and parts. These imports reflect ongoing development projects and the growing demand for goods to support the country’s infrastructure and economic expansion.
Overall, for the period from January to June 2024, total exports have declined by 9%, while total imports have increased by 6% compared to the corresponding period in 2023. This divergence between declining exports and rising imports has widened the trade deficit, posing challenges for the Maldivian economy.
The growing trade deficit is a cause for concern as it puts pressure on the country’s foreign exchange reserves and can affect the value of the Maldivian Rufiyaa. The Maldives’ dependence on imports, particularly for essential goods and development projects, makes it vulnerable to external economic shocks and fluctuations in global commodity prices.
Analysts suggest that addressing the trade imbalance will require a multifaceted approach. This includes enhancing the competitiveness of Maldivian exports, particularly in the fisheries sector, which has seen declining revenues. Additionally, diversifying the economy to reduce reliance on imports and promoting value-added industries could help mitigate the impact of the trade deficit.
The government’s role in facilitating trade agreements, improving infrastructure, and supporting local industries will be crucial in reversing the current trend. As the Maldives continues to develop its tourism and construction sectors, balancing these growth drivers with sustainable trade practices will be key to maintaining economic stability.
The Maldives’ trade balance in 2024 reflects a complex interplay of declining exports and rising imports. As the country navigates these economic challenges, strategic efforts to boost exports, manage imports, and safeguard foreign exchange reserves will be essential for ensuring long-term economic resilience.
The ambitious project to build the first water theme park and a sixstorey leisure hotel in Hulhumalé has faced numerous setbacks and legal challenges, resulting in its current state of suspension. Originally announced by the Housing Development Corporation (HDC) in 2017, the project was awarded to Waterfront Hotel and Leisure Company with an estimated investment of USD 25 million (approximately MVR 385.5 million).
The Hulhumalé water theme park was envisioned as a transformative addition to the city’s infrastructure, aligning with the President Yameen’s vision to develop Hulhumalé as a youthfriendly city and a centre for urban tourism. Planned attractions included various water slides for adults and children, kids’ pools, bumper boats, water houses, water rollers, water gyros, aqua loops, a fountain square, and a 50-room, six-storey hotel. The project was expected to not only provide recreational facilities but also stimulate economic activity and create job opportunities, making Hulhumalé a vibrant hub for residents and tourists alike.
Despite the promising start, the project encountered significant delays. Initially slated for completion by the end of 2018, substantial portions of the development remained unfinished even by 2020. HDC attributed the delays to various factors, including
Despite the promising start, the project encountered significant delays. Initially slated for completion by the end of 2018, substantial portions of the development remained unfinished even by 2020. HDC attributed the delays to various factors, including the COVID-19 pandemic, though the project had already fallen behind schedule before the pandemic began.
the COVID-19 pandemic, though the project had already fallen behind schedule before the pandemic began.
In August 2022, HDC terminated the agreement with Waterfront Hotel and Leisure Company due to inadequate progress and failure to continue work within the allotted time frame. The termination notice included a directive for the company to hand over the property within 30 days. In response, Waterfront Hotel and Leisure Company filed a civil suit seeking an interim order to delay compliance with HDC’s notice, arguing that the corporation’s actions could cause irreparable damage to the company. However, the Civil Court ruled against issuing a stay order, stating that the company had not demonstrated sufficient cause.
The project has also been under scrutiny by the Anti-Corruption Commission (ACC) due to alleged discrepancies in the awarding process and financial management. Concerns include the funds allocated for hotel construction exceeding permissible limits and issues regarding land rent decisions. These allegations have added another layer of complexity to the already troubled project.
Impact on the Community and Future Prospects
The completion of the Hulhumalé water theme park holds significant potential benefits for the local community and the broader Maldivian tourism industry. Once completed, the park could enhance recreational options for residents, attract tourists, and boost the local economy. However, the ongoing legal and logistical challenges pose significant obstacles that need to be addressed before these benefits can be realized.
The project’s initial vision aimed to create a youth-friendly environment and establish Hulhumalé as a centre for urban tourism. Despite the current stalled state, there remains hope that with the resolution of legal issues and renewed efforts, the water theme park and hotel could eventually come to fruition, fulfilling its promise of transforming Hulhumalé’s landscape and providing a vibrant recreational and economic hub.
