Maldives has been exploring possibilities of reducing its dependency on the tourism industry by introducing special economic zones (SEZ) and encouraging a diverse range of investments in them, with the broader objective of expanding the country's overall economy.
A special law for this purpose was implemented in 2014, and in the following year, the government announced the SEZ. However, efforts related to SEZ have been shelved unceremoniously, and it remains an unrealized dream to date.
In a special interview with Mihaaru News, the incumbent Minister of Economic Development Mohamed Saeed said that SEZ was established with the motive of introducing a third major economic industry.
Minister Saeed highlighted the political interventions and challenges in the past that halted any proceedings in the initiative but said the current President Dr. Mohamed Muizzu aims to realize it in light of the economic challenges Maldives experienced in the past years.
"He [Dr. Mohamed Muizzu] works very promptly, on a timeline, so it is his vision to establish SEZ if we are successful in introducing new projects for it as the third major industry of the Maldives," Saeed said.
The minister said that Maldives would not face unprecedented challenges seeking investment opportunities from international parties if any project is feasible within the country's environment. He highlighted potential for both medical tourism and energy sectors as examples of this, and noted renewable energy initiatives would reduce dependency on conventional fuel-powered electricity.
Minister Saeed said the initiatives were all possible prospects if the right effort is put, and said even one or two projects related to SEZ would expand the country's economy in the next five years exponentially.
Recently, the Maldives government, under a presidential decree published in the official government gazette, stipulated that an SEZ project "necessitates a minimum investment of USD 100 million (MVR 1.5 billion)".
The government also identified nine strategic investment sectors for the SEZ as well, which include; manufacturing, transshipment ports, and energy sectors among others.
"A country's stability is instrumental in attracting large-scale investments, especially political stability. Dr. Muizzu's administration has an open-arm policy for foreign investments, and the SEZ objectives have been formulated," Saeed said.
The minister announced plans of the government to execute investment forums to attract investors for SEZ. He added the administration has learned from the errors of past experiences, which have now been amended accordingly to ensure a more streamlined SEZ process.
Earlier, President Muizzu declared the state's ambition to turn 34 percent of the national electricity into renewable energy, which Saeed said would be a top priority while seeking SEZ investments.
"If investors are seeking opportunities to introduce low-cost and environmentally friendly renewable energy prospects, then we welcome it gladly. The core investment is USD 100 million, out of which a small portion would be allocated for tourism development; which remains a tested and proven approach in the Maldives," the Minister said.
Minister Saeed further highlighted the importance of large-scale investments towards US Dollar retention and increment of their flow in the Maldivian market, adding the government's prioritization on the initiative.
The new administration is concentrating its focus on seeking large-scale investments and big-league investors in an effort to increase the Maldives' economic output. Minister Saeed announced a policy of non-discrimination in seeking investors, with a focus based on their financial soundness and reliability.
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