The Maldives Industrial Development Free Zone PLC (MIDFZ) has signed a significant framework agreement with Capital Asia Investments (CAI) to advance the Maldives Economic Gateway (MEG) Project. This strategic partnership aligns with President Dr Mohamed Muizzu’s vision of diversifying the Maldivian economy and strengthening economic security.
The agreement, formalised by Mr Shimad Ibrahim, Managing Director of MIDFZ, and Mr Tan Kun Chiao George, Chief Commercial Officer of CAI, seeks to transform the Ihavandhippolhu region into a major logistics and commercial hub. This initiative falls under the broader Special Economic Zones framework, aimed at fostering sustainable economic growth and enhancing resilience in the Maldives.
MIDFZ, a consortium of five state-owned entities, was established in January 2024 to lead strategic initiatives, including projects aimed at ensuring food security and setting up essential storage facilities across the nation. The MEG Project is a key element of these initiatives, aimed at driving economic transformation and securing vital supply chains.
Under the new agreement, MIDFZ and CAI will collaborate on defining the project’s scope, assessing financial feasibility, and establishing crucial terms for execution. The partnership focuses on a phased development approach, with both parties committed to assessing costs and developing long-term strategies for sustainable economic growth.
CAI, a Singapore-based fund management company, brings extensive experience in infrastructure, fintech, IT, renewable energy, and hospitality. With a diverse portfolio managing assets worth USD 1.3 billion, CAI’s involvement in the MEG Project is expected to contribute significantly to the project’s success. The company’s expertise in private placements, equity transactions, and strategic investments positions it as a valuable partner for transformative projects in the Maldives.
This framework agreement marks a step forward in the Maldivian government’s plans to diversify its economy and reduce dependency on traditional sectors. The development of the MEG Project is expected to turn the Ihavandhippolhu region into a hub for trade and logistics, attracting foreign investment and generating new economic opportunities.
The government, in partnership with CAI, aims to drive sustainable, socially responsible economic development. The MEG Project is designed not only to enhance economic growth but also to support the Maldives’ long-term vision of economic stability and resilience.
The agreement was officially signed on 9th November 2024, with both parties expressing optimism about the project’s potential to transform the Maldivian economic landscape.
