Investment in Maldives Financial Hub
A family office based in Dubai has unveiled plans to invest $8.8 billion in the Maldives, aiming to create a financial hub focused on “blockchain and digital assets.”
This ambitious investment from MBS Global Investments over the next five years surpasses the Maldives’ annual GDP, which is approximately $7 billion. However, Finance Minister Moosa Zameer emphasized the country’s necessity to diversify away from reliance on tourism and fishing.
Zameer pointed out that the looming debt over the next two years presents “the biggest challenge we have.” In a video interview with the Financial Times, he remarked that this deal could potentially help address the specific difficulties the country faces.
MBS, managing around $14 billion in assets, is associated with the wealthy Qatari Sheikknife Vinh Aid Alti. The family office plans to finance its Maldives investment by collaborating with other family offices and affluent individuals to form a consortium.
Nadeem Hussain, the CEO of MBS, indicated that the projects would likely be funded via equities and debt, with a firm commitment of about $4 billion to $5 billion already earmarked for this initiative.
“From the very beginning, we were prepared for the fundraising involved and secured the necessary alliances and partners,” said Hussain. “That’s a considerable amount of money.”
A joint venture agreement for the project was signed between MBS and the Maldives government on Sunday.
The proposed Maldives International Financial Center, according to the Project MasterPlan, will cover 830,000 square meters, expecting to accommodate 6,500 individuals and create 16,000 jobs in the capital, Male.
The initiative branded “Finance Freesone” aims to triple the Maldives’ GDP within four years, potentially generating revenue exceeding $1 billion by the fifth year.
This announcement follows closely on the heels of India’s $760 million bailout, which was aimed at preventing a sovereign default.
In December, Moody’s cited the Maldives’ increasing “external liquidity pressures,” given significant external debt obligations, including $500 million in debt with a form of Islamic restriction on interest, as well as debts between $600 million to $700 million due this year and about $1 billion in 2026.
Zameer acknowledged India’s and China’s contributions as “development partners,” but mentioned that financial center transactions represent a new approach. “MBS is initiating a business model that differs entirely from our traditional borrowing methods,” he stated.
While the political stability, connectivity, and proximity to major markets like India and the Gulf countries are seen as advantages, a senior Indian businessman noted that it may be “not easy” for Male to establish itself as a regional financial center given the competition from established hubs like Dubai and Mauritius.
