Qatari royal backs Maldives $9bn financial freezone

MBS Global Investments and the Maldives government will jointly develop a $8.8 billion Maldives International Financial Centre (MIFC) in the Maldivian capital city of Malé.

The freezone will have no corporate tax and tax-free inheritance in a bid to attract digital nomads, entrepreneurs and high net worth individuals.

Based in Dubai, MBS Global is the investment arm of the private office of Qatar’s Sheikh Nayef Bin Eid Al Thani.

MIFC will be completed by 2030 and is forecast to add additional revenue of more than $1 billion to the Maldives economy by the fifth year, according to a joint statement.

The centrepiece of the freezone will be a 3,500-seat conference centre, with three residential and office towers designed for global headquarters and regional offices.

MIFC will have a climate-resilient infrastructure, with public spaces powered by renewable energy. The upper level of the mega development will be car free and all transport and logistics infrastructure will be located underground.

Covering 780,000 sq m, MIFC will be able to accommodate more than 6,500 residents and expects a daily footfall of 35,000.

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Dubai-based master planner architect Gianni Ranaulo has designed the mixed-use development.

In September 2024, Moody’s expects Maldives’ foreign exchange reserves to remain at very low levels and authorities will be tested on their ability to obtain external financing.

The rating agency downgraded the country’s long-term local and foreign currency issuer ratings to Caa2 from Caa1 and placed the rating under review for downgrade.

The decision was due to default risks rising materially, as foreign exchange reserves – even inclusive of assets held in the Sovereign Development Fund – remained low with prospects for a sharp recovery relatively dim.