The Government of Maldives has announced an ambitious plan to develop Addu City into the nation’s leading information technology hub, reinforcing its broader strategy to stimulate economic growth and strengthen small and medium enterprises. The announcement was made by President Dr Mohamed Muizzu during his Presidential Address at the opening of Parliament this year, where he outlined a forward-looking vision to designate specific regions, including Hulhudhoo and Meedhoo in Addu City, as SME-focused economic zones designed to drive innovation, productivity, and sustainable development.
Under this initiative, Addu City will officially be designated as a special SME zone starting 1 January 2027. The designation is expected to provide a strong foundation for digital entrepreneurship and technology-driven businesses through targeted tax incentives, enhanced infrastructure, and more efficient regulatory processes. By positioning Addu City as a centre for IT services and SME growth, the government aims to create new economic opportunities, diversify income streams, and attract both local and international investment to the southern region of the country.
President Muizzu further highlighted that the beginning of 2026 will be recognised as the Maldives’ “Year of Productivity,” with a strong emphasis on building a resilient and inclusive economy powered by small businesses. SME empowerment has been identified as a key pillar of this agenda, reflecting the administration’s focus on enabling innovation, supporting private sector growth, and ensuring that economic progress is broadly shared across communities.
Concrete measures have already been implemented to support this vision. The government has disbursed USD 1 billion to clear outstanding debts owed to small businesses by state-owned enterprises, providing much-needed liquidity and restoring confidence within the SME sector. Additional reforms aimed at reducing operational bottlenecks include extending airport cargo clearance services to 124 hours, increasing port storage periods without demurrage fees to 10 days, and converting damage and freight charges to Maldivian Rufiyaa to simplify transactions and lower foreign exchange exposure for businesses.
Efforts are also underway to reduce the overall cost of doing business. Café fees have been reduced by 50 percent, and from March, companies employing more than 20 foreign workers will benefit from a waiver on foreign employment quotas. These measures are intended to ease financial pressures on businesses, encourage expansion, and support job creation across multiple sectors.
Digital transformation remains a central component of the government’s economic strategy. Partnerships with global platforms such as PayPal, Alibaba, and Swipe are accelerating digital financial integration, improving access to international markets and modern payment solutions for Maldivian enterprises. At the same time, SME Digital is providing low-interest financing options to help businesses adopt technology, scale operations, and enhance competitiveness.
Further strengthening the business ecosystem, the new Business and Commercial Center building, scheduled for completion by November, is expected to serve as a central hub for enterprise development. The facility will provide a dedicated space for business support services, collaboration, and innovation, reinforcing Addu City’s role as a dynamic centre for SMEs and the digital economy. Collectively, these initiatives signal a clear commitment to fostering a modern, productive, and globally connected Maldivian economy, with Addu City positioned at the heart of this transformation.
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