Situation Maldives: Closer to Peak

It has been eight weeks since Maldives declared State of Public Health Emergency. While the government has been taking several measures to strengthen the fight against COVID-19, the next couple of weeks will be crucial to the Maldives.

Considering the rate at which positive cases are increasing, it is assumed that the country will reach peak by the end of May 2020. The National Emergency Operations Center (NEOC) has warned that the situation could get worse within the next two weeks. Health professionals have made projections of the spread of the virus and has estimated that the Maldives may suffer over 77,000 cases of COVID-19 in total. Research Analyst Dr. Sheena Moosa formed these projections and presented during a press conference stressing on the need to revise the current testing capacity. According to her, authorities may be able to identify about 390 cases on the peak day while in reality, around 1500 cases may occur.

The first positive case in Male’ City on 15^th April 2020 led to the greater Male’ Area being under lockdown as an attempt to contain the spread. However, the virus has spread to some of the other residential islands. Although the islands are not under strict lockdown, the residents have been asked to maintain social distancing, avoid public gatherings and banned from inter-island travelling without approval.

Currently, Maldives has confirmed 790 cases of COVID-19 with majority of the infected individuals being foreigners. The country has witnessed 03 deceased due to the virus with two of them being Maldivians and one Bangladeshi. As of yet, the island nation has recorded 29 recoveries.

Frontline workers being at high-risk, 05 police officer as well as a number of MNDF officers are among the infected. In addition to those, some delivery personals as well as some WAMCO staff were also tested positive for COVID-19. While this has created panic among the people, majority of the public has been adhering to the advice of the authorities and relevant figures.

As the majority of the cases are Bangladeshi and Indian workers, the risk of more migrant workers being infected are high. Hence, the countries’ governments have been working towards repatriation. On 08^th May 2020, an Indian naval vessel departed from the Maldives with 698 Indian nationals who were left stranded in the country due to the pandemic. An additional group of Indians will be evacuated on 10^th April 2020.

A number of repatriation flights have also been conducted within the past few days to repatriate foreigners stuck in Maldives. This includes flights conducted by Srilankan Airlines, Turkish Airlines, and Skyup Airlines.

Strengthening Healthcare Systems

The government has also been establishing additional quarantine and isolation facilities due to the surge in numbers. This includes Gulhee Falhu quarantine facility with the capacity to accommodate 5000 individuals as well as Hulhumale’ quarantine center.

Furthermore, private hospital Tree Top Hospital has been offered to the government to entirely dedicate the facility for treating COVID-19 patients for three months. The hospital is well equipped with the capacity to treat up to 180 COVID-19 patients at any given time.

Economic Challenges and Recovery Plans

President Ibrahim Solih had set up a resilience and recovery task force to prepare for the reopening of Maldives’ economy post COVID-19. The National Task Force aims to formulate strategies in close coordination with relevant stakeholders in order to revive the country’s economy with combined efforts to boost the economic growth. While the task force will be overseen by the president, it includes working groups on finance, economic recovery and social sector.

Despite the nation’s economy smashed to the ground due to the pandemic, the government has been taking several measures to ease the struggles of the people.

With a number of individuals currently unemployed with no sources of income, the government had introduced stimulus grants to support those affected by the pandemic. On 07^th May 2020, the government announced the disbursement of MVR 70 million as relief loans. SMEs and Self-employed individuals facing cashflow constraints can avail these funds through SDFC. A grant scheme for artists and freelancers affected by the situation will also be introduced soon.

However, Maldives Association of Tourism Industry (MATI) has criticized the government for the lack of timely actions and job losses in the tourism industry. Revealing that the current relief packages were not formulated in consultation with them, MATI added that the challenges faced by the industry needs to be addressed urgently in order to recover from the impact of COVID-19.

Whilst the government of Maldives has emphasized on the reopening of borders in July. Being the backbone of the country’s economy, the recovery and resumption of the tourism industry is vital to rise from the economic fall.

Hopeful of combating the pandemic with stronger precautionary measures being implemented, Maldives looks forward to overcoming the pandemic and opening its shores again.

