Recent progress in the Maldives’ economic development has followed the government’s decision under President Dr Mohamed Muizzu to amend the 2014 Special Economic Zone Act, a move intended to revitalise the nation’s strategy and attract foreign investment after years of stagnation.
The original legislation, though ambitious, faltered amid political opposition from the Maldivian Democratic Party that stalled major proposals. President Muizzu has now placed economic diversification at the centre of his administration’s agenda, advancing a framework designed to be more accessible to international investors and more resilient in the face of domestic challenges.
Under the revised law, developers may establish ‘sustainable townships’ if they commit a minimum investment of USD 500 million. These projects must integrate renewable energy, essential public services, and high-standard infrastructure, including international hospitals and hotels, ensuring that urban growth is comprehensive and sustainable.
The government issued its first permit under the new guidelines last Thursday to Crystals Holdings Pvt Ltd for a development in Noonu Atoll. Scheduled for completion by the end of 2028, the township will include a wellness and medical facility, an international education centre, and a dedicated agricultural island employing advanced farming technologies.
Minister of Economic Development and Trade Mohamed Saeed described the initiative as a landmark achievement, calling it a realisation of the administration’s vision for a resilient economy. He highlighted that the project reflects the success of targeted policy reforms and international outreach, and is expected to generate employment while expanding access to education and public services nationwide.