The stark contrast between the project’s ambitious vision and its present state underscores the complexities and challenges of large-scale developments. As stakeholders await resolution, the completion of the water theme park continues to be a hopeful yet elusive goal for Hulhumalé.
SOCIETY & INVESTMENT
In their seminal report, “Rethinking Social Protection in South Asia: Toward Progressive Universalism,” the World Bank delves into the intricate dynamics of social protection across the region, offering a blueprint for a more inclusive and resilient future. This report is particularly relevant to the Maldives, grappling with significant social and economic disparities despite notable economic growth. The Maldives, renowned globally for its stunning beaches and luxurious resorts, harbours a complex reality beneath its idyllic surface. This article explores the multifaceted world of social protection in the Maldives, uncovering its successes, challenges, and the road ahead.
The Maldives has witnessed notable economic growth over the past two decades, propelling it into the ranks of middle-income countries. This growth, fueled by a booming tourism industry, has lifted many out of extreme poverty. However, this progress masks a dual reality: while Malé, the capital city, enjoys prosperity and development, the atolls remain ensnared in a cycle of poverty and vulnerability.
The disparity is stark. In 2019, approximately 93 percent of the poor resided in the atolls, with poverty rates averaging around 19.2 percent, compared to a mere 8.8 percent in Malé. South Huvadhu Atoll, one of the hardest-hit regions, reported a poverty rate of 24 percent. These figures underscore the pressing need for targeted social protection measures that address the unique challenges faced by the atoll communities.
The Maldives’ geographical vulnerability to climate change adds another layer of complexity. Rising sea levels, increased frequency of natural disasters, and the threat of coral reef degradation pose existential risks to the nation’s economy and its people. In 2019 alone, the Maldives faced significant economic losses due to extreme weather conditions linked to climate change. This
The nation must look beyond the horizon, envisioning a future where no one is left behind. The journey toward progressive universalism is not merely a policy choice; it is a moral imperative.
vulnerability necessitates a robust and adaptive social protection system capable of cushioning the impacts of such environmental shocks.
Social protection in the Maldives, though relatively strong, reveals notable gaps in coverage and effectiveness. The Maldives Retirement Pension Scheme (MRPS) and the Old Age Basic Pension (OABP) play crucial roles in providing income security to the elderly. However, social assistance programs need to expand their reach and adequacy to cater to the broader population, especially those in the atolls.
Social pensions constitute a significant portion of the Maldives’ social assistance expenditure. In fact, they account for 88.6 percent of the total social assistance spending. While this highlights a commendable focus on the elderly, it also indicates an imbalance in addressing the needs of other vulnerable groups, such as children and the working-age population.
The labour market in the Maldives presents a paradox. Despite economic growth, the quality and quantity of jobs remain inadequate. Between 2000 and 2020, the Maldives added only a fraction of the jobs needed to keep pace with the growing workingage population.
Women and youth face particular challenges in the labour market. Women are often relegated to unpaid labour or low-paying jobs, and youth unemployment rates are alarmingly high. The lack of opportunities for skill development and vocational training exacerbates these issues, trapping many in a cycle of poverty and vulnerability.
The concept of progressive universalism offers a promising pathway for the Maldives. This approach advocates for a social protection system that is both inclusive and fiscally sustainable, prioritizing the most vulnerable while progressively expanding coverage to all citizens. The Maldives’ journey toward progressive universalism must be anchored on four key pillars: promoting equity, building resilience, increasing opportunities, and strengthening social protection systems and financing.
Promoting Equity:
Equity must be at the heart of social protection reforms. This entails prioritizing support for the most vulnerable groups—women, children, and those in the atolls—ensuring they receive adequate assistance to break free from the shackles of poverty. Programs like conditional cash transfers and targeted subsidies can play a pivotal role in this regard.
Building Resilience:
Building resilience against shocks, both economic and environmental, is crucial. The social protection system must be robust and adaptive, capable of responding swiftly to disasters and economic downturns. Integrating climate resilience into social protection programs can help cushion the impacts of natural disasters, providing a safety net for affected communities.
