Spotlight –
Celebrating 35 years of Maldivian hospitality, Sun Siyam Resorts reflects on its journey from a single island dream to a global brand rooted in authenticity, innovation and the spirit of the Maldives.
Forty-Five Years On: How The Maldives Rewrote Its Economy, And The Risks That Remain
A Small State, a Global Voice: Maldives at the General Assembly
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Chief Executive Officer
Akhmeem Abdul Razzaq
Chief Content Officer
Mohamed Khoorsheed
Chief Digital Officer
Ibrahim Areef
Chief Operating Officer Ahmed Nasir
Chief Creative Officer
Zaya Ahmed
Chief Design Officer
Hamdhoon W.
Chief Commercial Officer Raaya Abdulla
Chief Editor Nashama M.
Managing Editor Ibrahim Maiz
Content Manager Ali Rishfan
Managing Editor Ali Yoosuf
Marketing Manager
Aminath Suha Mohamed
Assistant Editor Maanee Mohamed
Multimedia Journalist Ahmed Shaif
Multimedia Journalist Fathimath Lamya Abdulla
Office Assistant Mohammad Ratan
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Welcome to the November 2025 edition of Corporate Maldives Magazine.
This quarter’s Corporate Maldives Spotlight marks a milestone in Maldivian hospitality as we celebrate 35 years of Sun Siyam Resorts. In an exclusive interview, Founder and Chairman Ahmed Siyam Mohamed reflects on his journey from humble beginnings to leading one of the country’s most recognised resort brands. His story captures not only the spirit of entrepreneurship but also the evolution of Maldivian hospitality itself.
Beyond the Spotlight, we examine a nation in transition. Our Government and Economy section looks at shifting fiscal priorities and the balance between ambition and accountability, while Foreign Policy revisits sixty years of Maldives at the United Nations. In Climate and Technology, we explore resilience, renewable energy, and the emerging need for AI governance.
Across these pages, the stories reflect a country learning to adapt to change while holding on to what defines it.
Thank you for reading.
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CORPORATE MALDIVES SPOTLIGHT: SUN SIYAM GROUP
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GOVERNMENT & ECONOMY PEOPLE
TOURISM & AVIATION
34 56
CLIMATE
64
HUMAN RESOURCES
BANKING & FINANCE
52 71 90
EDITORIAL
78
FOREIGN POLICY
84 TECHNOLOGY & INNOVATION
For over three decades, Mr Ahmed Siyam Mohamed has been one of the most influential figures in Maldivian hospitality. As the Founder and Chairman of Sun Siyam Resorts, his story mirrors that of the nation’s tourism journey itself, one built on vision, perseverance, and a deep love for the islands. In this exclusive conversation with Corporate Maldives, Mr Siyam reflects on his humble beginnings, the evolution of his brand, and what lies ahead for the next generation of Maldivian entrepreneurs.
CHAIRMAN, SUN SIYAM RESORTS
When you think back to your earliest ventures, what was the spark that pushed you to become an entrepreneur?
Looking at your career so far, what moments best capture the essence of your entrepreneurial journey?
From a very young age, I had an unshakable desire to stand on my own feet. At 16, I began taking on part-time jobs, anything that would allow me to gain experience, be independent, and contribute to my family. After leaving school, I enrolled in hotel school, which became the foundation of my lifelong passion for hospitality. That journey took me through almost every department of a resort, from receptionist, cashier, and billing clerk to accountant, purchasing, front office, reservations, sales, marketing, storekeeping, and logistics, and later as an airport representative, welcoming guests from around the world.
It was during that time, meeting travellers and understanding their first impressions of the Maldives, that I realised how much potential our islands held. The Maldives was still at the very beginning of its tourism story, but I saw what it could become, a destination where beauty, culture, and hospitality unite to create something truly world-class. That belief gave me the courage to take a leap of faith.
In 1990, with just 900 dollars, two desks, and a fax machine, I founded Sun Travels & Tours. It started small, but it was built on determination, curiosity, and a clear vision: to share the true essence of Maldivian hospitality with the world. That same spark continues to drive me today, the belief that with hard work, innovation, and heart, even the smallest ideas can grow into something extraordinary.
My parents played a profound role in shaping who I am. My father was the island chief, the katheebu, of Noonu Kudafari, and growing up, I watched how he led our community with humility, fairness, and compassion. My parents taught me that true leadership is not about authority, but about service, about loving and caring for people and helping them grow. That belief became the foundation of everything I have built.
When I opened my first resort, Sun Siyam Vilu Reef, in 1998, it was a defining moment. I wanted to create a place that felt like a Maldivian home, not just a hotel, but a heartfelt experience that reflected who we are as a people. From there, the journey grew into something much larger, a collection of resorts that carry the same warmth, authenticity, and spirit of the islands.
Another milestone that stands out is watching young Maldivians rise through the company. Many of our leaders today began as trainees and have grown into managers and directors. That gives me the greatest sense of pride, seeing others succeed and knowing that Sun Siyam has created opportunities for so many.
Every step of this journey, from my parents’ lessons to building teams, creating destinations, and sharing our culture with the world, captures what entrepreneurship means to me. It is not only about growth or success, but about leaving something meaningful behind for future generations.
Sun Siyam has grown from modest beginnings into a leading hospitality brand. How do you see the company’s identity today compared to when you first started?
Every strong brand has to evolve. What does the recent rebranding of Sun Siyam represent to you personally, and what kind of future are you building through it?
When I first started, my vision was simple: to give travellers an experience that felt authentically Maldivian. I wanted guests to discover our islands’ love, care, and respect through our people, our culture, and our hospitality. That sense of sincerity and warmth has always been at the heart of what we do. I created my own business model, one that has helped us grow from a local venture into a global name.
Over time, what began as a single property has evolved into a global brand, one that continues to evolve while staying deeply rooted in our identity. Today, Sun Siyam represents a perfect balance between authenticity and innovation. We deliver worldclass experiences while keeping the human touch and heartfelt service that define us.
As we celebrate 35 years of Maldivian hospitality, our brand (r) evolution reflects this journey of growth and purpose. A single identity now unites all our properties under The House of Siyam, a home for our five Maldivian resorts and our Sri Lankan retreat. To help guests and partners navigate our portfolio, each property now belongs to one of three distinct collections: Luxury, Privé, and Lifestyle.
