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.

Parliament has approved an amendment to the Special Economic Zone (SEZ) Act, raising the minimum investment requirement for projects to USD 500 million and introducing new tax concessions aimed at attracting large-scale foreign investment.

The amendment, proposed by Baarah MP and People’s National Congress (PNC) Parliamentary Group Deputy Leader Ibrahim Shujau on behalf of the government, was passed with 46 votes in favour and 10 against during Wednesday’s sitting.

The revision marks one of the most significant changes to the SEZ framework since the law was first introduced, establishing stricter investment criteria and outlining the conditions under which new “sustainable townships” can be developed.

According to the new law, a sustainable township is defined as a large-scale real estate or integrated tourism development managed within a designated zone, incorporating residential, commercial, and public service facilities. The projects must prioritise long-term environmental sustainability by sourcing at least 60 percent of their operational energy from renewable sources and ensuring self-sufficient waste management systems.

Developers will also be required to include international-standard facilities such as hospitality training centres or healthcare institutions, alongside provisions for on-site housing, schools, and recreational amenities. The projects are expected to include agricultural or co-agricultural initiatives to reduce import dependency and strengthen local food production.

To attract investors, the amendment introduces several fiscal incentives. These include a reduced income tax rate of five percent for the first ten years, increasing to ten percent for the next decade, after which the standard rate under the Income Tax Act will apply. Developers will also be exempt from import duties on capital goods used in the construction and development of SEZ projects.

Additionally, a new property transfer tax will apply to villa and room transactions within SEZ tourist and integrated resorts, structured on a tiered basis: one percent on the first transaction, two percent on the second, and four percent on subsequent sales.

The government has stated that these measures aim to attract major foreign investment while ensuring that SEZ projects contribute to long-term economic growth and environmental sustainability.

The Tourism Ministry and Maldives Airports Company Limited (MACL) have signed an agreement for the company to develop a city hotel and an eco-tourism project in Fuvahmulah. 

The agreement was signed during President Dr Mohamed Muizzu’s visit to the island at Fuvahmulah School. MACL’s Managing Director Ibrahim Shareef Mohamed signed on behalf of the company, while State Minister Nashath Rasheed signed for the ministry.

Several other development agreements for Fuvahmulah were also signed, including the establishment of 16 classrooms and a laboratory at Fuvahmulah School, awarded to MTCC. A third space for youth development will be constructed by Center Land Pvt. Ltd., while MACL has been tasked with building a sports complex. 

Practical work also began on the construction of 400 housing units in Fuvahmulah, with several projects and services inaugurated during the President’s visit.

During the visit, President Muizzu met with members of the Fuvahmulah City Council and the Women’s Development Committee. The President is scheduled to visit Addu today, concluding his two-day visit to the two cities. His itinerary in Addu includes stops at Hulhudhoo and Meedhoo, as well as visits to other connected islands.

Chief Financial Officer of the Maldives Pension Administration Office (MPAO), Hawwa Fajuwa, has resigned from her post amid public scrutiny over a government bond transaction between the Pension Office and the Maldives Monetary Authority (MMA).

Fajuwa announced her resignation in a LinkedIn post on Tuesday, saying the decision came after careful consideration. She did not provide a reason for her departure.

Her resignation follows the board’s approval of a government bond transaction estimated at around MVR 2.4 billion. The arrangement involves selling existing government bonds held by the Pension Office to the MMA and reinvesting the proceeds in new Treasury bonds.

While the Finance Ministry has described the move as a planned investment in safe government instruments, critics argue it resembles money printing, which could increase liquidity in circulation and risk inflationary pressure. The MMA has since proposed converting the bonds into five-year long-term instruments in the secondary market.

The issue has prompted broader concern over the handling of pension funds. Pension Office Board Member Ahmed Saruvash Adam resigned last month, citing legal and economic concerns regarding the transaction. Opposition leaders, including Maldivian Democratic Party (MDP) Chairman Fayyaz Ismail, have also criticised the deal and called for the resignation of the heads of both the MMA and the Pension Office.

