President Dr. Mohamed Muizzu has announced the conversion of Addu to an IT hub, along with three-year concessions for Small and Medium Enterprises (SMEs) where they would not have to pay rent and tax to the state.
While giving this year's Presidential Address at Parliament, President Muizzu said that the government has decided to open up designated areas in Maldives for investment for specific time frames with concessions, so as to increase, stabilize and promote SMEs.
The President stated that this includes an arrangement where rent and tax to the state such as plot rental payments and income tax would not have to be paid at the designated areas, along with other concessions.
"Addu City, Addu Hulhudhoo and Addu Meedhoo within Addu Atoll will be the first region where SME investments will receive concessions for three years from January 2027," said President Muizzu.
He went on to say that legal, administrative and financial arrangements will be made within this year to facilitate the enforcement of the aforementioned.
"With this, there is hope that the SME industry will expand, progress, create new employment opportunities and benefit Addu Atoll and the entirety of Maldives economically," said President Muizzu.
"The government invites all interested parties to transform Addu Atoll into Maldives' IT hub by taking hold of this opportunity."
President Muizzu stated that the biggest obstacle in advancing SMEs is the absence of a stable online payment system in Maldives. In order to solve this, President Muizzu said that work is being done to make PayPal operational in Maldives, with it set to be arranged very soon.
He also highlighted the multi-currency digital wallet Swipe, which was introduced by BML as a 100 percent Maldivian-made product which allows for international transactions.
"As a result, citizens of Maldives and tourists who come to Maldives will be able to make their deposits into this wallet easily and conduct transactions while in Maldives," said President Muizzu.
SME highlights by President Muizzu
- Under the agreement with Alibaba.com, Maldives now has the opportunity to sell its own products on the international market. A platform has been established on Alibaba.com where the 400 vendors from Authentic Maldives can conduct online business.
- Arrangements have been made where WeChat Pay is now included in BML's POS terminal network as a means of ease for the public and businesses.
- The introduction of the Thijarah Rashu Fathuru, which is a Sharia-compliant financing facility made for the benefit of SMEs in the tourism industry. A financing product, Vessel Financing, which offers financing up to MVR 5 million for maritime vessel operations for SMEs was also introduced.
- A financing facility which provides financing up to MVR 500,000 for content creators and film producers has also been introduced.
- The application window has been opened for a finance scheme which has been designed specifically for the progress of women-owned businesses, where financing from MVR 25,000 to MVR 200,000 will be arranged under the Islamic Banking Regulation.
- Applying for Islamic Micro Financing via SME Digital is now possible where those who have had trouble gaining financial assistance and those who start up businesses for the first time can receive funding up to MVR 100,000.
- Arrangements have been made where Indian Rupee and Chinese Yuan accounts can now be opened online by the general public and businesses.
- A reduction of business loan equities from 30 percent to 20 percent, with an increase to the payment window from 15 years to 20 years.
- The Merchant Fee has been reduced from 2.5 percent to 1 percent.
- SMEs can now apply for financing at a 1 percent rate via SME Digital.
- The construction of the Creators Hub by BCC is important for SMEs and more so in establishing a creative economy in Maldives. The building will have space for Maldivian artists to do work related to their craft. The sheet laying work for the 8th floor of the building has been completed. The building is set to be completely finished and opened on 11th November.