This new structure celebrates the diversity of our destinations while reinforcing one shared philosophy: to offer experiences that go beyond the expected. Whether it is barefoot romance, family adventure, or sophisticated seclusion, every Sun Siyam property carries the same soul, shaped by the spirit of the Maldives and a promise of genuine connection.
For me, the rebranding represents renewal, a reflection of how far we have come and a statement about where we are heading. It goes beyond a visual change; it is about redefining how we express our values and tell our story to the world.
Personally, it symbolises pride, in our people, our heritage, and in what we have built together over the years. This transformation allows us to communicate that more clearly: that Sun Siyam is not only about beautiful resorts, but about heartfelt connections, creativity, innovation, and community.
Through this new chapter, we are setting the foundation for the next generation, one that embraces innovation and sustainability while staying rooted in authenticity. It is about creating a future where Maldivian hospitality continues to inspire the world, led by a brand that carries its legacy forward with purpose, confidence, and heart.
What principles or habits do you believe separate those who dream from those who build lasting enterprises?
Two words: respect and determination.
You must respect your team, your guests, and the community around you. That foundation of respect builds trust and loyalty, the cornerstones of any successful business. Today, the Sun Siyam brand has earned trust globally, with business partners, international institutions, and financial organisations, because our business is built on integrity.
Then there’s determination, the will to keep moving forward even when the journey gets difficult. Dreams become reality only when paired with perseverance. You must be willing to put in the work, take risks, and stay disciplined, one step at a time.
When you imagine tourism in the Maldives a decade from now, what do you think will look entirely different from today?
I believe the Maldives will continue evolving towards a more sustainable, experience-driven, and culture-rich model of tourism. Travellers today no longer come just for the scenery, they come seeking meaningful memorable experiences. They want to connect with the places they visit, understand local traditions, and leave feeling part of something genuine.
In the coming decade, I see the Maldives embracing that even more deeply. Our future lies in experiences that go beyond the villa, celebrating our music, art, craftsmanship, and cuisine, and offering guests new ways to engage with our people and our environment. Sustainability will become second nature, not just a feature, and innovation will help us preserve what makes our islands special while opening new ways for guests to enjoy them responsibly.
We are also welcoming a more diverse generation of travellers, families, digital nomads, sports enthusiasts, groups of friends, and young explorers, each looking for connection in their own way. The Maldives of the future will be more inclusive, more creative, and more connected to its roots. True growth will come from evolving without losing our soul, in safety, balance, and harmony.
What opportunities do you see for young Maldivians in business, and how do you hope Sun Siyam can play a role in shaping that future?
When the story of Siyam is told years from now, what do you most want it to say about you
and the impact you created?
I have always believed that the future of our country rests in the hands of our young people. Across Sun Siyam Resorts today, every General Manager, Resort Manager, and most of our Directors and senior leaders are Maldivian, proof of what is possible when local talent is given the right platform. Our people are incredibly capable, creative, and determined, and I want to see even more of them leading the next chapter of our nation’s growth.
That is why we continue to invest in education, mentorship, and structured career pathways. The launch of the Sun Siyam Apprenticeship Programme, in partnership with the Ministry, is one of our proudest milestones, giving young Maldivians handson experience across departments from diving and engineering to finance, IT, and the culinary arts. This is not just training; it is an investment in confidence, capability, and long-term success.
My hope is to build a generation that does not only work in hospitality but helps redefine it, a generation that thinks differently, acts responsibly, and continues to carry forward the values of Maldivian hospitality with pride.
Throughout my journey, I have focused not only on building a successful company but also on building communities, giving back, creating opportunities, and supporting growth beyond business. When island communities thrive, the nation thrives.
I hope my story says that I helped share the true Maldivian spirit with the world, that through Sun Siyam, we showcased the warmth, generosity, and creativity of our people. I would like to be remembered as someone who believed in the power of dreams, who built with heart, and who always stayed true to his roots.
As Sun Siyam Resorts celebrates 35 years, Mr Siyam’s words echo the brand’s enduring philosophy: that true hospitality begins with heart. His journey from a teenage hotel trainee to one of the most prominent entrepreneurs in the Maldives reflects not just personal achievement, but a national story of vision, resilience, and belief in the people who make these islands shine.
It began as a dream on an island of white sand and restless wind. When Ahmed Siyam Mohamed founded what would later become Sun Siyam Resorts in 1990, the Maldives was still defining its place in the world of hospitality. There were few resorts, fewer paved runways, and almost no local names shaping their own narrative. Yet Siyam imagined a future where Maldivian warmth, generosity, and character could define luxury on their own terms.
Three and a half decades later, that vision continues to grow. As Sun Siyam celebrates its 35th anniversary, the company has undergone a transformation that feels both bold and deeply personal. The reimagined identity, expressed through the phrase The Home of the Maldivian Spirit, reflects a renewed commitment to authenticity. It speaks to an understanding that true hospitality lies not only in design or service but in the way people make others feel, that quiet, unmistakable sense of belonging.
The brand’s evolution has gathered all its properties under one name, The House of Siyam, a unifying structure that gives clarity to a growing portfolio. Within it, three collections now define the experience: Luxury, Privé, and Lifestyle. Each tells a different story. Sun Siyam Iru Fushi anchors the Luxury Collection, where indulgence takes a graceful, understated form. The Privé Collection includes Iru Veli, Vilu Reef, and Pasikudah in Sri Lanka, which celebrate intimacy and reflection. Meanwhile, Olhuveli and Siyam World represent the energy and colour of the Lifestyle Collection, where adventure and connection meet. Together they form a living narrative of Maldivian hospitality in all its dimensions.
Behind the visual changes lies an introspective process that began within the company itself. To understand what “Maldivian spirit” truly means, Sun Siyam looked inward, to the rhythm of island life, to the sound of Bodu Beru, to the ease with which strangers become family. The result is a brand philosophy shaped not by market trends, but by genuine emotion and heritage.
That guiding sentiment continues to shape the brand even as it embraces new forms of expression. The reimagined design language captures the natural colours of the islands, the curve of the shoreline, and the ease of island life. The newly launched Siyam Rewards loyalty programme strengthens the relationship between guest and host, while a refreshed website and digital presence bring that same sense of belonging online.
