Minister of Finance Ibrahim Ameer has revealed that the economy of the Maldives will increase to USD15 billion after the completion of the ongoing developmental projects. He made the statement at a panel discussion with the Minister of External Affairs of India Dr. Subrahmanyam Jaishankar at the Inaugural Session of the Asia Economic Dialogue 2023.
Speaking at the session, Minister Ameer said there is a fundamental difference between the developmental projects that are carried out with Indian assistance, which is that they are mainly geared towards future growth. He noted that the Greater Male’ Connectivity Project (GMCP) and the relocation of the Male’ Commercial Harbour will transform the Maldivian economy and drive economic growth for years to come.
Additionally, Minister Ameer mentioned the development of the Hanimaadhoo International Airport, which will have a capacity of around 1.8 to 2.1 million tourists per year. He said that the development of the airport will increase the number of investors in the northern region. He added that the Gan International Airport is also being developed with the assistance of a line of credit facility from the EXIM Bank of India. He detailed that the airport will have a capacity of around 1.8 million passengers and that the USD6 billion economy of the Maldives will transform into a USD15-20 billion economy within five to ten years after the development of the airports in the north and south.
Furthermore, Minister Ameer said India has provided its assistance in the efforts to establish essential services in the Maldives such as clean water supply and sewerage systems across the country. He highlighted that only 30% of the country had proper water and sanitation systems when the administration took office but that it will be able to increase that number to 70% with the assistance of the EXIM Bank of India. He noted that economic activity will increase in the islands with the establishment of essential services.
Minister Ameer also shed light on how the COVID-19 pandemic had impacted the Maldives, which is reliant on tourism. He highlighted that the economy declined by 33% after the borders were closed down for three months, making the Maldives one of the worst-hit countries during the pandemic. He, however, said that the country’s resilience was shown when it rebounded strongly in 2021 and 2022, adding that the tourism sector has surpassed the numbers it had reached in 2019.