The agreement signed between MBS Global Investments and the Maldivian government aims to diversify the country's economy from tourism and fishing to blockchain and digital asset technologies.
The Maldives is making a significant move into the cryptocurrency industry to diversify its economy and attract foreign investment. Under the agreement signed with Dubai-based family office MBS Global Investments, a $8.8 billion blockchain and digital asset finance center is planned to be established in the capital, Male. This agreement, signed on May 4, aims to reduce the country's dependence on its tourism and fishing sectors.
The project is expected to take about five years to complete, and the required capital exceeds the Maldives' annual GDP of $7 billion. However, the project already has over $4 billion in pre-financing commitments.
A major economic transformation
The planned Maldives International Finance Center will cover an area of 830,000 square meters and provide employment for approximately 16,000 people. Finance Minister Moosa Zameer described this initiative as a step towards economic diversification in an interview with the Financial Times. Zameer stated that the Maldives is facing "the biggest challenge" in repaying external debts maturing in the next two years, and that the project could "help alleviate some of the financial pressures we are facing."
The Maldives' plan to become a crypto hub reflects the growing importance of the global crypto industry. However, the Maldives' goal to become a global fintech center will have to compete with well-funded, established regions like Dubai, Singapore, and Hong Kong.
Will it be able to compete?
Many established crypto and fintech centers are already present in the global market. Dubai has quickly become a growing crypto and Web3 hub thanks to its favorable regulatory environment. Hong Kong has also succeeded in attracting hundreds of Web3 and fintech companies with proactive regulations. Singapore continues to draw global investments with its regulatory approach that encourages technological expertise.
MBS Global Investments, managing $14 billion in assets, serves as the family office of Sheikh Nayef bin Eid Al Thani, a member of the Qatari royal family. This center stands out as one of the first major initiatives in the island nation's crypto and blockchain ecosystem.