To realise this transformation, Sun Siyam partnered with JHAGGER&CO as lead brand advisors, London-based StudioSixty7 for creative direction, and hospitality pioneer Dominik Ruhl to refine operations and service standards. The result is a cohesive identity that feels distinctly Maldivian yet forward-looking. Every detail, from interior accents to digital design, carries the same quiet confidence.
The 35-year milestone marks more than endurance. It reflects a maturity that comes from staying close to one’s roots while adapting to the world’s changing rhythm. Sun Siyam’s evolution is both an act of reflection and a statement of intent, a promise that the soul of the Maldives will continue to inspire every stay, every smile, and every story that begins on its shores.
Every journey begins the moment a guest steps onto an island, when the heat of the air mingles with the scent of salt and frangipani. At Sun Siyam, this first impression becomes more than a welcome. It marks the beginning of a story told through carefully considered moments that capture the essence of the Maldives.
The group’s Signature Experiences were created to translate the rhythm and culture of the islands into something tangible. Each one carries its own character, designed to evoke connection and wonder. From culinary rituals that reflect Maldivian heritage to nights beneath the stars, these experiences bring together creativity and authenticity in ways that feel both new and familiar.
At the heart of it lies Maldivian Roots, a weekly celebration of food, storytelling, and tradition. The flavours of coconut, tuna, and curry leaf are served alongside stories that travel from island kitchens to fires by the shore. What might once have been an everyday meal becomes a shared experience that brings people closer to the culture and its spirit.
The Insta Villa, the Maldives’ first overwater photo studio, redefines the art of capturing paradise. Designed for those who want to hold onto fleeting moments, it transforms light, reflection, and perspective into lasting memories. This unique Sun Siyam initiative invites guests to experience a taste of top-shelf luxury for just a few hours, whether during the golden hues of sunset or the tranquil glow of the lagoon. Perfect for creating envy-inducing, Instagram-worthy shots, guests can even opt for a private session with the resort’s in-house photographer to ensure every frame tells a story of island beauty. During quieter periods, Insta Villas offer a creative way to enjoy the best of Sun Siyam’s tropical portfolio while turning every image into a postcard-perfect memory.
Then there is the Sun Siyam Beach Club, where afternoons of quiet ease unfold into evenings of music and movement. The air shifts from stillness to rhythm as the sky fades from gold to violet, and the shoreline transforms into a meeting place for joy and connection.
For those drawn to slower pleasures, Plant-Based Bliss and Moonlit Cinemas invite reflection. The first brings mindfulness into dining, celebrating simplicity and freshness in every dish. The second turns an ordinary night into a small act of wonder, with films projected under the stars and the sound of waves in the background. Together, they remind guests that moments of calm can be as meaningful as those filled with energy.
Across every property, these experiences form a common thread that ties the Sun Siyam resorts together. They represent a philosophy of hospitality that values emotion as much as beauty. Each detail has been designed with care, inviting guests to connect not only with the islands but also with themselves.
In a world where travel often rushes past its own meaning, Sun Siyam continues to create spaces where time slows and memories deepen. The Signature Experiences give form to this idea, allowing the spirit of the Maldives to be felt through taste, sound, and atmosphere. Guests may arrive seeking escape, yet they often leave with something far greater, a quiet sense of belonging to a place that feels alive.
Sustainability at Sun Siyam began with awareness. Long before it became a global priority, the team recognised that the Maldives’ natural beauty was both its foundation and its responsibility. Protecting it became a natural part of daily life. Over time, that awareness evolved into Sun Siyam Cares, a programme that unites environmental stewardship with social progress, turning care into a shared value across the company’s resorts.
At its core, Sun Siyam Cares is a living framework that shapes how energy is used, how waste is managed, and how people interact with the ecosystems around them. Across the islands, solar installations now reduce reliance on fossil fuels, while wastewater is treated and reused. Efforts to eliminate singleuse plastics continue, supported by community education that helps lasting change take root. Each small action strengthens a wider purpose: preserving the environment that sustains both the resorts and the communities nearby.
The ocean plays a central role in this story. Marine biologists based at each property work closely with guests and local teams to restore coral reefs, monitor marine life, and encourage awareness through guided experiences. These efforts invite participation, giving visitors a chance to see how life beneath the waves depends on the choices made above them.
The initiative reaches far beyond environmental work. In neighbouring communities, Sun Siyam Cares supports schools, provides scholarships, and opens pathways for young Maldivians to build careers in hospitality. Training and mentorship programmes have helped many employees grow within the company, transforming opportunity into empowerment. The result is a workforce that reflects the spirit of the islands and contributes to their development.
Siyam World Maldives has taken a pioneering step in sustainable tourism with the launch of the Maldives’ first large-scale Plastic Upcycling Center, developed in partnership with local NGO CLEAN Maldives. The facility transforms discarded plastics from both the resort and nearby communities into practical items such as sunbeds, planters, and outdoor furniture—recycling over 10,000 kg of plastic annually. Beyond its operational impact, the initiative promotes circularity, community collaboration, and education through guided tours and awareness programs, reinforcing Sun Siyam’s ongoing commitment to responsible innovation and environmental stewardship in the Maldives.
Health and well-being form another layer of this philosophy. From community clean-ups and blood donation drives to wellness and mental health awareness sessions, the group’s social initiatives nurture a sense of shared responsibility. These programmes bring together employees, guests, and local communities, showing that care extends to both people and place.
Through every effort, one idea remains constant: sustainability carries its greatest meaning when it is shared. Guests who stay at any Sun Siyam property contribute directly to this vision, supporting marine conservation and community outreach with each visit. The approach has turned sustainability into a lived philosophy that shapes both guest experience and company culture.
As climate challenges grow, the work of Sun Siyam Cares continues to adapt. The team keeps finding new ways to balance comfort with conscience, ensuring that the islands remain places of life and beauty for generations to come. This steady commitment to protect the Maldives’ future by nurturing its present gives Sun Siyam its green heart, a reflection of what happens when progress and preservation move forward together.
