Remarks by His Excellency Dr Mohamed Muizzu, President of the Republic of Maldives at the Invest Maldives Forum
Invest Maldives Forum
13 February 2024
Ref: SA/RMM/2024/16
Excellencies,
Cabinet Ministers,
Business delegates from the UAE and the Maldives,
Ladies and gentlemen,
And a very good evening.
It is my pleasure to be here in Dubai for this Invest Maldives forum. This is the second such forum that I am attending since I took office last year. The key objective of these sessions is to present the Government’s economic development plans and engage in discussions with the private sector. I am very happy to see a balanced mix of UAE based businesses and the Maldivian corporate sector present here today. This reflects your commitment to partner with the government in uplifting the Maldivian economy.
My Government firmly believes that foreign direct investment and partnerships with the private sector is the way forward in timely delivery of our development vision for the country. My administration’s development philosophy is one of engagement, partnership building and focused delivery, and I am confident that we are headed to achieve great things.
Distinguished delegates, ladies and gentlemen,
With the introduction of tourism to our shores in the 1970s, the Maldives has been on a progressive path of growth and development. The Maldives has undergone significant progressive changes over time, particularly in the economic sphere. We have made great strides in terms of infrastructure development, increasing revenue from the tourism industry, with focused investments in other key sectors such as fisheries to strengthen our resilience to global economic shocks that are part and parcel of the globalized environment today.
One of the key strengths of our economy remains to be our strategic location, with Maldives sitting at the crossroads of Asia and Africa, making our nation an ideal hub for trade, investment, and connectivity. Tourism remains our core strength, the unique strategic advantage that our pristine beaches, azure waters, and luxury resorts offer to visitors worldwide, which remains unparalleled.
As an emerging economy and a small island developing state, our challenges are also numerous in the face of tight liquidity in the global markets and our fiscal challenges arising from our appetite to enhance the growth trajectory through considerable investments into key infrastructures.
My Government is well aware of these challenges and well positioned to tackle them head on and turn them around to conditions favorable to us. The economic outlook for 2024 looks promising with tourist arrivals showing a growth of 11% in the first month compared to the same period last year. The International Monetary Fund in its report published on the Maldives last week noted that their expected growth rate for this year is in alignment with the government’s projections of 5.5%. Further, the IMF noted positively on the Government’s commitment to fiscal reform including restructuring of subsidies, rationalizing the public investment program and reforming operations on State-Owned enterprises.
We are committed to diversifying our economy to make it more sustainable and resilient to future shocks. Our manifesto outlines plans for diversification within the tourism sector and outside of it, by investing in key areas such as food security, strengthening fisheries sector, positioning the Maldives as a financial services hub, and investing in trade and logistics sector, maximizing on our strategic location.
Distinguished delegates, ladies and gentlemen,
My vision for the Maldives is to capitalize on our assets – our strategic geographic location, our unrivalled natural beauty, our vast ocean resources and the hospitable nature of our people to unleash our potential for growth and deliver a respectable standard of living for our people.
My administration is committed to implementing the necessary economic as well as social development programs to ensure this. Some of the key strategic projects on the economic front include relocation and redevelopment of the central maritime port of the country inclusive of a free zone, further expansion of the main international airport to cater for the next 15-20 years as well as the Maldives Economic Gateway project – an integrated maritime development in the northern-most atoll of the country which sits on 8-degree global maritime route. The master development right for the Maldives Economic Gateway has been assigned to Maldives Industrial Development Free Zone – a newly established state- owned company to drive government initiatives on economic security and economic diversification.
Improving housing conditions and ensuring an end to the continued housing crisis in the Maldives is one of the key pledges of my Government. This is where the RasMale’ project makes a difference, the first eco-city to be established in the Maldives. This is a project of critical importance, seeking a total solution to the housing crisis in the Greater Male’ Region. RasMale‘ is a unique project aimed at revolutionizing urban living and promoting innovation, sustainability, and inclusivity.
Expansion of the financial services sector is also a key priority of my administration. To this end, the Maldives International Financial Services Authority was established in January of this year, to drive development of a wide range of offshore and onshore financial services, and lead the efforts to structure an optimal legal and regulatory framework.
I note the extensive experience of UAE in establishment of the Dubai International Financial Centre as well as in development and operation of free zones. We are keen to learn from this experience and explore mutually beneficial partnerships.
Distinguished delegates, ladies and gentlemen,
As we embark on these strategic projects, we will continue to drive and strengthen our tourism industry to boost visitor numbers. In fact, the enhancement plans for the Velana International Airport is premised on the vast tourism and aviation potential of the country.
The Government has plans to diversify the tourism product by tapping into sports, education, adventure, medical and cultural tourism. We have set a target of over 2 million arrivals by the end of this year. The strong airline connectivity between the Maldives and the UAE, and other Middle Eastern countries is certainly a positive driver as we strive to achieve this milestone.
Our fisheries sector is renowned to the world as practicing the most sustainable harvesting methods. The Government is investing into expanding the cold storage and processing capacity by more than double. This will enhance value addition and maximize benefits to our fishermen and the industry.
On the social front we are committed to enhancing health and education infrastructure, as well as service delivery, for a capable and healthy workforce to drive economic transformation and growth.
While we do all this, we will continue to maintain our commitment for a sustainable future. Increasing the mix of renewable sources in meeting our energy requirements and adopting innovative waste management practices is a priority of my government. We announced the target of meeting 33% of power demand through renewable sources by 2028 at COP28 in Dubai, and it is a commitment that we intend to do everything we can.
Distinguished delegates, ladies and gentlemen,
UAE and Maldives have a long history of partnership spanning many decades. In fact, UAE is our top trading partner with total trade volume between both our countries close to half a billion dollars as of 2023, accounting for 12% of total imports. Further, we have a strong presence of UAE investors in the Maldives in a number of economic sectors – tourism and real estate being the most significant. I am happy to see quite a few of these investors present here today. I thank you all for your trust and patience.
The Agreement on Avoidance of Double Taxation and the Agreement on Promotion and Protection of Investments entered into by the Maldives and UAE in 2017 is testament to the belief by the governments of both countries of the future potential for trade and investment between them. The Double Taxation Avoidance Agreement has been in effect since 2017 with businesses of both countries gaining the benefits it offers. The Investment Protection Treaty will have the national laws that are needed to give effect to it within the next 2-3 months.
Distinguished guests, ladies and gentlemen,
The plans we have are ambitious – its expansive, and it cannot be done by the Government alone. This is where the role of bilateral, multilateral and private sector partnerships become crucial. Private sector led growth is essential to achieve the goals of transformation that we aspire for.
My government is committed to providing you a safe, secure and efficient space to carry out business in the Maldives. The Special Economic Zones framework has been reactivated providing attractive incentives for strategic investments of over 100 million USD. A completely new Foreign Investment Law is in the pipeline with provisions guaranteeing investment security and paving the way for execution of investment treaties.
The Government also recognizes the need to engage in Public Private Partnerships to achieve our developmental objectives. To this end, we are working on creating an enabling and conducive environment to facilitate private sector investments, streamline procurement processes to improve efficiency and transparency, and provide assurance for investors in safety and security of investment.
Distinguished guests and esteemed members of the audience,
We recognize the urgency of the economic challenges that the world is facing today, and we believe that by working together, we can overcome these challenges and emerge stronger and more resilient. So, let us seize this moment to explore synergies and create lasting partnerships.
Before I conclude, I would like to extend my sincere gratitude to all of you present here today.
I look forward to engaging with you all during networking time.
Thank you very much.