Fajuwa was appointed as CFO in October 2023, during the final months of the previous administration. Before joining MPAO, she served as Chief Public Accountant at the Ministry of Finance and has over a decade of experience as a Chartered Accountant and Licensed Auditor.

The Finance Ministry has maintained that the bond transaction aligns with fiscal policy and does not contradict President Dr Mohamed Muizzu’s commitment not to print money.

Parliament’s committee of the whole has passed a major amendment to the Special Economic Zone (SEZ) Act, paving the way for the creation of “sustainable townships” that combine real estate, tourism, and public services under a single integrated framework.

The amendment, introduced by People’s National Congress (PNC) MP Ibrahim Shujau on behalf of the government, marks the first change to the SEZ Act since it was enacted in 2014. It aims to attract large-scale investments by offering tax incentives and concessions to developers who commit to building self-sufficient, environmentally conscious townships.

Under the new provisions, sustainable townships are defined as centrally managed large-scale developments that include residential, tourism, and public facilities while maintaining a focus on sustainability. These zones must feature on-site housing, healthcare, education, and recreation facilities, with at least 60 percent of their operational energy sourced from renewables. Developers are also required to establish sustainable food production systems to reduce import dependency.

To qualify for such projects, investors must pledge a minimum investment of USD 500 million. Each township must incorporate an international-standard hospitality training centre or hospital, in addition to luxury tourism facilities and modern amenities.

The bill includes notable tax incentives for investors. Developers will enjoy a reduced income tax rate of five percent for the first 10 years, rising to 10 percent for the following decade, before reverting to the standard rate under the Income Tax Act. Capital goods imported for township development will be exempt from import duties.

Hoarafushi MP Ali Moosa successfully introduced an amendment to impose a four percent property transfer tax on villas or rooms sold on a strata basis within tourism and integrated resort zones. The amendment passed with 55 votes in favour and five abstentions.

Despite strong opposition from Maldivian Democratic Party (MDP) MPs, who called for more consultation with stakeholders such as the Maldives Association of Tourism Industry (MATI) and relevant ministries, the government-aligned majority pushed the bill through committee.

Galolhu South MP Meekail Ahmed Naseem had sought to delay the review until February 2026, citing the need for broader consultation and warning against rushed legislation. However, his proposals were voted down by 53 members.

The bill, which passed the committee stage with 55 votes in favour and nine against, mandates that regulations for implementation be published in the Government Gazette within six months of enactment. Once ratified, the amendment will come into immediate effect, signalling the government’s intention to fast-track the establishment of sustainable township zones as part of its broader development agenda.

A new bioplastic bag manufacturing centre has been inaugurated in Hanimaadhoo, Haa Dhaalu Atoll, marking a step forward in efforts to improve environmental sustainability and food security in the Maldives.

The facility, established by the Small Island Geographic Society (SIGS), was officially opened on Sunday by the Minister of Agriculture and Animal Welfare, Dr Mariyam Mariya. Speaking at the ceremony, the Minister announced that the government will soon introduce a national packaging system designed to meet international food safety standards.

Dr Mariya noted the growing environmental challenges facing the country, including rising levels of plastic pollution. Citing findings from a SIGS study, she said households in a city such as Hulhumale’ use more than three million plastic bags every year, each taking up to two decades to fully decompose.

She also drew attention to recent scientific evidence showing the presence of microplastic particles in human organs and bloodstreams, entering through food, water, and air.

The Minister described the new centre as an example of innovation, noting that the bioplastic bags produced there are biodegradable and provide a sustainable alternative to conventional plastic. She commended SIGS for its ongoing research and promotion of sustainable practices for managing agricultural and household waste, describing these efforts as important in reducing food wastage and lowering dependency on imports.

Dr Mariya said the upcoming packaging system for Maldivian products, particularly food items, is being developed to align with international standards and forms part of a wider government strategy for sustainable development.

The project was developed through collaboration between SIGS and several partners, including the World Bank’s PLEASE initiative, the Sustainable Energy and Climate Action Plan (SECAP), and the United Nations Office for Project Services (UNOPS).

According to the Minister, the government remains committed to supporting local production and improving packaging quality to enhance the marketability of Maldivian goods.