The government has begun a strategic expansion of the Hithadhoo Commercial Port in Addu City, advancing President Dr Mohamed Muizzu’s pledge to establish the region as a southern economic hub.
“A primary indicator of a nation’s economic strength is its ability to maintain price stability for the essential commodities required for daily life,” President Muizzu said in his Presidential Address at the inaugural session of Parliament for 2026 on 5 February. “With this objective in mind, we undertook significant initiatives over the past year.”
He continued: “Accordingly, we established a designated duty-free zone at the Kulhudhuffushi Port on 26 August [2025]. Building on that progress, we intend to establish a similar duty-free zone at the Addu [Hithadhoo Commercial] Port and commence services within this month, God willing.”
Soon after the president’s remarks, officials formalised the upgrade through an agreement signed by Minister of Economic Development and Trade Mohamed Saeed and the leadership of Maldives Ports Limited (MPL). The expansion will add three key capabilities: a duty-free zone for food and essential goods, bonded warehouse services, and a bulk cargo facility. Together, these measures are intended to modernise the nation’s trade infrastructure and stabilise commodity prices.
Local merchants stand to gain greater financial flexibility under the new arrangements. Bonded warehousing reduces cash flow pressures by allowing businesses to store imported inventory without the immediate obligation of paying duties. This reform is designed to remove longstanding financial bottlenecks, enabling traders to manage capital more efficiently while maintaining adequate stock levels for the region.
The introduction of bulk cargo facilities addresses urgent needs within the construction sector. By enabling the mass importation and storage of materials such as aggregate and sand, the government aims to lower logistical costs, reduce market prices, and accelerate infrastructure and housing projects across Addu and the southern atolls. Officials project that this shift will expedite long-delayed developments and improve housing accessibility for residents.
The port’s upgrade is also expected to strengthen the tourism industry. With 85 facilities operating across the four southern atolls, direct supply chains to resorts will reduce reliance on shipments from the capital, Malé, cutting transportation costs and improving delivery times. Officials describe the initiative not merely as a service enhancement but as a foundational step to cement Addu City as the country’s second economic pillar.