Increasing Opportunities:
Creating quality jobs and improving access to education and vocational training are essential for enhancing economic mobility. Policies that promote job creation in high-productivity sectors and provide training opportunities for the youth and women can bridge the employment gap, fostering a more inclusive labor market.
Strengthening Systems and Financing:
A strong, efficient social protection system requires adequate financing and effective administration. Streamlining the coordination among various social protection programs and enhancing the capacity of administrative systems can ensure better delivery of services. Moreover, exploring innovative financing mechanisms, such as public-private partnerships, can bolster the financial sustainability of social protection initiatives.
The Maldives stands at a crossroads. The path toward progressive universalism is fraught with challenges, yet it holds the promise of a more equitable and resilient society. By embracing a holistic approach to social protection, the Maldives can safeguard its most vulnerable citizens, mitigate the impacts of climate change, and unlock the full potential of its young, dynamic population.
The nation must look beyond the horizon, envisioning a future where no one is left behind. The journey toward progressive universalism is not merely a policy choice; it is a moral imperative. It is a call to action to rethink, reform, and rebuild the social contract, ensuring a brighter, more inclusive future for all Maldivians.
President Dr Mohamed Muizzu has ratified the new Foreign Investment Bill, marking a significant step in modernising the legal framework for foreign investment in the Maldives. The newly ratified bill replaces the 45-year-old Foreign Investment Act, which had been in force since 1979, and aims to create a more favourable environment for attracting foreign capital, technology, knowledge, and skills to the country.
The updated legislation sets out clear guidelines for foreign investment, including the sectors in which foreign investors can operate, the conditions under which they may invest, and the procedures for obtaining the necessary permits. The law’s primary objectives are to increase foreign investment and ensure a balanced approach to opening up business opportunities, thereby enhancing economic growth and development in the Maldives.
One of the notable features of the new Act is the structured approach to identifying and assessing potential areas for foreign investment. The government is now tasked with identifying, studying, and preparing feasibility reports on business opportunities across various sectors. These reports are crucial in determining the sectors where foreign investment is encouraged, restricted, or subject to specific conditions. The Act mandates that the decision on these sectors be made in consultation with the Cabinet and published in the Government Gazette.
In addition to defining the areas open for investment, the law also specifies areas where foreign investment may pose risks. Key considerations include whether such investments could threaten national security, impact the competitiveness of local industries,
or interfere with the development of domestic businesses. The Minister responsible for implementing the Foreign Investment Policy is empowered to make these determinations, ensuring that the country’s economic interests are safeguarded.
Furthermore, the new law introduces stricter regulations for obtaining investment permits. Foreign investors are required to obtain a special license to operate in the Maldives, and the Ministry of Economic Development and Trade must decide on permit applications within 30 days, provided all regulatory requirements are met. This streamlined process is expected to enhance transparency and reduce bureaucratic delays, making it more attractive for foreign investors to enter the Maldivian market.
The Act also includes robust enforcement mechanisms to ensure compliance with the new regulations. Penalties for non-compliance are severe, including fines of up to 30 percent of the total business value for conducting business activities beyond what is permitted under the licence. Additionally, submitting incorrect information when applying for a foreign investment licence can result in fines ranging from MVR 100,000 to MVR 1 million.
Overall, the new Foreign Investment Bill represents a significant overhaul of the existing legal framework, bringing it up to date with contemporary standards and practices. By providing a clearer and more efficient pathway for foreign investment, the Maldives is poised to attract a more diverse range of investors, fostering economic growth and development while safeguarding the nation’s strategic interests.
The issue of permanent address and residency rights in the Maldives has long been a topic of contention, revealing underlying inequalities and economic challenges that contradict the nation’s constitutional principles. While the Constitution of the Maldives guarantees freedom of movement and residency rights for all citizens, the practical application of these rights often falls short, leading to significant disparities, particularly for those living outside the capital,
Article 41 of the Maldivian Constitution clearly states that every citizen has the freedom to enter, remain in, and leave the Maldives, as well as to travel within the country. It also ensures the right to move to and take up residence on any inhabited island and guarantees equal access to rights and benefits from any island where one has established residency. However, the implementation of policies surrounding permanent addresses seems to contradict these constitutional guarantees.
