The Maldivian authorities signed an agreement with Dubai-based MBS Global Investments to create a digital finance center aimed at diversifying the economy and overcoming debt obligations.
The government of the Republic of Maldives announced plans to build a crypto and blockchain hub worth $8.8 billion. According to the Financial Times, the project will be implemented in partnership with Dubai investment firm MBS Global Investments, which will fund the project through a network of family offices and private investors.
The project to establish the Maldives International Financial Center includes building a large-scale cryptocurrency and blockchain hub in Malé, the country’s capital. The total development area will cover around 830,000 square meters, making it one of the largest infrastructure projects in the archipelago’s history. The implementation is planned over five years, with around 16,000 jobs expected to be created.
The initiative aims to stimulate the Maldives’ economic growth, particularly by tripling the country’s GDP over the next four years. According to investor estimates, by its fifth year of operation, the financial center will generate over $1 billion annually, providing a significant contribution to the national budget.
Maldivian Finance Minister Moosa Zameer stated that the country needs solutions to diversify its economy and address current financial challenges, with rising debt obligations posing the main threat. The project is expected to reduce the country’s dependence on tourism and fishing and help the Maldives tackle its growing external debt.
The Maldives recently experienced a financial crisis. The risk of default was avoided only through a $760 million financial aid package provided by India.
The Maldivian authorities are confident the project will be able to compete with existing financial centers such as Dubai, Singapore, and Hong Kong, thanks to the country’s strategic location. The government also views the project as an opportunity to shift from traditional borrowing models to partnership-based business initiatives capable of ensuring sustainable economic growth and financial independence.
The president of the Central African Republic previously attempted to use the construction of a crypto hub to transform that country’s economy.
