President Dr Mohamed Muizzu has ratified the First Amendment to the Special Economic Zone (SEZ) Act (Act No. 24/2014), introducing new provisions to support the development of sustainable townships within designated SEZs.

The amendment bill was passed by the 20th People’s Majlis during its 16th sitting of the third session of 2025, held on 5 November.

The revised Act outlines the framework for designating SEZs as sustainable townships, setting out the principles and conditions required for their establishment. According to the amendment, a sustainable township must involve a minimum investment of USD 500 million and include either an integrated tourism development or a large-scale real estate development. Integrated tourism projects are required to feature a range of luxury tourism services, while large-scale real estate developments must additionally include luxury residential facilities.

The amendment also introduces new sustainability standards for infrastructure within such zones. It mandates that energy production and waste management systems must be self-sufficient, with at least 60 per cent of the zone’s operational energy needs generated from renewable sources.

In addition, the amendment specifies a range of special concessions and incentives for developers and investors involved in sustainable township projects, aimed at promoting large-scale, environmentally responsible investment in the Maldives.

Following ratification, the First Amendment to the Special Economic Zone Act has been published in the Government Gazette and is now in effect.

Maldives Immigration has officially launched its digital services under the ‘Maldives 2.0’ project, marking a significant step towards a fully digital public service framework and ending the need for in-person visits for passport and visa services.

The inauguration ceremony took place at Barceló Nasandhura Malé and was officiated by President Dr Mohamed Muizzu, who was welcomed by Minister of Homeland Security and Technology, Ali Ihusaan.

During the event, President Muizzu launched the new Maldives Immigration website, mobile application, and facial recognition system, officially introducing the e-Visa service to the public.

‘Maldives 2.0’, launched as a presidential initiative, seeks to transform the nation’s administrative and public service systems through digital innovation. The programme aims to establish faster, more secure, and transparent service delivery across all State institutions within the next three years.

With this milestone, Maldives Immigration becomes the first Government agency to achieve full digitalisation of its services. The shift is expected to streamline operations, improve efficiency, and provide citizens and foreign nationals with easier access to essential documentation.

At the ceremony, Minister Ihusaan and the Controller General of Immigration, Commissioner of Police (Retired) Ahmed Faseeh, presented a commemorative plaque to President Muizzu in recognition of his efforts to advance the ‘Maldives 2.0’ vision and promote digital transformation nationwide.

Auditor General Hussain Niyazi has raised concerns over the government’s record MVR 64.2 billion budget for 2026, warning that the lack of cost-cutting measures could deepen the Maldives’ fiscal challenges and further expand national debt.

Addressing the State Budget Review Committee, Niyazi said the proposed budget contains no concrete strategies to reduce spending, unlike previous years when at least some austerity measures were outlined. He described the government’s approach to expenditure reduction as one that has been continually delayed, arguing that the absence of such measures is unsustainable.

Niyazi cautioned that without decisive action to manage public spending, the Maldives risks losing control over its debt trajectory. He urged lawmakers to request detailed fiscal guidelines and expenditure control measures from the Ministry of Finance before approving the budget.

Director General Mohamed Shan of the Auditor General’s Office noted that while the projected revenue target of MVR 40 billion appeared reasonable, the absence of spending cuts and consolidation plans remained a key concern. He highlighted that austerity policies proposed in previous budgets had not been implemented and that the government’s current spending trend showed no signs of restraint.

The government had earlier considered pension and subsidy reforms to curb expenditure but later reversed these plans. Instead, President Dr Mohamed Muizzu opted to allocate a number of projects to state-owned enterprises, presenting the decision as a cost-saving measure. The move has drawn criticism from private contractors, who argue that they are being excluded from opportunities.

At the same time, the government has awarded more than 200 projects to private companies without competitive bidding, prompting the opposition Maldivian Democratic Party (MDP) to consider legal action.

Transparency issues have also been raised regarding fiscal reporting. The Ministry of Finance has not published weekly expenditure and revenue updates for several months, citing unresolved transactions from the previous administration. Finance Minister Moosa Zameer has since acknowledged that approximately MVR 2 billion in spending remains unaccounted for.

In its advisory to the government, the Auditor General’s Office stated that the deteriorating fiscal situation has made it increasingly difficult to secure external financing, leading to greater reliance on domestic borrowing. The office advised the government to adhere to its medium-term debt strategy to stabilise the fiscal position and ensure sustainability.

