Maldives to build a virtual currency and financial special zone with a scale of 9 billion Dollars in the capital Male in partnership with a Qatari royal family-affiliated company.

Table of Contents * 1. Virtual Currency City Concept in Malé, the Capital of Maldives

• 2. The Current State of the Maldives Economy and the Background of Fiscal Deterioration
• 3. Maldives Aiming to Become a Virtual Currency City

• 3.1. Bold Investment to Overcome Financial Difficulties
• 3.2. Qatari royal family-affiliated companies participate
• 3.3. New financial city in the Maldives targeting the wealthy

• 4. The Future of the Maldives' Challenge to Become a Cryptocurrency Hub

Cryptocurrency City Concept in Male, Maldives

The Maldives government has revealed that on May 4, 2025, it signed a contract in collaboration with the Dubai-based family office "MBS Global Investments" to construct a cryptocurrency and blockchain-related hub in the capital, Male, with a total scale of approximately $9 billion (about 1.3 trillion yen).

This agreement was signed on May 4, with the aim of securing new sources of income as the country seeks to break away from excessive reliance on tourism and fishing.

According to the Financial Times (FT), the upcoming "Maldives International Financial Center (MIFC)" will be built on approximately 830,000 square meters of land, housing 6,500 residents and creating up to 16,000 jobs.

The project is expected to take about 5 years to complete, and aims to generate annual revenues of over $1 billion (approximately ¥144 billion) within 5 years thereafter.

The Current State of the Maldivian Economy and the Background of Fiscal Deterioration

The Maldives is known as a tourist powerhouse in the Indian Ocean, but in recent years, the deterioration of the national finances has become serious.

By the end of 2024, the major rating agency Moody's has pointed out significant liquidity risks, and a situation is approaching where approximately $1 billion in external debt repayments is imminent, including $600-700 million in 2025 and $500 million in 2026 for Islamic bonds.

At the beginning of this year, efforts were made to avoid default by receiving an emergency loan of approximately $760 million (around 110 billion yen) from the Indian government, but the debt issue has not yet been resolved, and expanding revenue and diversifying the economy have become urgent tasks.

Maldives Aiming to Become a Cryptocurrency City

Bold investment to overcome financial difficulties

In recent years, the Maldives has received economic support from India and China due to financial difficulties, but such traditional forms of aid have not led to fundamental solutions to the problems.

In light of the current situation, the country's Minister of Finance, Moussa Zameer, stated that "a bold step is necessary to overcome the current predicament," and has embarked on this large-scale project.

Finance Minister Zameel also expressed gratitude to India and China, which have provided economic support so far, emphasizing that "the contract with MBS this time is not just a loan, but a new type of business partnership."

Qatari royal family affiliated company participating

The MBS Global Investments, which is partnering this time, is an investment company based in Dubai supported by Sheikh Nayef bin Eid Al-Thani of Qatar. It has been reported that he plans to proceed with the remaining fundraising through the wealthy network in the Gulf region, as he is a member of the Qatari royal family.

The company is reported to manage assets of approximately $14 billion (around 2 trillion yen) and has already secured investments ranging from $4 billion to $5 billion for the construction of the MIFC.

Nadeem Hussain, the Chief Executive Officer (CEO), stated, "We have established the partnerships necessary for fundraising. We also recognize the size of this amount," and indicated plans to raise the remaining balance by combining equity and debt.

New Financial City in the Maldives Targeting the Wealthy

MIFC is a special financial district to be established in Kuala Lumpur, which is expected to create an environment where corporate tax and inheritance tax exemptions, as well as foreign entrepreneurs and investors, can operate freely. By offering banking services in multiple currencies without residency requirements, it aims to attract remote workers, entrepreneurs, and wealthy individuals from around the world.

As a highlight of the plan, a state-of-the-art conference hall with a capacity of up to 3,500 people will be constructed, making it possible to hold international conferences and cultural events.

The development aims to create an attractive urban space where life and business are integrated, including a mixed-use high-rise building serving as a regional hub for international companies, luxury hotels, commercial facilities, a maritime museum, a mosque, and an international school.

According to the plan, development is expected to be completed by 2030, and it will become an advanced financial hub focused on sustainability, with climate-resilient infrastructure, the use of renewable energy, and pedestrian-centric urban design with vehicles placed underground.

President Mohamed Muiz stated, "Through the MIFC, we will concretely shape the future of the Maldives. This financial center will become a hub of innovation and will strengthen the nation's economic foundation," demonstrating confidence in the country's future.

The Future of Maldives' Challenge to Become a Cryptocurrency Hub

This announcement was made in the context of the increasing importance of virtual currencies (crypto assets) and the fintech industry globally.

Investment in virtual currency-related companies is also showing a global recovery trend, with the global venture investment amount in the first quarter of 2025 reaching approximately $5.4 billion (about 780 billion yen), the highest level since mid-2022.

However, it has been pointed out that for the Maldives to succeed as an "international financial center", it needs to compete against financial hubs that already have a step ahead, such as Dubai (United Arab Emirates), Singapore, and Hong Kong, which possess strong financial resources and well-established regulatory environments.

Dubai in the UAE is rapidly emerging as a virtual currency and Web3 hub with the support of the government. In March of this year, there was also a proactive move where a government-affiliated fund made one of the largest investments ever in the world's largest virtual currency exchange.

Hong Kong has attracted hundreds of related companies by implementing a clear licensing system and tax incentives, ranking second in the world in the "Cryptocurrency Friendly City Ranking" for 2025.

The challenges faced by the Maldives are positioned within this global trend, and there is growing attention both domestically and internationally on the direction of this large-scale project.

*The price is based on the exchange rate at the time of writing (1 dollar = 143.97 yen).

Latest cryptocurrency news here

Source: Financial Times report

Writing and Translation: BITTIMES Editorial Department

Thumbnail: AI-generated image