Maldives inks deal with Dubai's IFZA to develop Financial Zone in Fonadhoo and Economic Gateway in Ihavandhippolhu

12 May 2024 | 12:56
Maldives' Economic Minister Mohamed Saeed and IFZA's Chairman Martin Pedersen during the signing ceremony today (Photo/Adhadhu)

In a significant development bolstering economic ties between Dubai and the Maldives, the International Free Zone Authority (IFZA) has announced its decision to invest in the island nation.

A memorandum of understanding was formalized during a signing ceremony held today, where Maldives' Economic Minister Mohamed Saeed and IFZA's Chairman Martin Pedersen exchanged commitments.

Under this agreement, IFZA will spearhead the establishment of a specialized economic and financial zone in Fonadhoo, while also participating in and investing in the integrated maritime project in Ihavandhippolhu Atoll, a key component of the Maldives Economic Gateway project.

The decision to invest in Maldives reflects the synergies generated from the country's participation in the Dubai Investment Forum on February, highlighting the growing collaboration between the two nations.

This move follows a recent agreement signed in March with Vitol, the world's largest energy trader, to construct a bunkering facility in Ihavandhippolhu Atoll.

This atoll holds strategic importance in the Maldivian government's plans for economic diversification, earmarked as a crucial element in the development of an international port, a strategic oil terminal, and various marine activities.

In parallel, efforts are underway to transform Funadhoo into an industrial hub, situated in close proximity to the capital, Male’ City.

Plans include the establishment of financial centers, convention facilities, and hotels, alongside the relocation of fuel storage to Maagiri Falhu and the development of a financial services hub in Fonadhoo.

IFZA, renowned as the most dynamic free zone community in the UAE, is well-positioned to facilitate and enhance the business environment for free-trade enterprises in Dubai.