Maldives bets $8.8 billion on blockchain to counter economic and debt challenges

The Maldives has finalized an $8.8 billion agreement to build a blockchain-first financial hub that reportedly eclipses the nation’s entire economy. The country aims to reposition itself as a global destination for digital assets.

Per the Financial Times, Dubai-based MBS Global Investments will finance the Maldives International Financial Centre (MIFC) project.

The government signed the agreement on May 4, positioning MIFC as a tax-free zone in Malé, the capital. The site will cover 830,000 square meters and is projected to generate up to 16,000 jobs by 2030. MBS Global stated that approximately $4 billion to $5 billion of funding has already been soft-committed from high-net-worth individuals and family offices.

Maldives President Mohamed Muizzu framed the initiative as foundational for the nation’s long-term economic strategy, noting that it will serve as a “symbol of economic resilience.”

The deal arrives amid increasing debt vulnerability. According to World Bank data, the Maldives’ public and publicly guaranteed debt reached 146% of GDP in 2020, with $3.7 billion in external debt reported in 2023. In 2024, India provided a $760 million bailout to assist the country in avoiding default.

Through zero-tax policies and simplified regulatory structures, MIFC seeks to attract exchanges, token issuers, and Web3 investment funds. The move aligns the Maldives with a broader trend among smaller states competing for crypto capital. The RAK Digital Assets Oasis in the UAE and the Bahamas’ Digital Assets and Registered Exchanges (DARE) Act 2024 demonstrate that jurisdictions are increasingly constructing digital-asset-friendly frameworks to capture this sector.

MBS Global’s CEO, Nadeem Hussain, emphasized, “The financial centre will set a new global benchmark, advancing financial innovation by at least two decades. It is the next evolution of what has been happening in other financial centres around the globe.”

Still, questions remain about regulatory readiness. The nation will need to pass enabling legislation and establish oversight mechanisms to meet international anti-money laundering standards. FATF compliance will likely become a focal point as the project progresses.

The Maldives’ approach illustrates how small, tourism-dependent economies facing external debt pressures are exploring new sectors for diversification.

The financial hub’s scale relative to the country’s GDP makes it a global outlier and a test case for crypto-focused economic transformation.

The deal marks a sharp pivot for the nation, which now seeks to compete in a field where regulatory clarity and tax advantages determine the flow of capital.

Whether this ambitious initiative succeeds or strains existing governance capabilities will unfold as groundwork begins on the project, which is scheduled for completion by 2030.

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