The launch of the Addu Regional Free Zone marks a new attempt to expand commercial activity outside the capital, with the government opening applications for businesses seeking to operate within the designated zone.
The free zone was officially inaugurated at a ceremony held at Addu High School by Minister of Economic Development, Transport and Trade Mohamed Saeed and Minister of Homeland Security, Labour and Technology Ali Ihusaan. Applications are now open for businesses interested in carrying out activities within the zone.
The project has been developed through collaboration between Maldives Ports Limited, the Economic Ministry, Maldives Customs Service and other government agencies. Around 1.7 hectares of land has been allocated from the Hithadhoo Port area, while 20,000 square feet has been prepared for free zone-related activities. A duty-free cargo and storage zone has also been designated at Hithadhoo Regional Port.
MPL Deputy Managing Director Mohamed Lam’aan said at the ceremony that the project is aligned with President Dr Mohamed Muizzu’s economic vision and is intended to support both the southern economy and the wider national economy. He also noted that participation from the business community would be important in determining the success of the zone.
Minister Saeed said Addu’s development would be shaped around the needs and views of local businesspeople. He said the government plans to introduce special concessions and incentives from 2027 to 2029 to attract investment into the zone, while work is already underway to develop Addu City’s business sector.
Minister Saeed said free zones remain a relatively new concept in the Maldives, although they are widely used in industrialised and neighbouring countries to support economic activity. He said the Addu Regional Free Zone is expected to generate significant benefits for the city.
The government is also seeking to create a more investment-friendly legal framework to attract both local and foreign investors. Minister Saeed said cooperation between the state, businesses and other stakeholders would be necessary for the project to achieve its intended goals.
The initiative was first announced by President Muizzu during the opening of Parliament this year, as part of a broader policy to establish investment zones for small and medium-sized enterprises across the country. The administration has said the long-term aim is to help position Addu as a major business and IT hub in the Maldives.
Activities supported within the free zone will include duty-free storage, vehicle refurbishment, manufacturing, bonded warehousing and re-export services. Land allocation rates for businesses operating in the zone have already been set.
Businesses have been invited to submit proposals from 13 May to 11 June for activities linked to the Addu Regional Free Zone, including cargo storage. Proposals must include details such as land requirements, planned activities and lease requirements.
