In a move to stimulate economic growth and empower small and medium enterprises (SMEs), the government has announced plans to develop Addu City into the country’s premier information technology (IT) hub.
President Dr Mohamed Muizzu made the declaration during his Presidential Address at the opening of Parliament this year, outlining a comprehensive vision to designate key regions—including Addu City’s Hulhudhoo, and Meedhoo as SME-focused economic zones.
Starting 1 January 2027, Addu City will officially become a designated SME zone, benefitting from tax incentives, infrastructure development, and streamlined regulations aimed at fostering innovation and digital entrepreneurship.
President Muizzu emphasised that this initiative marks the beginning of 2026 as Maldives’ “Year of Productivity,” with special priority given to creating a sustainable, inclusive economy through SME empowerment.
To support this vision, the government has already disbursed USD 1 billion to settle debts owed to small businesses by state-owned enterprises. Additional reforms include extending airport cargo clearance to 124 hours, increasing port storage without demurrage fees to 10 days, and switching damage and freight charges to Maldivian Rufiyaa (MVR) for ease of transaction.
Business costs are also being reduced, with a 50 percent cut in café fees and a waiver on foreign employment quotas for companies with more than 20 foreign workers beginning March.
Digital financial integration is being accelerated through partnerships with global platforms like PayPal, Alibaba, and Swipe, while SME Digital is offering low-interest financing options. Complementing these efforts, the new Business and Commercial Center (BCC) building set for completion by November will serve as a central hub for enterprise development.