Maldives start a 9 billion dollar blockchain hub-Crypto Valley Journal

The Maldives have announced an ambitious project to diversify their economy and to establish themselves as a global center for digital financial services. A financial free zone for blockchain and cryptocurrencies should attract foreign capital.

With a planned investment of $ 9 billion through the MBS Global Investments based in Dubai, the Maldives International Financial Center is to be created in the capital Malé. This project exceeds the country's annual gross domestic product of around $ 7 billion and aims to reduce the dependence on tourism and fishing, like the Financial Times reported.

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The planned financial center will extend over 830,000 square meters, offer space for 6,500 residents and create up to 16,000 jobs. The Maldivian government expects the financial free zone for blockchain and digital assets to triple GDP of the country within four years and from the fifth year to generate over $ 1 billion in income. The project is to be financed by a combination of equity and debt, with commitments of $ 4 to $ 5 billion.

MBS Global Investments, which acts as a family office by Sheikh Nayef Bin Eid Al Thani, has extensive experience in the financing of major projects. The investment company would like to support the project with a consortium of Family Offices and wealthy private individuals.

Billion -dollar project with geopolitical potential

To support this project, President Dr. Mohamed Muizzu founded the Maldives International Financial Services Authority (MIFSA) in January 2024. This authority is intended to create a robust legal framework for onshore and offshore finance services and promote the development of the financial sector in the country. The announced investment only comes a few months after India has launched a rescue package of $ 760 million for the Maldives to avert a possible state bankruptcy.

Despite political stability and strategic location, the Maldives are faced with the challenge of asserting themselves against established offshore finance centers such as Dubai and Mauritius. The success of this project will significantly depend on how effectively the country can attract international investors and create a competitive regulatory environment.