While the Ministry of Finance has plans for debt repayment, the Auditor General’s Office warned that the steps outlined could still increase the overall debt burden if not supported by meaningful reductions in expenditure.

Hanimaadhoo International Airport (HIA) was officially inaugurated on Sunday evening, marking an important step in improving infrastructure and air connectivity in the northern Maldives.

The redeveloped airport, located in Haa Dhaalu Atoll, now features a 2,465-metre runway capable of accommodating narrow-body international aircraft, a new passenger terminal spanning over 10,000 square metres, and upgraded facilities to support both passenger and cargo operations.

The inauguration ceremony was attended by President Dr Mohamed Muizzu and First Lady Sajidha Mohamed, who arrived aboard a Maldivian Airbus A320, the largest aircraft to have landed at Hanimaadhoo. Indian Minister of Civil Aviation Ram Mohan Naidu also attended the event as the Special Envoy of Prime Minister Narendra Modi, representing the Government of India.

The airport redevelopment project was financed through a USD 136.6 million line of credit from India’s EXIM Bank, part of a broader USD 800 million agreement signed in 2019. It was contracted to India’s JMC Projects Ltd, with construction beginning in early 2023.

Originally opened nearly four decades ago, Hanimaadhoo Airport previously handled only small domestic aircraft. With the latest expansion, it is now equipped with a modern terminal designed to handle up to 1.3 million passengers annually, a fuel farm, a cargo terminal, and an aerobridge, the first of its kind at any airport outside the capital region. The facility also includes an art gallery showcasing Maldivian artists and new ATM and dollar counter services operated by Bank of Maldives.

Speaking at the ceremony, President Muizzu said the airport would help address connectivity challenges faced by the northern atolls. He noted that improved access would encourage investment and tourism in the region, which has long faced higher travel costs and limited transport links compared to the central Maldives.

He also called on both local and foreign investors to explore opportunities in the north, highlighting the potential for economic growth around Hanimaadhoo and neighbouring islands such as Kulhudhuffushi and Ihavandhoo.

The government expects the upgraded airport to support regional commerce by reducing import costs and facilitating direct international access for tourists. President Muizzu added that the project demonstrated the administration’s commitment to completing delayed infrastructure works, noting that much of the construction was accelerated within the past year.

The ceremony included a fireworks display and a tour of the new terminal, operated by Maldives Airports Company Limited (MACL). Senior government officials, foreign dignitaries, and community representatives were also in attendance.

Hanimaadhoo International Airport now stands as one of the Maldives’ largest regional airports and a central component of the government’s decentralisation agenda. By expanding direct air connectivity to the north, the project is expected to play a key role in supporting tourism, trade, and employment across the region.

Procurement-related complaints were the most frequently reported cases to the Anti-Corruption Commission (ACC) during the first half of 2025, according to new data released by the commission.

Figures show that 43 procurement-related cases were submitted in the first quarter, followed by 30 in the second quarter, bringing the total to 73 for the first six months of the year.

Complaints concerning the misuse of state funds and resources ranked second, with 16 cases in the first quarter and 14 in the second, totalling 30 cases. Employment-related cases were reported nine times in the first quarter and eight times in the second. Reports involving land and rented resources increased from nine in the first quarter to 13 in the second, reaching 22 overall.

Most complaints originated from the atolls, accounting for 53.8 percent of cases in the first quarter and 63.1 percent in the second. In comparison, reports from Malé made up 46.2 percent in the first quarter and 36.9 percent in the second.

During the same period, the ACC conducted several awareness and prevention initiatives, including corruption prevention programmes for government offices and staff of state-owned enterprises. Two such programmes were held in the first quarter, training 141 participants, followed by one session for 68 participants in the second quarter.

The commission also held six awareness programmes for 125 staff of state-owned companies in the first quarter, and four sessions involving 93 participants in the second. Additionally, one awareness programme on state procurement was held, attended by 61 participants.

The Anti-Corruption Commission has recently faced public criticism over perceived inaction and inefficiency, with growing scrutiny regarding its handling of corruption complaints and delays in concluding investigations.

