The Maldivian government has announced a joint venture worth $8.8 billion with the Dubai company MBS Global Investments. The partnership aims to create the Maldives International Financial Centre (MIFC), a financial hub focused on blockchain and digital assets, in the capital Male by 2030.
This initiative marks a strategic turn for the debt-laden island nation, aimed at diversifying its tourism-dependent economy and reducing reliance on traditional loans.
The Maldives is preparing to become a global center for blockchain finance.
The joint venture agreement and accompanying Memorandum of Understanding (MOU) were formalized on May 4 under the oversight of President Mohamed Muizzu.
According to the Financial Times, the MIFC initiative will be implemented over five years. It will be funded through equity and debt. Additionally, MBS has already secured $4-5 billion in commitments.
The financial center will set a new global standard, advancing financial innovations at least two decades ahead. This is the next evolution of what is happening in other financial centers around the world,” said MBS Global Investments CEO Nadeem Hussain in an official press release.
The press release states that the MIFC will offer significant tax incentives. These include the absence of corporate tax and residency requirements, tax-free inheritance, and constitutional property rights.
The center will also support multi-currency and offshore private banking along with frameworks for digital assets and green finance, creating a financial ecosystem ready for the future.
“With the MIFC, we are shaping the Maldives of tomorrow, a beacon of innovation and national pride that will thrive in harmony with nature. The financial center will be a symbol of economic resilience and set a new global standard that will benefit the people of the Maldives for generations to come,” said President Muizzu.
It is worth noting that the Maldives faces significant financial challenges. The country has debt obligations of $600-700 million due in 2025 and about $1 billion in 2026. Furthermore, the country’s economy, which largely relies on tourism, struggles to generate sufficient revenue to service its debt.
Thus, the MIFC represents a transformative strategy. It aims to attract foreign investments, create high-paying jobs, and establish a new source of revenue through financial services. Furthermore, the project aims to enhance the national GDP over four years.
It is expected to generate over $1 billion in revenue by the fifth year. This will be a significant step in diversifying the Maldives' economy and achieving long-term financial sustainability.
“This is a grand project. It offers a fantastic opportunity to diversify our economy beyond tourism in line with our ambitions and will attract the best companies and visionary entrepreneurs from around the world,” said the Maldives' Minister of Finance.
The center will encompass 780,000 square meters. It will accommodate over 6,500 residents and attract 35,000 visitors daily. The development will create 16,000 jobs in Male, significantly boosting local employment.
Key features include three landmark towers for residential and office spaces, globally recognized hotel brands, a retail district, an international school, an Oceanographic Museum, a mosque, and a modern conference center.
Meanwhile, the project aligns with the growing global interest in blockchain and digital assets. Earlier, BeInCrypto reported that the Abu Dhabi-based sovereign wealth fund MGX invested $2 billion in the cryptocurrency exchange Binance. This indicates a rising institutional interest in this sector.