Malé, the densely populated capital, is undeniably the focal point of economic activity, government services, and educational opportunities. As a result, many Maldivians have spent their entire lives in the congested capital. Despite living, working, and contributing to Malé’s economy, residents remain registered in their birth islands for voting purposes, a practice that distorts political representation and perpetuates inequality.
The latest census data indicates that 46% of the Maldivian population are migrants living in islands where they were not registered at birth. This misalignment between residency and voter registration can lead to skewed political priorities and resource allocation, favouring areas with higher registered populations rather than where people actually reside and contribute economically.
The concept of a permanent address has become a political tool, often used to secure votes rather than reflect true residency. Those who have migrated to Malé for better opportunities are still required to transfer their registration to the capital to access housing under government projects. However, many retain their original registration to influence elections in their birth constituencies, despite having no vested interest there.
This practice has led to criticisms of the government’s preferential treatment of those with a Malé address, often allocating valuable land and housing to residents with a city address while neglecting long-term residents who contribute to the city’s economy. Such policies echo historical practices where islanders faced discrimination, such as the “Vaaru tax” and “Kuda Sitee” permits.
The economic centralisation in Malé has exacerbated disparities between the capital and the outer islands. Many islanders migrate to Malé seeking education, healthcare, and employment opportunities, leaving their birth islands economically stagnant. This migration trend undermines the potential for balanced regional development and reinforces the perception that islands outside Malé have no future.
The current system of permanent address registration stifles democratic representation and economic equity. Citizens who live and work in Malé but vote in their birth constituencies distort the true needs and priorities of both regions.
Reforming residency and electoral laws to reflect actual residency rather than permanent address is crucial for ensuring equitable representation and resource distribution. The current laws should be revised to allow citizens to vote in constituencies where they actually live and contribute economically. This change would ensure that elected officials truly represent the interests of their constituents and address the unique challenges of their regions.
Furthermore, abolishing the outdated concept of permanent address would align with the constitutional guarantee of freedom of movement and residency rights. It would also address the economic and social disparities that arise from the current system, promoting a more inclusive and equitable society.
Examining residency and voting rights in other countries can provide valuable insights for the Maldives. For instance, India’s Representation of the People Act ensures that citizens vote in the constituencies where they reside, reflecting their current place of residence and economic contributions. This practice helps ensure that political representation aligns with the actual population distribution and their needs.
In the United States, voting rights have evolved to address historical inequalities. Although the country faces challenges with felony disenfranchisement laws, significant progress has been made in restoring voting rights to previously disenfranchised citizens. This includes executive orders, new legislation, and constitutional amendments aimed at reintegrating individuals into the political process after they have served their sentences.
In Europe, many countries allow non-citizens who are long-term residents to vote in local elections. This approach recognizes the contributions of all residents to the community and ensures their voices are heard in local governance. Countries like Belgium, Denmark, and Finland have adopted such inclusive policies, enhancing democratic participation and social integration.
For the Maldives, addressing residency rights and revising electoral laws are essential steps toward fostering true democracy and economic fairness. Ensuring that all citizens, regardless of their place of birth, have equal access to housing, voting rights, and public services can help the nation move towards a more just and prosperous future. By learning from these global practices, the Maldives can create a more inclusive and representative political system that truly reflects the needs and contributions of its people.
The issue of permanent address and residency rights in the Maldives highlights significant inequalities and economic challenges that contradict constitutional guarantees. Reforming these practices is vital for ensuring equitable representation, balanced regional development, and adherence to the constitutional rights of all Maldivians. By addressing these issues, the Maldives can create a more inclusive and democratic society that benefits all its citizens, regardless of their registered permanent address.
Corporate Maldives is pleased to announce the CEO Summit, set to take place in May 2025. This landmark event will gather the most influential and transformative leaders in the Maldives who are advancing the nation’s economy through purpose-driven businesses.
The CEO Summit aims to provide a platform for these leaders to share innovative solutions to the country’s most pressing challenges. By bringing together visionaries from various sectors, the event seeks to foster collaboration and inspire strategies that contribute to sustainable economic growth.
