President Dr Muizzu Declares “Project Solar City” as Maldives’ First Special Economic Zone, Signaling Shift Toward Clean Energy and Diversified Growth

During his state visit to Singapore, His Excellency President Dr Mohamed Muizzu formally announced the designation of “Project Solar City” as the Maldives’ first-ever Special Economic Zone (SEZ), marking a new phase in the nation’s strategy to diversify its economy and enhance long-term energy sustainability. The declaration was made following the issuance of Presidential Decree No. 1/2025, which establishes the legal framework for SEZ development under the Special Economic Zones Act (Act No. 24/2014).

“Project Solar City” is the first SEZ to be approved under the newly defined economic policy direction of the Muizzu administration. The declaration grants the project full operational authorisation as a High Technology Park, with wide-ranging commercial privileges. The project is designed to combine renewable energy development with tourism, logistics, and real estate infrastructure, offering a unique, integrated economic model for the island nation.

The official Investment Agreement for the zone was signed between the Government of Maldives and APM SPV Pvt. Ltd., a dedicated project development company, during the Maldives–Singapore Business Forum. The agreement paves the way for immediate implementation and allocates key responsibilities for infrastructure development and service delivery within the designated zone.

Under its SEZ mandate, “Project Solar City” is authorised to undertake the following core activities:

1. Construction and operation of a 100-megawatt floating solar photovoltaic (PV) system, supporting the government’s target of sourcing 33% of national electricity demand from renewable energy by 2028.

2. Development of a MICE-capable tourist facility (Meetings, Incentives, Conferences, and Exhibitions), creating space for international events and business travel.

3. Establishment of a logistics, storage, and industrial hub, facilitating regional trade and supply chain efficiency.

4. Real estate development within the zone to support commercial and residential growth tied to the core industries.

The SEZ designation brings with it a comprehensive package of investment incentives, including tax relief, duty exemptions, and regulatory flexibility tailored to attract international investors. The Presidential Decree also outlines detailed geographic mapping of the SEZ, clarifying its development footprint and operational boundaries.

Positioned as a model for sustainable, innovation-led development, “Project Solar City” is expected to serve as a catalyst for economic diversification, reducing the Maldives’ traditional reliance on tourism while opening the door to high-impact foreign investment. The project also represents a strategic alignment with President Muizzu’s Vision 2040, which prioritises green energy, infrastructure modernisation, and digital transformation as pillars of national progress.

As the first initiative launched under the updated SEZ framework, Project Solar City underscores the government’s intent to attract forward-thinking investments and promote resilience through targeted policy reform. With its integrated focus on clean energy, business travel, logistics, and real estate, the project offers a glimpse into the Maldives’ evolving development landscape, positioning the country as not only a world-renowned tourist destination, but also a dynamic platform for sustainable investment and innovation.