President Dr. Mohamed Muizzu has decided to establish a company named Maldives Industrial Development Free Zone. This announcement came after deliberations on a proposal presented by the Ministry of Economic Development and Trade during a Cabinet meeting.
This Maldives Industrial Development Free Zone will engage in large-scale importation of goods from neighbouring countries and employ a re-export system to optimise profits. The company is a collaborative venture of five state-affiliated companies, namely the Maldives Airports Company Limited (MACL), Maldives Ports Limited (MPL), State Trading Organisation Public Limited (STO), Maldives Transport and Contracting Company (MTCC), and Housing Development Corporation (HDC). The Cabinet also decided that the company would approach the Board of Investment seeking permission to set up free trade zones.
Establishing free trade zones is a primary objective of the company's formation. The company will be responsible for enhancing trade activities and promoting economic diversification. This entails managing import, export, re-export, and processing activities, which are crucial for maintaining economic stability and security.
At a press conference, Principal Secretary to the President Abdulla Nazim Ibrahim said the company will import more goods than the Maldives needs and re-export them to neighboring countries. He also said the free trade zone will be designated in an area with an airport and port, adding that a suitable location with a 100-hectare area will be allocated for the company in Thilfushi or Giraavaru Falhu.
Additionally, Nazim said the company will allocate land from Uthuru Thilafalhu and seek investments to produce food items needed to ensure food security in the country. The company will be the major shareholder of these investments and will have the authority to facilitate other investments under a public-private partnership as strategic partners.