To encourage healthy lifestyles and youth engagement, Sun Siyam Care funded and developed a fully equipped outdoor gymnasium and football ground at Bandindhoo Island, and a community football ground at Hulhudheli Island. These facilities have become central hubs for recreation, community connection, and youth empowerment.
Sun Siyam Care has supported local schools and social centers by providing equipment and renovation support, helping to enhance learning environments and encourage inclusive community growth. The program has also contributed to mosque developments, strengthening cultural and spiritual wellbeing across island communities.
Before the first guests step onto the sand, the island is already awake. The faint hum of a dhoni engine echoes across the lagoon, and somewhere near the palms, Abdulla Ibrahim is already at work. It is barely dawn at Sun Siyam Olhuveli, and the gardens glisten in the early light as he trims the edges of the walkways. For more than two decades, this rhythm has shaped his mornings, a routine not of repetition but of belonging.
Abdulla’s journey with Sun Siyam Resorts began in 1995, long before the brand became a household name in Maldivian hospitality. He joined as a supply dhoni captain at Vilu Reef, later moving to Olhuveli, where he learned the foundations of resort operations. From labour supervisor to landscaping manager, his career has grown in step with the company itself.
“Sun Siyam Resorts feels like home,” he says. “It has given us real opportunities to grow.”
The same sense of home runs through the resort’s kitchens, where Executive Chef Hassan Didi has spent more than thirty years perfecting his craft. His story began in 1993, when Olhuveli was known as the Olhuveli View Hotel. Starting as a commis chef, he rose through the ranks with steady persistence, from Japanese and international kitchens to the top of the culinary team. Training in Japan, Malaysia and Thailand broadened his skill, but his roots have always remained here, among the islands.
“The Maldivian spirit,” he says, “is warmth, humility, and hospitality. It’s about creating genuine connections.”
That belief carries into every dish prepared under his watch. The clatter of the morning kitchen is a language of its own, knives meeting chopping boards, the fragrance of local spices filling the air, the laughter of young chefs he mentors. Many of those who once trained under him now lead kitchens across the Maldives. For Hassan, that is his proudest achievement: watching a new generation rise, just as he once did.
Across at Sun Siyam Iru Fushi, the same philosophy of growth and guidance echoes through the corridors. Ahmed Naseer began his journey there in 2011 as a villa attendant. Today, he serves as Assistant Executive Housekeeper, leading a team whose attention to detail defines a guest’s first impression of the resort.
“When guests say they feel comfortable and at home,” he says, “it reminds me why our work matters.”
His rise has been shaped by a culture of trust, one where learning is constant and promotions come with mentorship, not mere titles. He speaks with genuine pride about how Sun Siyam Resorts creates space for ambition, even in entrylevel roles.
“The company’s openness to change and creativity keeps me motivated,” he says. “We’ve grown together, and that shared progress is what makes this journey meaningful.”
In the front office nearby, Assistant Front Office Manager Ibrahim Naufal Fariq carries the same sentiment. He joined Iru Fushi in 2010 as a telephone operator, then called a MAGIC Attendant, when the resort was managed by Hilton. When Sun Siyam Resorts took over in 2013, Naufal stayed on, continuing his growth through several roles, from WISH Supervisor to Guest Service Manager, and now to Assistant Front Office Manager.
“I’ve had incredible superiors and mentors who believed in me,” he says. “Their trust helped me reach where I am today.”
For Naufal, the phrase Home of the Maldivian Spirit is more than a slogan. It is a reminder that hospitality begins with sincerity. Every greeting at reception, every effort to resolve a guest’s concern, is an extension of that warmth.
“We lead with positivity,” he says. “By mentoring our team, we ensure guests experience true Maldivian hospitality.”
At Sun Siyam Vilu Reef, Aminath Zeeba Saeed, known affectionately by her team as Anth, carries the same sense of warmth and constancy. Joining in 2010 as a Guest Relations Officer, she has grown through dedication and a deep belief in kindness. Now a Front Office Supervisor, her days are defined by the quiet joy of making guests feel at home.
“We greet every guest with heartfelt warmth,” she says. “Our care and attentiveness are what make the Maldivian spirit come alive.”
Her bond with her colleagues mirrors that of a family, strengthened through shared celebrations and team traditions. For Anth, the resort’s transformation over the years reflects not just progress, but shared pride, a place where growth and gratitude move together. Through Sun Siyam Care, she and her team have supported reef clean-ups, tree planting, and community outreach, embracing sustainability as part of everyday life.
In the kitchens nearby, Senior Sous Chef Ibrahim Saeed embodies another kind of legacy. Having spent 27 years with Sun Siyam, from Madu Gali and Bolifushi to his current post, he has watched the brand evolve from its earliest days. He recalls the camaraderie forged during challenges like the 2004 tsunami, when teamwork became survival.
“We greet every guest with heartfelt warmth,” she says. “Our care and attentiveness are what make the Maldivian spirit come alive.”
“This company is my home,” he says simply. “We’ve grown together.”
His philosophy is grounded in care, for his craft, his team, and the guests whose memories are shaped by the meals he helps create. Saeed sees his work as a way to share Maldivian warmth through flavour and experience, one plate at a time.
Across these stories, a common thread weaves through: patience, humility, and a sense of shared purpose. Each has built a career not only within a company but within a family, one that has grown from a single resort into a group of islands bound by the same values. When they speak about their work, their tone carries more gratitude than pride. Hassan calls it “a sense of belonging.” Abdulla says it is “faith and focus.” Naseer calls it “creativity rooted in culture.”
The beauty of Sun Siyam Resorts’ success lies not in its expansion, but in how it has kept its heart intact. The staff who began decades ago still see their roles as extensions of themselves, stewards of a culture that celebrates care, respect, and the environment that sustains it. Abdulla’s use of seagrass for soil fertilisation, Hassan’s plant-based initiatives in the kitchen, Naseer’s community outreach and mentoring, Naufal’s leadership in guest services, Anth’s sustainability efforts, and Saeed’s long-standing culinary mentorship all reflect that shared consciousness.
Together, they form a living portrait of a Maldivian company that has matured with its people. They have seen the resorts grow, the teams evolve, and new generations step forward, all without losing the humility that first drew them in.
