The Maldives have signed a joint venture with MBS Global Investments, based in Dubai, to develop a large -scale blockchain and a digital active center.
This decision comes in the context of the efforts of the island nation to find other sources of income due to increasing concerns concerning its external obligations.
The project, entitled The Maldives International Financial Center, is expected to be built in the capital Male over a period of five years. According to the project master plan, the center will cover 830,000 square meters and will accommodate up to 6,500 residents while employing around 16,000 people. It is designed to function as a free financial area focused on blockchain technologies and digital assets, government projections suggest that the initiative could triple the country’s GDP in the four years and generate more than 1 billion USD per year by the fifth year.
The investment exceeds the GDP of the Maldives
MBS Global Investments, a private family office would have managed $ 14 billion in assets, is committed to leaving funding. It should be noted that the investment of 8.8 billion USD exceeds the current annual GDP of the Maldives of around 7 billion USD. A representative of MBS said that more than $ 4 to $ 5 billion in funding had already been obtained thanks to a mixture of equity and debt, from a network of rich individuals and family offices. The official recognized the magnitude of the commitment, but said that partnerships and financial agreements were in place to continue the plan.
Government officials of the Maldives consider the initiative as a strategic pivot away from dependence on tourism and peaches. An official of the Ministry of Finance described the country’s current financial pressure as its “greatest challenge”, highlighting significant reimbursements due in the next two years. According to the Financial Times, the debt obligations include between 600 and 700 million USD in 2025 and an additional $ 1 billion in 2026, including 500 million USD Sukuk.
The government recently accepted a support of USD 760 million from India to avoid failures, and international rating agencies continue to highlight the country’s vulnerability to external liquidity shocks. Maldivian officials noted that if traditional partners such as India and China remain important for infrastructure and aid, the financial center represents a change to a more trade -oriented development model.
