The Maldives have concluded a $8.8 billion agreement to build a blockchain first financial hub that is supposed to cover the entire country. The country aims to reposition its position as a global destination for digital assets.
According to the Financial Times, Dubai-based MBS Global Investments will fund the Maldives International Financial Center (MIFC) project.
The government signed the agreement on May 4th, positioning MIFC as a tax-free zone in the capital, Male. The site covers 830,000 square meters and is projected to generate up to 16,000 jobs by 2030. MBS Global said about $4 billion to $5 billion in funding has already been soft-committed from a large number of individual and family offices.
Maldives President Mohamed Muizu pointed out that the initiative will be framed as the basis for the country’s long-term economic strategy and serve as a “symbol of economic resilience.”
The economic state of the Maldives
The transaction arrives amid an increase in debt vulnerability. According to World Bank data, the Maldives’ public and publicly guaranteed debt reached 146% of GDP in 2020, with an external debt of $3.7 billion reported in 2023.
Through zero tax policies and a simplified regulatory structure, MIFC aims to attract exchanges, token issues and Web3 investment funds. The move will match the Maldives a wider trend among small states competing for crypto capital. The Digital Assets and Registration Exchange (DARE) Act 2024 of the UAE RAK Digital Assets OASIS and BAHAMAS shows that jurisdictions are increasingly building digital asset-friendly frameworks to capture this sector.
Nadeem Hussain, CEO of MBS Global, said, “Financial Centres will set new global benchmarks and will continue to innovate financially for at least 20 years. This is the next evolution of what is happening at other financial centers around the world.”
Still, questions remain about preparation for regulations. States must establish surveillance mechanisms to effectively pass the law and meet international money laundering standards. FATF compliance can become a focus as the project progresses.
The Maldives approach shows how a small, tourism-dependent economy facing external debt pressure is examining new sectors for diversification.
The size of the financial hub compared to the country’s GDP is a global outlier, making it a test case for economic transformation focused on crypto.
The transaction shows a sharp pivot in a country that seeks to compete in areas where regulatory clarity and tax benefits determine capital flows.
Whether this ambitious initiative will be successful or strain existing governance capabilities will unfold as the foundations of projects scheduled to be completed by 2030 begin.