As the morning brightens, Abdulla pauses to greet a passing guest who asks about a flowering tree. Hassan inspects the breakfast buffet before service. Naseer checks a villa one last time, ensuring everything feels as it should. Naufal smiles as a family checks out, their luggage ready for the journey home. Anth waves goodbye to a departing guest she had welcomed days earlier, while Saeed stands over a simmering pot, tasting the morning broth. Each moment, though small, holds the essence of something larger, a legacy built not only on hospitality but on heart.
For those who have spent their lives at Sun Siyam Resorts, the story is simple: the brand’s success is not written in marble or measured in milestones. It is found in the people who have kept its spirit alive for thirty-five years, the faces behind the smiles, the hands that welcome, the hearts that make guests feel at home in the islands they call their own.
Tourist ArrivalsMonthly Tourist Arrivals -
Share of Bed Capacity by Type
Tourism in the Maldives continued its steady upward trajectory, with total arrivals reaching 1,878,477 as of 8 November 2025, reflecting a 9.9 percent increase compared to the same period last year. The Ministry of Tourism’s latest data shows that the first eight days of November recorded 51,543 arrivals, up 14.4 percent from the corresponding period in 2024, signalling a strong start to the high season.
China remains the top source market with 298,626 visitors, accounting for 15.9 percent of total arrivals, followed by Russia with 236,470 and the United Kingdom with 166,506. Germany and Italy round out the top five, with 139,679 and 123,010 arrivals respectively. These figures underline the continued dominance of traditional markets even as emerging ones gradually expand their share.
In terms of accommodation, resorts continue to account for the largest portion of arrivals, representing 73.8 percent of total visitors, followed by guesthouses with 21.5 percent and hotels with 2.6 percent. Operational tourist facilities now number 1,300, offering over 66,000 beds across 19 atolls, with guesthouses spread across 111 inhabited islands.
With the government targeting 2.3 million tourist arrivals by the end of the year, the Maldives still needs to attract roughly 420,000 visitors in the remaining weeks. Given the current pace and the seasonal influx expected during the festive period, the goal remains within reach, though it will depend on maintaining consistent momentum through December.
Total Assets
Foreign Currency Finacial Assets
Local Currency Finacial Assets
Total Liabilities
Foreign Currency Financial Liabilities
Local Currency Financial Liabilities
The MMA’s financial position strengthened modestly in October 2025, maintaining its upward trajectory from September. Growth in foreign assets reflected steady external liquidity management and improved overseas bank positions. Domestic assets and liabilities remained stable, showing a balanced monetary stance. The increase in equity suggests continued reinforcement of the Authority’s capital structure, highlighting prudent fiscal and reserve management amid a cautiously improving economic environment.
Inflation is the percentage change in the general price level in the economy during a given period.
Inflation in the Maldives continued to ease through the second half of 2025, extending the downward trend that began in May. The rate stood at 3.9% in September, down from 4.1% in August and 4.0% in July and June, following a steady decline from 4.6% in May and the April peak of 5.9%. Earlier in the year, inflation hovered between 5.4% and 5.6% from January to March.
The continued moderation suggests stabilising price pressures, particularly as earlier spikes in food and utility costs have subsided. Although price levels remain higher than in late 2024, the latest data points to improved supply conditions and a more balanced domestic demand environment.
Value in Millions - USD
Imports fluctuated through 2025, hitting a low of USD 255.56 million in June before rebounding to USD 316.65 millionin August and easing slightly to USD 296.64 million in September. Exports followed a weaker trajectory, slipping from USD 55.71 million in January to USD 26.35 million by September. The data points to seasonal shifts and price-related movements rather than structural changes in trade activity.
Government revenue collection in October 2025 reached MVR 2.04 billion, marking a 16.7 percent increase compared to the same month last year, according to the latest figures from the Maldives Inland Revenue Authority (MIRA). The improvement was largely driven by stronger performance in the tourism sector, increased green tax rates, and higher airport-related fees.
Of the total revenue, USD-denominated collections amounted to USD 85.96 million. Goods and Services Tax (GST) remained the largest contributor, accounting for 60.4 percent of total revenue. Green Tax followed with 8.5 percent, while Income Tax, Airport Development Fee, and Departure Tax contributed 7.2 percent, 6.8 percent, and 6.7 percent respectively.
Tourism-related taxes continued to play a critical role in boosting state income. MIRA attributed the increase in revenue to higher collections of Tourism Goods and Services Tax (TGST), Green Tax, and airport taxes, supported by a 12.6 percent rise in tourist arrivals in September 2025 compared to the same period last year. The higher Green Tax rate implemented in January 2025 and the revised airport taxes and fees effective from December 2024 also contributed to the overall growth.
MIRA’s report also highlighted that October’s revenue exceeded projections by 1.2 percent, driven mainly by higher-than-expected collections from TGST, General Sector GST, and Work Permit Fees. Unprojected revenue sources such as land acquisition and conversion fees, corporate social responsibility fees, and lease period extension fees added further gains.
In addition, 21 percent of the month’s total revenue came from payments collected past their original deadlines, while 7.1 percent was secured through targeted initiatives to recover outstanding dues.
Overall, tax revenues made up 82.8 percent of October’s total collection, while non-tax revenues accounted for the remaining share. The continued strength of GST and tourism-related taxes underscores the sector’s importance to government finances, with fiscal performance for the month signalling sustained momentum as the high season progresses.
Inflation in the Maldives slowed in September 2025, as food and fish prices declined after months of steady gains. The Consumer Price Index (CPI) fell 0.09% during the month, reversing the 0.36% increase recorded in August, according to the Maldives Bureau of Statistics.
On an annual basis, inflation stood at 3.87%, down from 4.14% in August, reflecting further easing in price pressures across major spending categories.
Price Changes Were Notable in:
The Food and Beverages group, including fish, dropped 0.90% in September, led by sharp price declines in onions (-21.11%), reef fish (-7.00%), lime (-15.68%), carrots (-13.97%), and tuna (-2.46%).
These decreases were partly offset by higher prices for oranges (+22.96%), apples (+7.60%), and ginger (+11.54%).
The Fish subcategory alone fell 2.51%, as reef fish and tuna prices dropped noticeably.
Price Increases Were Notable in:
In contrast, the Housing, Water, Electricity, Gas, and Other Fuels group rose 0.54%, largely due to a 3.42% increase in electricity tariffs.