The CEO Summit will replace the previously held Entrepreneurs Summit as a part of Bizweek. The Entrepreneurs Summit was a unique conference that brought together entrepreneurs from across the country to network and share knowledge in business, economics, and the importance of entrepreneurship. It aimed to catalyze innovation by sharing groundbreaking ideas and fostering collaborations to solve major challenges.
In addition to the Entrepreneurs Summit, Corporate Maldives has successfully organized events like the Maldives Marketeers Forum and the Maldives Women’s Summit. The Maldives Marketeers Forum convened well-known marketers to focus on the role of content creation in building successful businesses. The Maldives Women’s Summit brought together inspiring and innovative women to discuss challenges in reaching the top of organizations and balancing family life with work.
Further details about the CEO Summit will be announced soon. Corporate Maldives invites all interested parties to stay tuned for updates and looks forward to welcoming attendees to this significant gathering of minds.
Ace Aviation Services
Maldives Private Limited
+960 777 6886 roshan@aceaviation.mv
Avia Maldives Pvt Ltd
+960 778 6419 commercial@aviamaldives.com www.aviamaldives.com
Island Aviation
+960 333 5566 sales@iasl.aero www.maldivian.aero
Boat Manufacture & Marine Services Construction
Maldives Airports Company Ltd
+960 332 5511 info@macl.aero www.macl.aero
Trans Maldivian Airways
+960 763 7995 marketing@transmaldivian.com www.transmaldivian.com
Al Shaali Marine Maldives Pvt Ltd
+960 664 6066
D Blue Pvt Ltd
+960 777 5254 info@dblue.com.mv www.dblue.com.mv
Marine equipments
+960 333 8820 info@meq.mv www.meq.mv
+960 333 3773 corporate@fedo.mv www.fedo.mv Aviation
shareef@asmarinemaldives.com www.asmarinemaldives.com
ABC Construction Pvt Ltd
+960 300 3636 md@abcconstruction.com.mv www.abcconstruction.com.m
Batch Construcation Pvt Ltd
+960 334 5544 admin@batch.com.mv www.batch.com.mv
Bison Maldives Pvt Ltd
+960 331 5878
info@bison.com.mv www.bison.com.mv
Fedo Private Limited
Education
Rasheed Carpentry & Construction Pvt Ltd
+960 331 7878 inquiries@rcc.com.mv www.rcc.com.mv
Renaatus Maldives
+960 975-5777 sales.maldives@renaatus.com www.rpprenaatus.mv
Engineering
Ilaa Maldives Pvt Ltd
+960 335 5751 info@ilaamaldives.com www.ilaamaldives.com
Event Industry
Electronics
SJ Construction Pvt Ltd
+960 3300665 admin@sjconstruction.mv www.sjconstruction.mv
Islanders Education Pvt Ltd
+960 302 2000 info@islanderseducation.com www.islanderseducation.com
Reefside Company Pvt Ltd
+960 332 3545 reefside@reefsidemaldives.com www.reefside.mv REFCOOL
+960 330 9900 info@refcool.com.mv www.refcool.com.mv
Food & Beverages
Event Maldives Pvt Ltd
+960 778 1702 md@eventmaldives.com.mv www.eventmaldives.com.mv
City Investments Pvt Ltd
+960 334 2862 info@city.com.mv www.city.com.mv
Ensis Fisheries Pvt Ltd
+960 335 6677 info@ensisgroup.com www.ensisgroup.com
Symphony Maldives Pvt Ltd
+960 943 1561 info@symphonymaldives.com www.symphonymaldives.com
Finance & Insurance
Allied Insurance Company of the Maldives Pvt Ltd
+960 330 0033 info@allied.mv www.allied.mv
Amãna Takaful Maldives Public Limited Company
+960 331 5262 info@takaful.mv www.takaful.mv
Bank Of Maldives Plc
