The Maldivian cabinet is set to deliberate on a proposal to introduce an investor residency program during a meeting on Sunday.

These programs, widely adopted by various countries, aim to attract significant foreign investments by offering expedited residency rights to individuals who make substantial financial contributions.

The Maldives hopes to leverage this program to stimulate economic growth and diversify its economy.

In a video message ahead of the meeting, President Dr. Mohamed Muizzu confirmed that the cabinet would explore the introduction of an investor residency initiative, mirroring successful models implemented in developed nations.

He emphasized that the program is part of the government's broader strategy to fast-track economic diversification.

  However, he refrained from providing specific details on how the program would be structured in the Maldives.

Investor residency programs can bring substantial benefits to the Maldives by attracting high-net-worth individuals who are willing to invest in key sectors such as tourism, real estate, and infrastructure.

This influx of capital could create job opportunities, drive development projects, and support the government's long-term vision for sustainable economic diversification.

In addition to the investor residency proposal, the cabinet will also discuss plans to merge six state-owned enterprises (SOEs).

Among the items on the agenda is a proposal to make the Regional Airports Company Limited (RACL) a subsidiary of the Maldives Airports Company Limited (MACL).

Further discussions will address the merger of the Fahi Dhiriulhun Corporation (FDC) with the Housing Development Corporation (HDC) and the consolidation of the Maldives Fund Management Corporation with the Business Center Corporation (BCC).

Currently, RACL manages regional airports across the Maldives, while MACL operates Velana International Airport (VIA).

Both FDC and HDC are involved in housing development projects with similar mandates.

The mergers are part of the government’s broader austerity measures aimed at improving the state’s cash flow by consolidating insolvent SOEs with larger, more profitable entities.

The government has introduced a series of cost-cutting measures and revenue-generating initiatives, including legal reforms to the Aasandha health insurance scheme, the introduction of targeted subsidies, and requirements for companies with US dollar revenues to pay taxes in foreign currency.

These efforts come in response to the country’s rising external debt obligations, which led to Fitch downgrading the Maldives’ credit rating from ‘CCC+’ to ‘CC’, signaling an increased risk of default.