Other modest gains were observed in Personal Care and Miscellaneous Goods and Services (+0.19%), Health (+0.08%), and Information and Communication (+0.04%), while Transport fell 0.23%, mainly reflecting lower motorcycle prices despite higher international airfares.
Regionally, inflation diverged between Malé and the Atolls. Prices in Malé rose 0.19%, driven by higher electricity costs (+3.30%), while Atolls saw a 0.51% decline, mainly due to falling food prices — particularly reef fish (-11.34%), onions (-24.33%), and tuna (-3.41%).
Overall, September’s data suggests that inflationary pressures have softened, supported by easing food and utility costs. While some categories such as electricity and personal care remain on an upward trend, the moderation in overall prices signals improving stability after earlier fluctuations in 2025.
Annual Government Debt Figures (2015–2025)
SOURCES: Data is compiled from official Maldivian government sources – primarily the MINISTRY OF FINANCE (Debt Management Department reports and Fiscal Strategy documents) and the MALDIVES MONETARY AUTHORITY (MMA) statistical database
As Chief Commercial Officer at Atmosphere Core, Stéphane Laguette oversees marketing, sales, revenue, and brand building across one of the Maldives’ most dynamic hospitality groups. With an expanding international footprint from the Maldives to Italy, India, Sri Lanka, and beyond, he discusses how Atmosphere Core balances global growth with brand authenticity, the philosophy behind its portfolio, and what it takes to lead multicultural teams in a competitive hospitality landscape.
As CCO, you oversee marketing, sales, revenue, and brand building. How do you ensure alignment between these diverse functions to create a seamless brand culture across Atmosphere Core’s sub-brands?
Company alignment across all brands begins with our culture and training. We ensure that each brand’s individuality is respected and reinforced through consistent internal and external marketing. Once these three pillars, culture, training, and marketing, are firmly in place, our role is to continuously apply, share, and refine them. That ongoing evolution keeps our ecosystem cohesive yet distinct.
Atmosphere Core is the first Maldives-based hospitality brand to expand into Europe with a property in Italy, alongside new openings in India, Nepal and Sri Lanka. What do these milestones mean for the company’s growth story?
This expansion feels like a natural evolution for us. We have always aspired to take our expertise and concepts beyond the Maldives. It’s a major milestone, a chance to share our vision globally.Our strongest pipeline is in India, where we plan to open 16 new hotels between 2025 and 2027. One additional property in the Maldives will bring our total to 10 resorts, alongside one opening in Sri Lanka. For our entry into Europe, we chose BORGO MONCHIERO Heritage by Atmosphere Langhe Piedmont. Heritage by Atmosphere is a sub-brand that celebrates authentic experiences, history, and culture. The first European destination, a charming village in Piedmont Italy, resonated deeply with us. We were inspired by its character, architecture, and owners.
We don’t follow rigid expansion blueprints; instead, we look for destinations and partners that align with our guest philosophy and the spirit of our hospitality.
In launching multiple new brands in quick succession, how do you ensure each one maintains its distinct identity without cannibalising market share from the others?
When we launched our brands a few years ago, we designed clear differentiation for each, while keeping our company’s core philosophy, Joy of Giving, at the heart of everything. We have managed to keep authentic brand identities and position each brand through a defined ‘house architecture’ and branding concept. So far, we are not cannibalising market share between brands, in fact they complement each other.
Every brand in our portfolio was conceived with a unique personality and speaks to a different traveller mindset. THE OZEN COLLECTION embodies luxury through Refined Elegance; COLOURS OF OBLU is vibrant, lively, and expressive, ideal for resort destinations with an upbeat spirit. Atmosphere Hotels & Resorts gives us the flexibility to explore new opportunities and introduce experiences that bring something genuinely distinctive to the market.
In a market saturated with luxury and lifestyle brands, what’s one risk you’ve taken that was viewed as too bold or even reckless by others, but you believed it was necessary?
I don’t believe the market is saturated with luxury and lifestyle brands. We take calculated risks every month, it’s part of who we are and how we grow. What others may view as bold or unconventional doesn’t concern us much. In fact, the boldest move we ever made was simply to start.
With your experience managing multicultural teams across global markets, what have you found to be the most effective strategies for sustaining high performance and cohesion?
I believe it all comes down to attitude and genuine relationships, both internally and externally. Our emotionally intelligent approach to leadership, team building and positivity go a long way in resolving challenges, even when opinions differ. We also place great importance on professionalism, ensuring interactions are always respectful, balanced, and collaborative.
6. What advice would you give to aspiring leaders in the hospitality industry who aim to drive growth and build strong, recognisable brands in a competitive global market?
Create your vision with a sense of reality and apply the Joy of Planning wherever you can. When you fully commit to a path without a ‘Plan B’, that conviction becomes your strength.
In 1980, the World Bank’s first look at the Maldives read like a dispatch from the edge. It described a nation of 143,000 people, scattered across 202 inhabited islands, where life expectancy was 46.5 years and infant mortality was painfully high. There were no official national accounts. Per capita income was estimated at just USD 160. Government finances were rudimentary, the budget more an accounting ledger than a policy tool. The State Trading Organization set prices using an “accounting rate” that effectively taxed exporters and subsidised essential imports. A monetary authority was only on paper. Tourism had just begun to take root. Fishing was the mainstay of output and work, but even there producer incentives were blunted by pricing rules and fuel costs. The report’s verdict was unsentimental, yet optimistic that with clear priorities, basic infrastructure, and concessional support, a small state could move quickly
Four and a half decades on, the Maldives is unrecognisable in many ways. Life expectancy has climbed to about 81 years. GDP per capita is now in five figures, at roughly USD 12,500 in 2023. Tourism is the system’s growth engine and anchor, contributing the largest sectoral share of GDP, while fisheries has slipped to a very small share in nominal terms. A modern tax state exists where none did in 1980, with GST introduced in 2011 and broadened through tourism rates and later amendments. The Maldives Monetary Authority, created by statute in 1981, is the central node for financial stability. These are not just policy footnotes, they are the scaffolding of a different economy.
