State-Owned Enterprises (SOEs) in the Maldives have significantly increased their dividend contributions to the state, with figures for 2025 so far indicating more than a threefold rise compared to the same period last year. As of 10 April 2025, SOEs paid MVR 223.7 million in dividends, an increase of 272% from the MVR 60 million recorded by this point in 2024.
This sharp uptick in payouts comes at a time when the government is grappling with tight capital expenditure and rising debt repayments, making SOE contributions increasingly vital to budgetary breathing room. In fact, SOE dividends accounted for 9% of all non-tax revenues in the first quarter of 2025, compared to just 3.2% in 2024.
Non-tax revenue overall rose from MVR 1.89 billion in 2024 to MVR 2.48 billion in 2025, driven by higher fees and charges, stronger tourism-linked revenues, and the rise in SOE payouts. Yet while these numbers appear to paint a picture of improved SOE performance, they raise deeper questions.
Without a breakdown of which SOEs contributed these dividends or the basis for the increased remittances, it’s unclear whether the higher payouts reflect genuine operational profits or extraordinary measures—such as forced remittances, asset sales, or the reallocation of internal reserves. This concern is particularly relevant given that many Maldivian SOEs operate in sectors with limited competition and are often supported through state guarantees, subsidies, or direct budget allocations.
For instance, while SOEs returned MVR 223.7 million to the treasury, the government simultaneously disbursed large sums to fund services typically managed or supported by these enterprises. Aasandha alone received MVR 665.9 million in subsidies as of April 2025, and grants and contributions totalled MVR 2.62 billion across various agencies. This raises the risk that the state is effectively cycling money from one pocket to another.
Furthermore, despite the increased dividend contribution, the government’s capital spending remains constrained. Only MVR 736.8 million of the approved MVR 12.4 billion Public Sector Investment Programme (PSIP) had been utilised by 10 April 2025, suggesting implementation bottlenecks, cash flow issues, or institutional inefficiencies—many of which are linked to SOEs responsible for executing development projects.
The current dividend surge must therefore be seen not just as a fiscal success, but also as a signal. It highlights the urgency for enhanced governance, transparency, and performance tracking within SOEs. The state cannot afford to rely on opaque financial engineering or one-off windfalls. Instead, what is needed is a clearer picture of return on investment, public service delivery outcomes, and how much value these enterprises truly generate for the Maldivian economy.