The Maldives, long known for its breathtaking resorts and vibrant tourism industry, is now setting its sights on a new frontier: becoming a global financial hub. The Maldives International Financial Centre (MIFC) is a monumental $8.8 billion joint venture between the Maldivian government and MBS Global Investments, a Dubai-based entity backed by Qatari royal interests. This project, scheduled for completion by 2030, promises to reshape the country’s economic landscape. It aims to diversify its dependence on tourism and establish the Maldives as a major player in global finance and innovation.

A Vision for Transformation

MIFC centers on a vision to transform the Maldives into a leading financial and technology hub in the Indian Ocean. The financial free zone, spanning 780,000 square meters in Hulhumalé, will attract fintech firms, international financial institutions, and digital entrepreneurs. Its business-friendly environment offers incentives such as zero corporate tax, tax-free inheritance, no residency requirements, and guaranteed foreign ownership, positioning MIFC as a unique proposition for global investors.

This digital-first financial ecosystem will host a range of services, including offshore private banking, green finance, digital assets, and multi-currency banking. The district will also feature world-class infrastructure: high-rise towers, branded residences, luxury hotels, retail space, and a state-of-the-art convention center that will host 35,000 visitors daily. This comprehensive vision will create 16,000 new jobs and position the Maldives as a competitive player in global markets by 2040.

A Strategic Investment for Growth

MIFC is not just about infrastructure; it aims to position the Maldives as an emerging leader in the world of finance. The government has outlined ambitious economic goals, including generating over $1 billion in annual revenue within the first five years of operation. This effort seeks to reduce the country’s economic vulnerability, which currently relies heavily on tourism while facing mounting external debt.

For the Maldives, this project goes beyond business; it represents a statement of intent to diversify its economy and reduce the risks associated with its single-industry focus. By tapping into global financial networks and attracting investors from around the world, MIFC can pave the way for sustainable economic growth and long-term prosperity.

Geopolitical and Economic Implications

MBS Global Investments, backed by Qatari royalty, lends the project significant geopolitical weight. Positioned strategically between two regional giants, India and China, the Maldives aims to capitalize on its political neutrality and become a financial bridge between East and West. The proximity to major shipping lanes and key economic corridors enhances the region’s strategic importance, making MIFC not only an economic endeavor but a geopolitical one as well.

By diversifying and strengthening its economy, the Maldives hopes to attract global capital that might otherwise flow to competing projects in the region. With its focus on sustainability and cutting-edge financial technologies, MIFC positions itself as a forward-looking alternative, appealing to investors seeking stability and long-term growth.

Criticism and Controversy

However, the project has faced criticism. Opposition voices have raised concerns about the transparency of the partnership with MBS Global Investments, particularly regarding the company’s lack of verifiable financial records and audit transparency. They have also questioned the credibility of its leadership and the potential risks associated with such a large-scale venture backed by a single foreign investor.

While these concerns are valid, the scale and ambition of the MIFC project remain undeniable. The Maldives government has committed to ensuring the project adheres to global standards of governance, and its focus remains on delivering a financial center that supports innovation and economic growth.

Looking Forward

MIFC represents an exciting leap into the future of finance and innovation for the Maldives. It is a bold attempt to build a resilient, diversified economy that can thrive long after the tourism boom. As the project progresses toward its 2030 completion, it will be interesting to see how it shapes the region’s financial landscape and whether it can overcome the challenges posed by its critics. For now, the Maldives is positioning itself as a key player in the rapidly evolving global financial scene, and MIFC could become the catalyst for a new era of growth and prosperity.

Situation Maldives: Closer to Peak

Latest

Maldives Sets Its Sights on Becoming a Global Financial Hub with $8.8 Billion MIFC Project

President Dr. Muizzu Meets Malaysian Business Leaders to Explore Investment Opportunities

China Halts Boeing Aircraft Purchases Amid Rising U.S. Tensions

Ong Beng Seng to Step Down as Managing Director of Hotel Properties Limited After 45 Years