That first report worried about the state’s limited capacity, a budget dependent on trading profits, and weak incentives for producers. It flagged STO’s use of a non-market exchange rate that taxed fish exports by as much as half, with the proceeds used to cheapen essentials. It noted that tourism revenues and shipping remittances masked a merchandise trade gap, and that the data were too thin to manage policy well. The throughline from that diagnosis remains visible, even if the context has transformed. Today policy is built on a far better statistical base, and the government uses formal taxes rather than implicit levies for revenue. Yet the core challenge the Bank identified still haunts the public balance sheet, albeit in new clothes. The state continues to do a great deal, often through public enterprises, and the bill is heavy. Public debt ratios are among the highest in the region. Financing pressures and rollovers are now a macro headline, not a footnote.
On structure, the shift is dramatic. In 1978 the report estimated services at 54 percent of GDP, largely Malé-based government and a nascent visitor industry. Fishing was around 40 percent of value added and over half of employment. Today tourism is the single largest sector by GDP share, with spillovers to transport, retail, and construction. Fish preparation accounts for well under 1 percent of nominal GDP. This is a different kind of export specialisation, deeper and broader than the report could have imagined when airport arrivals were still counted in the low thousands.
On human development, the contrast is even starker. The World Bank’s country table documented high birth and death rates, limited access to safe water and sanitation in the atolls, and a health system concentrated in Malé. It read like a checklist for urgent investment. The subsequent gains in mortality, longevity, and service access are the fruits of three decades of infrastructure and basic services, aided by multilateral and bilateral programmes. The World Bank’s early call for safe water and decentralised services anticipated much of what followed.
What has not changed enough is vulnerability. The report pressed for clear priorities, a stronger planning centre, and realism about what the state could execute. That counsel remains current. Tourism’s dominance brings scale and speed, but also cyclicality, exposure to global shocks, and concentration in a few atolls. The country’s debt story reflects a development model that built fast, often through state entities, and paid later. The fiscal apparatus is broader than in 1980, yet expenditure pressures run ahead of stable revenue bases. Recent years have shown how quickly external headwinds can tighten financing. The current debate about new ventures and diversification echoes the 1980s aspiration to widen the base, this time with far larger numbers and more complex risks.
There is also a governance thread that links the eras. In 1980, the Bank noted the need for a legislative framework for banking and companies, and for interest rate policies that would mobilise savings. Those institutional steps happened, but institutions need continual care. The larger the state footprint, the more critical it is to ring-fence public enterprise decisions from political cycles, keep contingent liabilities transparent, and publish timely fiscal and debt data. The prize is credibility with citizens and creditors alike, which lowers the cost of capital and widens policy room.
So how far have we come. From a subsistence-leaning, fish-led archipelago to a tourism-powered service economy with modern tax law and a central bank, the journey is immense. From a life expectancy in the forties to the eighties is a civilisational leap. Yet the old advice to pick priorities, cost Maldives honestly, and avoid trying to do everything at once still holds. With the population now several times larger than in 1977 and the economy far more monetised, small policy errors scale quickly. The next phase will be decided by the quality of institutions, the transparency of fiscal choices, and whether diversification becomes more than a slogan. That is a different kind of nation-building, but the logic is the same one the Bank saw at the start.
The World Bank’s South Asia Development Update (October 2025) places the Maldives’ economic outlook in sharp relief against its regional peers, noting that while growth continues to be driven by tourism, fiscal and external deficits remain among the highest in South Asia.
The report projects Maldives’ GDP growth at 4.2 percent in 2025, up from 3.3 percent in 2024, before easing slightly to 3.9 percent in 2026. This places the country below the South Asian regional average of 6.6 percent and even below the 4.4 percent average for South Asia excluding India. The deceleration reflects fiscal pressures and balance-of-payments vulnerabilities despite the steady recovery in visitor arrivals.
According to the report, tourism continues to fuel growth in 2025, much as it did in 2024. However, the economy faces rising inflation and widening deficits. Inflation surged from around 1 percent in late 2024 to a peak of 5.9 percent in April 2025, driven by higher import costs and limited access to foreign currency. Although the Maldives maintains a fixed exchange rate, depreciation in the parallel market has added to price pressures.
The fiscal deficit reached 12.9 percent of GDP in 2024, far exceeding regional levels, with spending heavily concentrated on subsidies, capital projects, and interest payments. The current account deficit stood at 18.3 percent of GDP, among the largest in South Asia, reflecting the country’s dependence on imports and high external financing needs.
By comparison, Sri Lanka’s fiscal deficit was 4.6 percent of GDP, and Bangladesh’s stood near 4 percent, highlighting how the Maldives’ public spending remains substantially higher than its peers. While Bhutan and India are easing fiscal pressures through consolidation, the Maldives continues to rely on domestic banks to finance its deficits, a trend the World Bank warns could increase exposure to sovereign risk.
Despite these challenges, the Maldives’ tourism sector remains one of the most robust in the region, outperforming Sri Lanka and Nepal in post-pandemic recovery. The report suggests that this strength has so far cushioned the economy against deeper instability, even as fiscal and external imbalances persist.
The World Bank emphasises the need for fiscal discipline and stronger foreign exchange management to safeguard macroeconomic stability. Without structural adjustments, high debt levels and persistent deficits could undermine growth momentum in the medium term.
The government has amended the Public Finance Regulation to allow the awarding of all government contracts without a competitive bidding process, provided that approval is obtained from the cabinet or a cabinet committee.
The change, expands the scope of single-source procurement, which permits state institutions to bypass open tenders and select a single supplier even when multiple vendors exist. Under the new amendment, Article 10.20 (b-1) of the regulation now allows government bodies to implement projects related to basic public needs, improvement of living standards, and security services through single-source procurement with cabinet approval.
Previously, such procurement was limited to exceptional circumstances, such as emergencies where time constraints made competitive bidding impractical, or in cases where multiple bids were unlikely due to the contract’s low value.
The amendment broadens the government’s discretion in awarding contracts, enabling major projects to be contracted without open bidding, as long as cabinet authorisation is granted.
Removing competitive bidding from the process poses a risk to transparency and accountability, as it limits public oversight of how government funds are spent. Without open tenders, contracts may be awarded without ensuring value for money, potentially leading to inefficiency, conflicts of interest, and reduced public trust in procurement decisions.
