Maldives Inks Agreement with IFZA to Propel Economic Development Plans

The Maldivian government has signed an agreement with Dubai’s International Freezone Authority (IFZA) to advance the creation of the special economic and financial services zone earmarked for Fonadhoo, alongside the Maldives’ envisioned economic gateway set for Ihavandhippolhu.

Under the terms of the Memorandum of Understanding, inked between Maldives’ Economic Minister Mohamed Saeed and IFZA’s chairman Martin Pedersen this morning, both parties are poised to embark on a collaborative journey towards this developmental endeavour.

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Following the signing ceremony, Minister Saeed addressed the press, outlining the government’s anticipation to formalise the agreement with IFZA within a projected timeline of five months.

This milestone follows a precedent set in March when the Maldives entered into an agreement with Vitol, the largest energy trader globally, to establish a bunkering facility in Ihavandhippolhu.

The Maldivian government’s strategic blueprint for Ihavandhippolhu, situated in the northern region of the archipelago, entails a phased development approach. Upon the completion of all three phases, the area is slated to host a spectrum of entities including Islamic finance centres, educational institutions, a research and development nexus, and residential quarters.

The envisaged amenities encompass a port, a cruise terminal, and an airport encircled by a residential enclave labelled “aero city”.

Simultaneously, Funadhoo, an industrial island in proximity to the capital, Male’ City, is earmarked for transformation into a financial nucleus. This transformation is set to feature financial institutions, conference venues, and hospitality establishments, aligning with the overarching vision for economic diversification and expansion.