The Maldivian Democratic Party (MDP) has decided to pursue legal action against the government’s decision to award 206 development projects worth MVR 2.7 billion, citing violations of the Public Finance Act. The decision was finalised during the party’s National Council meeting held last night, where members reached a consensus to take the issue to court.

The projects, valued at a total of MVR 2.7 billion, were awarded to 53 local contractors during a ceremony at Barceló Nasandhura in Malé. Implemented under the Public Sector Investment Programme (PSIP) on a contractor-finance basis, the projects span housing, education, health, environment, sports, religious affairs, fisheries, homeland security, and youth empowerment.

According to the Ministry of Finance, the initiative is aimed at accelerating infrastructure development and increasing private sector involvement in national projects. However, opposition figures and financial experts have questioned the transparency and legality of the procurement process.

The MDP contends that the government’s use of the Single Source procurement mechanism, which allows for direct project awards without open bidding, breaches the Public Finance Act. The party’s resolution argued that this approach lacks fairness and transparency, further claiming that companies without government affiliations were excluded from participation. The Council’s decision also included a call for all project agreements to be voided and for independent institutions to investigate the matter.

The issue stems from amendments introduced earlier this year to Section 10.22 of the Public Finance Rules, which permit the cabinet to allocate projects directly under Single Source procurement. Critics, including former Tender Board Chairperson Ismail Zariyand and former Finance Minister Ibrahim Ameer, have voiced concern that such amendments weaken fiscal accountability and create opportunities for misuse of public resources.

Zariyand has also raised doubts about the capacity of some selected companies, noting that several lack registration or operational history as contractors. He further suggested that, although the projects are described as contractor-financed, financing has been facilitated through the Bank of Maldives at a nine percent interest rate, leaving the state responsible in case of default.

Ameer, who chairs the MDP’s Economic Committee, has said the process undermines established fiscal safeguards and could expose both the government and BML to unnecessary financial risk. He noted that the feasibility of completing the projects within the next two years remains uncertain, given the country’s fiscal constraints.

President Dr Mohamed Muizzu has defended the decision, stating that all contracts were awarded in compliance with the Public Finance Act and that companies met eligibility criteria, including audited financial statements and bank clearance. The Ministry of Finance maintains that the framework is intended to accelerate island development and attract greater private investment in infrastructure.

Despite these assurances, growing scrutiny over procurement procedures and fiscal transparency has intensified political debate. With the MDP preparing to take the issue to court, the government’s largest project allocation to date now faces legal and public accountability challenges.

Former President Mohamed Nasheed has proposed selling shares of Velana International Airport (VIA) as an alternative to issuing high-interest bonds, suggesting that proceeds from such a sale could be used to reduce the Maldives’ external debt.

In a post on X, Nasheed wrote: “Rather than pursuing a bond sale to Cargill Financial Services Inc. at a high interest rate, it would be more prudent to consider divesting a portion of Velana Airport shares. The generated revenue could be allocated towards settling the Sukuk Bond, thereby reducing the country’s debt obligations.”

The proposal comes as the government faces the upcoming maturity of a USD 500 million sukuk in April 2026. According to the proposed 2026 State Budget, this repayment represents the largest single debt obligation next year. The government plans to refinance or defer around USD 450 million of the amount and cover the remaining USD 150 million through the Sovereign Development Fund (SDF).

President Dr Mohamed Muizzu previously stated on 13 October that there were no concerns about meeting the repayment deadline, noting that his administration is taking steps to strengthen the economy and intends to honour the sukuk in full.

Nasheed’s comments follow ongoing concerns from credit rating agencies such as Fitch and Moody’s, which have maintained low ratings for the Maldives due to high debt levels and limited fiscal reforms.

The former president also referred to the 2010 airport concession agreement under which his administration leased VIA operations to India’s GMR for 25 years. The deal was later terminated by President Dr Mohamed Waheed Hassan Manik’s government in 2012, a move that Nasheed and former Finance Minister Ibrahim Ameer have described as economically damaging.

The idea of selling shares in VIA has drawn mixed reactions, with some critics warning against privatising a strategic national asset. However, Nasheed argues that the measure could provide immediate relief from growing debt pressures while avoiding the burden of high-interest borrowing.

