Managing Director of State Trading Organisation (STO) and Maldives Industrial Development Freezone Company (MIDFZ), Shimad Ibrahim, has announced that practical works on the Agricultural Economic Zone will commence in early 2026.
The project follows an agreement signed in March 2024 between MIDFZ and China Harbor Engineering Company Limited, aimed at ensuring food security in the Maldives by establishing an agricultural economic zone. The initiative includes reclaiming 100 hectares of land to create the necessary space for the project.
Shimad explained that land reclamation was chosen due to the need for a large, continuous area to maximise the project's efficiency and profitability. He stated while smaller islands are available, consolidating the project in one large location was deemed more effective. In addition to agricultural activities, the zone will feature a training centre and accommodation blocks.
The Agricultural Economic Zone will cultivate various vegetables and fruits, while also producing poultry and chicken eggs. Shimad highlighted that the project is expected to have a significant impact on the Maldives’ food imports, reducing dependence on foreign markets. He expressed optimism that the zone would address a large portion of the country's food needs and help lower consumer prices.
As part of the agreement, the project will include land reclamation in Uthuru Thilafalhu (UTF), the development of primary infrastructure, an agricultural industrial park, passenger and freight terminals, and other necessary facilities. MIDFZ stated that this initiative aims to revitalise the Maldivian agricultural sector by attracting investors, boosting domestic production, and diversifying the range of locally available food products. The project is also expected to reduce reliance on imports and minimise the outflow of foreign currency.
Minister of Economic Development and Trade Mohamed Saeed described the initiative as a pivotal step towards cultivating 80% of approximately 15 varieties of vegetables and fruits commonly consumed in the Maldives. Meanwhile, Minister of Agriculture and Animal Welfare Dr. Aishath Rameela announced that the government has identified the specific crops to be grown and outlined the extent to which imports could be reduced following the project's implementation.