Addu Regional Free Zone Launched, Applications Now Open for Businesses

The Addu Regional Free Zone has been officially inaugurated, with applications now open for businesses seeking to operate within the zone.

The inauguration ceremony was held at Addu High School and was attended by Mohamed Saeed and Ali Ihusaan.

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Work on establishing the free zone began earlier this year through cooperation between Maldives Ports Limited, the Ministry of Economic Development, Transport and Trade, the Maldives Customs Service and other state institutions.

Under the project, approximately 1.7 hectares of land from the Hithadhoo Port area has been allocated for the development of the zone, while a 20,000 square foot area has been prepared for free zone operations. A duty-free cargo and storage area has also been designated at Hithadhoo Regional Port.

Economic Minister Mohamed Saeed said the future development of Addu City would be guided by the needs and views of local businesses. He said the government plans to introduce special concessions and incentives between 2027 and 2029 to attract investment into the zone.

The minister noted that free zones remain a relatively new concept in the Maldives but are widely used in industrialised and neighbouring countries to promote economic growth. He said the Addu free zone is expected to create significant economic opportunities.

The government is also seeking to establish an investment-friendly legal framework to attract both local and foreign investors. The minister said cooperation between the government, businesses and other stakeholders would be essential for the project’s long-term success.

The free zone will facilitate activities including duty-free storage, bonded warehousing, vehicle refurbishment, manufacturing and re-export services. Land allocation rates for businesses operating in the zone have already been determined.

Businesses have been invited to submit proposals for operations within the free zone between 13 May and 11 June. Applications are required to include details such as land requirements, proposed business activities and lease arrangements.