Government to Launch Three-Year SME Relief Pilot in Addu City From January

The government will roll out targeted economic concessions for small and medium enterprises (SMEs) in Addu City starting 1 January, launching a three-year pilot initiative aimed at stimulating regional business activity and local employment.

President Dr Mohamed Muizzu announced the framework last night during the Maldives Expo 2026 Awards Ceremony, confirming that Addu City will serve as the inaugural zone in a broader strategy to establish designated SME development zones across the country.

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Under the pilot programme, qualifying enterprises operating within the designated zone will receive a series of fiscal and regulatory relief measures. 

These incentives include full income tax waivers, exemptions on state-leased land rent during the first year of operation, and an increase in foreign worker employment quotas from 20 to 30.

“Concessions are to be granted to the SME sector by designating different zones across the Maldives,” President Muizzu said. “In that regard, what we decided and announced in the Presidential Address is that we will begin with Addu City as the first zone.”

The President stated that the primary objective of the policy is to generate employment, foster enterprise growth, and expand household and commercial income within the southernmost atoll.

“This is a pilot project we are launching,” he added. “Following the implementation of this pilot project in Addu City, it is designed to be replicated across other regions designated into zones throughout the country. This will also be a golden opportunity for those working in the SME sector.”

The Addu City pilot represents the first phase of the administration’s regional zoning economic agenda, with officials intending to assess the three-year trial before deciding whether to introduce identical concessionary frameworks to other atolls.