Economic diversification has been a central topic for successive Maldivian governments. The need to reduce reliance on the tourism-driven economy became particularly evident during the COVID-19 pandemic when the nation's primary industry was forced to shut down, leaving no other sectors to cushion the impact. Despite this clear warning, meaningful action to diversify the economy has been lacking—until now.
This administration is demonstrating a concrete commitment to economic diversification. Early in its term, efforts began to establish an international financial industry in the Maldives.
International Bunkering: The First Step Toward Economic Diversification
Among the government's key initiatives is the introduction of international bunkering services, a vital step in diversifying the economy. The first of these services was inaugurated in the northern region of the Maldives, specifically in Hoarafushi, Haa Alifu Atoll. The inauguration ceremony was attended by Minister of Economic Development Mohamed Saeed and the service was inaugurated by five Members of Parliament representing the atoll.
The State Trading Organisation (STO) has taken the lead in providing these international bunkering services. According to STO, the service is already attracting bookings. To facilitate this, the company has introduced two vessels to the Maldives, each with a capacity of approximately 4,000 tonnes.
A symbolic water salute was given to the first ships servicing the bunkering operation. The initial fuel supply was provided to the MSS ship, the YC Barrier, by the Marine Bella—one of the vessels brought in for this purpose.
Leveraging the Maldives’ Strategic Location
The Maldives is positioned along one of the busiest maritime routes globally, with hundreds of ships carrying billions of dollars’ worth of cargo passing daily. Up until now, these vessels have relied on neighboring countries like Sri Lanka, India, and Singapore for bunkering services, due to the lack of “low sulfur fuel” availability in the Maldives.
With the introduction of bunkering services in the Maldives, the country is poised to become a key destination for ships in need of refueling. The necessary low sulfur fuel and diesel will now be readily available within the country.
A New Industry with Major Economic Potential
Currently, the Maldives' GDP stands at approximately USD 6.5 billion. However, the government estimates that the new bunkering industry could generate an additional USD 400 million annually.
Maldives Ports Limited (MPL) has established Northern Maritime Services to provide various other maritime services related to bunkering. These services include pilotage, docking, crew changes, and vessel maintenance, all of which will attract foreign currency into the economy.
The launch of bunkering and related maritime services marks the birth of a significant new industry in the Maldives. This initiative is expected to become one of the largest contributors to the country’s economy in the years to come, providing a sustainable source of income beyond tourism.