+960 333 0200 customerservice@bml.com.mv www.bankofmaldives.com.mv
Ceylinco Insurance Company Pvt Ltd
+960 969 3939 info@ceylincoinsurance.com.mv www.ceylinco-insurance.com
Commercial Bank Of Maldives
+960 333 2668 info@cbmmv.com www.cbmmv.com
Solarelle insurance
+960 330 0099 info@solarelleinsurance.com www.solarelleinsurance.com
Fuel Supplies Maldives Pvt Ltd
+960 333 6655 marketing@fuelmaldives.net www.fuelmaldives.com
The Hawks Pvt Ltd
+960 334 4949 info@thehawks.biz www.thehawks.biz
Eches Pvt Ltd
+960 779 0989 info@echesconsultancy.com www.echesconsultancy.com
Hospitality and Retail Systems
+960 784 6344 info@hrsinternational.com www.hrsinternational.com
Keiretsu Private Limited
+960 792 4636 info@keiretsu.mv www.keiretse.mv
Link Serve Pvt Ltd
+960 300 3000 sales@linkserve.com.mv www.linkserve.com.mv
Maxcom Technologies Pvt Ltd
+960 777 8220 sales@maxcom.com.mv www.maxcom.com.mv
Personal Computers
+960 300 3033
marketing@personalcomputers.mv www.personalcomputers.m
SHC Law & Tax
+960 333 3644 info@shclawyers.com www.shclawyers.com
Asia Forwarding Pvt Ltd
+960 334 3041 info@theasiaforwarding.com www.theasiaforwarding.com
Leo Trading Private Limited
+960 300 6638 leo@trading.mv www.leotrading.mv
Maldives State Shipping
+960 302 9200 info@stateshipping.mv www.stateshipping.mv
TTS Group Maldives Pvt Ltd
+960 301 1888 info@ttsgroup.com www.ttsgroupmaldives.com
Print, Publishing & Signage
Copier Plus (Pvt) Ltd
+960 777 2612 copeirplus@gmail.com www.copierplus.com.mv
Donad Investments Pvt Ltd
+960 333 6096 info@metalsigns.com.mv www.metalsigns.com.mv
M7 Print Pvt Ltd
+960 330 7787 print@m7maldives.com www.m7maldives.com
Novelty Printers And Publishers Pvt Ltd
+960 331 8844 sales.printers@novelty.com.mv www.novelty.com.mv
Printlab
+960 333 3022 info@Printlab.com.mv www.Printlab.com.mv
Red Creatic
+960 300 2003 creatic@red.mv www.red.mv
Safety & Security
GAGE PVT LTD
+960 330 4055 info@gage.com.mv www.gage.com.mv
Telecommunications
Dhivehi Raajjeyge Gulhun Public Limited Company
+960 332 2802 info@dhiraagu.com.mv www.dhiraagu.com.mv
Ooredoo Maldives
+929 or +960 961 3929 care@ooredoo.mv www.ooredoo.mv
Raajje Online
+960 301 4232 marketing@rol.mv www.rol.net.mv
Tourism & Hospitality
Ace Travels Maldives Private Limited
+960 777 6886 roshan@acetravels.mv
Angiri Resorts Management & Operations Pvt Ltd
+960 331 3523 info@angiri.com www.angiri.com
Capital Travel & Tours
+960 331 5089 support@capitaltravel.com www.capitaltravel.com
Crown & Champa Resorts
+960 664 0219 info@crownandchamparesorts.com www.crownandchamparesorts.com
Diethelm Travel The Maldives
+960 300 6913 coordinator@mv.diethelmtravel.com www.diethelmtravel.com/maldives
Intour Maldives Pvt Ltd
+960 333 9994 info@intourmaldives.com www.intourmaldives.com
Kaimoo Travels & Hotels Services Private Limited
+960 332 2212 kaimoo@dhivehi.net.mv www.kaimoo.com
Maldives Getaways
+960 796 6551 maldives@getaways.mv www.getaways.mv
Maldives Tourism Development Corporation Plc
+960 334 7766 info@mtdc.com.mv www.mtdc.com.mv
Silver Sands Pvt Ltd
+960 334 2737 info@silversands.com.mv www.silversandsdiving.com
Universal Enterprises
+960 332 3080 reservations@universalresorts.com www.universalresorts.com
Utilities
Fenaka Corporation Limited
+960 333 7555 info@fenaka.mv www.fenaka.mv
Universal Travel Services
