On May 4, the Maldives government announced that it had signed an agreement with the Dubai-based family office MBS Global Investments to develop a $9 billion blockchain and digital assets hub in the capital of the South Pacific island nation, Malé. The agreement aims to reduce the Maldives' dependence on tourism and fishing, and to promote the development of blockchain and Web3 technologies by attracting foreign direct investment (FDI).
Maldives International Financial Center
According to a report from the Financial Times, the project plans to establish the 'Maldives International Financial Center,' covering a total area of 250,000 ping, and is expected to create up to 16,000 job opportunities. The project is anticipated to take five years to complete, with the required capital far exceeding the Maldives' current annual GDP of approximately $7 billion, highlighting its ambitious goals.
MBS CEO Nadeem Hussain stated that the project can be financed through equity and debt, and has already secured funding commitments of '4 to 5 billion dollars.' The overall plan claims that the Maldives will become a 'financial free zone for global blockchain and digital assets,' aiming to double the Maldives' GDP within four years and generate 'over 1 billion dollars in revenue' in the fifth year.
Intense international competition
The Maldives' actions reflect the growing global focus on the cryptocurrency industry. However, the country's ambition to become a global fintech center will inevitably face competition from well-funded, well-regulated mature markets like Dubai, Singapore, and Hong Kong.
In recent years, Dubai has rapidly risen as a global Web3 and cryptocurrency hub due to its proactive regulatory environment and the government's openness to blockchain. On April 6, the Dubai Land Department (DLD) signed an agreement with the Virtual Assets Regulatory Authority (VARA) to link the land registration system to the blockchain, promoting real estate tokenization.
Meanwhile, Hong Kong is attracting hundreds of Web3 and fintech companies through proactive regulatory policies. According to Ivan Ivanov, CEO of the WOW Summit, Hong Kong is leveraging its position as a bridge between Western economies and China to attract investment and serve as a regulatory sandbox.
Singapore is already regarded as one of the main international cryptocurrency industry centers, with dozens of digital asset exchanges and hundreds of Web3 companies. Singapore attracts global investors with its regulatory approach that encourages technological innovation while avoiding harsh regulations that hinder it.
Source