The Ministry of Finance has announced the signing of 206 development projects valued at MVR 2.7 billion, awarded to 53 local private contractors. The agreements, signed at a ceremony held at Barceló Nasandhura in Malé, fall under the government’s Public Sector Investment Programme (PSIP) and are structured on a contractor-finance basis.

According to the Ministry, the projects aim to strengthen essential services and infrastructure across multiple islands while encouraging greater private sector participation in national development. The projects span a range of sectors, including housing, education, health, environment, sports, religious affairs, fisheries, homeland security, and youth empowerment.

Housing and urban development projects account for the largest share, valued at MVR 997 million, followed by education projects worth MVR 511 million and health-related initiatives valued at MVR 312 million. Other allocations include MVR 204 million for environmental projects, MVR 197 million for sports, MVR 196 million for religious affairs, MVR 132 million for fisheries, MVR 115 million for homeland security, and MVR 40 million for youth empowerment.

The Finance Ministry stated that all projects would be implemented under approved PSIP contracts, with payments to be made based on verified progress.

However, the decision to award the projects without a public bidding process has drawn criticism from former government officials and opposition figures, raising concerns over transparency and potential fiscal risks.

Former Tender Board Chairperson Ismail Zariyand alleged that the government’s move violated fiscal regulations and allowed projects to be distributed without competitive bidding. He argued that amendments made to Section 10.22 of the Public Finance Rules since President Mohamed Muizzu took office had enabled the cabinet to directly allocate projects, bypassing standard procurement procedures.

Under the revised framework, companies are not required to provide a project guarantee, while those awarded contracts reportedly receive an advance payment of 15 percent of the total project value. Although the government has described the projects as contractor-financed, critics claim that financing has been arranged through the Bank of Maldives (BML) at a nine percent interest rate, with the state ultimately liable if companies default.

Zariyand also raised concerns about the financial and operational capacity of some of the companies selected, noting that a few were inactive or not registered as contractors under the Ministry of Housing.

Former Finance Minister Ibrahim Ameer also voiced concern, describing the process as contrary to established fiscal rules. Speaking in his capacity as chair of the Maldivian Democratic Party’s Economic Committee, Ameer said the amendment allowing projects to be awarded without open bidding facilitated the misuse of public resources.

He argued that the practice exposed BML to unnecessary financial risk and questioned the feasibility of completing many of the projects within the next two years due to limited funding. Ameer said the opposition would review the legality and implementation of all projects awarded under the new system if it returns to government.

The Finance Ministry has maintained that the new framework encourages private investment and accelerates development across the islands. However, ongoing scrutiny over procurement procedures and fiscal transparency has placed the government’s latest round of project awards under significant public and political attention.

The Government of Maldives has introduced a series of reforms to foreign investment regulations, with a particular focus on the real estate sector, in an effort to curb capital flight and strengthen the position of domestic businesses in the national economy, Minister of Finance and Planning Moosa Zameer announced.

Speaking at a ceremony held on Thursday to formalise over 200 development contracts with private Maldivian firms, Minister Zameer noted that a significant portion of real estate companies operating in the Maldives are foreign-owned. These firms, he explained, often manage major developments without generating proportionate benefits for the local economy.

“These companies sell real estate assets to Maldivians using financing from the Maldivian banking system, convert the proceeds from MVR to USD, and increasingly remit the funds abroad through local intermediaries,” said the minister.

The new measures, led by the Ministry of Finance, mark a strategic policy shift towards economic self-reliance and sustainable local enterprise. Minister Zameer said the government is committed to reducing the outflow of capital from the country and ensuring that local financial systems better serve national interests.

Minister Zameer said these policy adjustments are designed to ensure that more revenue circulates within the domestic economy while enhancing the long-term growth of local, tax-paying enterprises. He added that the reforms reflect the government’s commitment to fostering the development of Maldivian businesses and reinforcing their contribution to national progress.

Additionally, the Finance Ministry has directed state-owned enterprises to prioritise local contractors, suppliers, and real estate-linked businesses in their procurement processes. The National Tender Board and other relevant authorities have already awarded hundreds of contracts to Maldivian private companies in line with this directive.

Recently, the ministry revised the  Foreign Investment Requirements, which now state that real estate projects valued below USD 100 million are now reserved exclusively for local entities. This is the first time such a threshold has been introduced, aiming to protect sectors with strong domestic potential while promoting foreign participation in areas requiring external expertise or capital.