+960 333 2354 ticketing@utsmaldives.com www.utsmaldives.com
Villa Travels
+960 333 0088 info@villatravels.com www.villatravels.com
Voyages Maldives Pvt Ltd
+960 332 2019 info@voyagesmaldives.com www.voyagesmaldives.com
Wholesale & Retail
Male’ Water And Sewerage Company Private Limited
+960 332 3209 mail@mwsc.com.mv www.mwsc.com.mv
State Electric Company Limited
+960 332 0982 admin@stelco.com.mv www.stelco.com.mv
Apollo Holdings Private Limited
+960 333 5569 info@apolloholdings.com.mv www.apolloholdings.com.mv
Co-Load (Maldives) Pvt Ltd
+960 332 0450 admin@coload.com.mv www.coload.com.mv
Cosmopolitan Champa Brothers Pvt Ltd
+960 789 1215 info@cosmopolitan.com.mv www.cosmopolitan.com.mv
Damas Company Pvt Ltd
+960 333 3000
info@damas.com.mv www.damas.com.mv
Hai Investment
+960 331 3917 info@haiinvestment.com www.haiinvestment.com
Happy Market Trading Company Pvt Ltd
+960 331 3523 info@happymarket.com.mv www.happymarket.com.mv
Maldives Gas Pvt Ltd
+960 333 5614 info@maldivesgas.com www.maldivesgas.com
Naid Trading
+960 331 7315 info@naidtrading.com www.naidtrading.com
Plaza Enterprises
+960 332 8675 admin@plaza.com.mv
Redwave Pvt Ltd
+960 919 4499 sales@redwave.mv www.redwave.mv
Seagull Group Pvt Ltd
+960 332 3617 info@seagullmaldives.com www.seagullmaldives.com
Senior International Pvt Ltd
+960 333 2002 info@serniormaldives.com
Sonee Hardware Pvt Ltd
+960 333 6699 info@sonee.com.mv www.sonee.com.mv
Sonee Sports Pvt Ltd
+960 333 5995 info@soneesports.com.mv www.soneesports.com
Souvenir Marine
+960 332 5893 ask@souveniremarine.com www.souvenirmarine.com
Urban Development
State Trading Organization Plc
1422 info@sto.mv www.sto.mv
Steel Hardware
+960 330 8513 sales@steelhardware.com.mv www.steelhardware.com
Sun Front Pvt Ltd
+960 331 3313 adminhr@sunfront.com.mv www.sunfront.com.mv
HDC
+960 335 3535 marketing@urbanco.mv www.urbanco.mv
Other
ADK Group Of Companies
+960 301 0086 nashid@adkenterprises.com www.adkhospital.mv
Antrac Holding Pvt Ltd
+960 331 0096 info@antracholding.com www.antracholding.com
Bayfancy Residence
+960 400 1188 sales@bayfancy.com www.bayfancy.com
Eyecare Pvt Ltd
+960 332 4300 info@eyecare.com.mv www.eyecare.mv
Handy Holdings Pvt Ltd
+960 331 0812 info@handyholdings.com www.handyholdings.com
Heat Health & Fitness
+960 332 2383 infoheatmv@gmail.com
Housing Development Finance Corporation Plc
+960 333 4666 info@hfdc.com.mv www.hdfc.com.mv
Litus Automobiles Private Limited
+960 744 4117 asif@litusgroup.mv www.litus.mv
Maldives Industrial Fisheries Company
+960 332 3932 info@mifco.mv www.mifco.mv
Maldives Ports Limited
+960 332 9339 info@port.mv www.port.mv
Maldives Transport And Contracting Company Plc
+960 332 6822 info@mtcc.com.mv www.mtcc.mv
Medianet Pvt Ltd
+960 332 0800 customerservice@medianet.com.mv www.medianet.mv
Mianz Pvt Ltd
+960 334 1545 info@micollege.edu.mv www.micollege.edu.mv
Muni Group Of Companies
+960 333 1512 info@muni.com.mv www.munihomecare.com
Salon Maldives
+960 331 4393 / +960 332 2772 marketing@nada.com.mv www.nadaclinic.mv www.nadasalon.mv
Silver Spoon
+960 777 3075 naeem@silverspoon.mv www.silverspoon.com
Villa Shipping And Trading Company Pvt Ltd
+960 333 3333 info@villa.com.mv www.villa.mv
Zetta Enterprises
+960 332 3617 info@seagullmaldives.com www.seagullmaldives.com
sales@allied.mv