The move follows growing criticism over the government’s recent practice of awarding large-scale contracts to state-owned enterprises instead of private contractors, raising questions about fair competition and responsible use of public funds.
GOVERNMENT & ECONOMY
Minister of Finance and Planning Moosa Zameer has revealed that the technical phase of the draft state budget for the upcoming fiscal year has been completed, with final preparations now underway ahead of its presentation to Parliament.
Speaking to state media in Guraidhoo, Thaa Atoll, Minister Zameer said the budget process is proceeding according to schedule. The initial draft was prepared following extensive consultations with ministries and government offices, culminating in technical completion by the Fiscal Affairs Department of the Ministry and the Policy Office of the President’s Office.
He explained that after submission to the President, the final phase will begin with the involvement of relevant agencies before the budget is filed with Parliament. By law, the state budget must be submitted two months before the end of the fiscal year to allow for debate and committee review before approval.
Although the government has not yet disclosed the projected total expenditure, Minister Zameer confirmed that the upcoming budget will prioritise the Maldives 2.0 initiative. The new budget will encompass recurrent expenditures, capital infrastructure spending, debt repayments, and revenue estimates, reflecting a shift from the current year’s fiscal approach.
For 2025, the government approved a budget of MVR 56.6 billion, which was heavily focused on debt repayments under austerity measures. Minister Zameer said the coming years will instead emphasise major infrastructure and housing development, while avoiding undue pressure on the public or the wider economy.
The Ministry of Finance and Planning’s latest Debt Bulletin shows public and publicly guaranteed (PPG) debt reaching MVR 148.9 billion at the end of the second quarter of 2025, equivalent to 124% of GDP.
Budgetary Central Government (BCG) debt accounted for the largest share, standing at MVR 127.8 billion, split between MVR 42.0 billion in external debt and MVR 85.8 billion in domestic debt. Domestic obligations remain dominant, making up 71% of GDP, while external debt represented 35%. Sovereign-guaranteed debt, extended to state-owned enterprises and private entities, stood at MVR 21.1 billion, or 17.6% of GDP.
Debt service costs continued to weigh heavily on public finances. In Q2 2025, total PPG debt service reached MVR 3.5 billion. Of this, MVR 1.9 billion went to principal repayments and MVR 1.6 billion to interest and other charges. Notably, domestic debt service costs surged, with interest payments rising to MVR 843 million.
External debt remained concentrated among a few creditors. The Export-Import Bank of India held the largest share, followed by bondholders, the Export-Import Bank of China, and the Saudi Fund for Development. In terms of currency composition, the majority of external debt was denominated in US dollars (64%), while other exposures included Saudi riyal, Kuwaiti dinar, Chinese yuan and euro.
The report highlighted refinancing risks, with large repayments looming in the medium term. Between 2025 and 2035, external and domestic obligations show a heavy concentration of maturities, exposing the government to rollover pressures.
On interest rate risk, the portfolio remains largely fixed-rate, with 96% of debt insulated from immediate rate shocks. However, the weighted average interest rate of PPG debt stood at 4.3%, reflecting a gradual rise compared with previous years.
Subsidiary loans to state-owned enterprises added another MVR 12.3 billion, led by the Maldives Airports Company Limited with MVR 9.8 billion. This continues to raise concerns over contingent liabilities, as repayments could fall back on the state if enterprises face difficulties.
Overall, the Q2 bulletin underscores the strain of high debt servicing costs and rising refinancing risks. While fixed-rate structures offer some protection, the sheer size of debt relative to GDP—124%—keeps fiscal vulnerability a pressing concern.
The Maldives economy recorded modest growth in the first quarter of 2025, while key sectors such as tourism and construction showed mixed signals through mid-year, according to the latest Economic Update released by the Maldives Monetary Authority (MMA).
Advance estimates by the Maldives Bureau of Statistics revealed that real GDP expanded by 2.5 percent in Q1 2025, compared to the same quarter of 2024. This was an improvement from the 1.9 percent growth seen in the final quarter of last year. The gains were driven mainly by public administration and construction, with tourism and retail also making positive contributions, though fisheries and transportation lagged.
Forecasts published earlier in May projected full-year growth at 4.5 percent under the baseline scenario, or 5.6 percent under an alternative scenario. Both are lower than the October 2024 projections. The downward revisions followed weaker-thanexpected performance in 2024, when the economy expanded by 3.3 percent, significantly below the previous estimate of 5.5 percent.
Tourism, the mainstay of the economy, continued to support growth. Arrivals in July 2025 reached 186,738, up 11 percent from a year earlier, with China, Russia, the UK, Germany, and India leading as key markets. Bednights rose by 9 percent during the month, with guesthouses seeing a notable 55 percent increase, offsetting the slower growth in resorts. However, average stays shortened to 6.9 days between January and July, compared with 7.6 days in 2024, highlighting a shift in visitor patterns.
Inflation held steady at 4 percent in July, with tobacco and food categories accounting for much of the upward pressure, while electricity costs had a deflationary effect.
Public finance data indicated stronger revenues, up 21 percent in June compared with a year earlier, supported by both tax and nontax income. Expenditure fell by 3 percent, mainly due to reduced recurrent spending. Meanwhile, government debt stood at MVR 125.3 billion at the end of Q1 2025, equivalent to 104 percent of GDP, down from 114 percent in late 2024.
On the monetary front, reserve money declined by 2 percent in July, reflecting lower net foreign assets despite growth in domestic assets. Broad money grew by 13 percent, driven by deposits and higher bank lending. Credit to the private sector remained stable at 6 percent annual growth, with personal loans expanding by 23 percent, while lending to the tourism sector saw a marginal decline.
External trade registered contrasting trends. Exports surged 27 percent in July, buoyed by higher earnings from frozen skipjack tuna, while imports rose only slightly. From January to July, exports were up 14 percent while imports contracted by 1 percent. Gross international reserves, though lower than in June at USD 774.5 million, were nearly double the level recorded in July 2024.
Overall, the data show a gradual but uneven economic recovery, with tourism arrivals growing strongly yet weighed down by shorter stays, and public finances improving despite the heavy debt load. The MMA’s projections suggest that growth in 2025 will remain steady but subdued compared to earlier expectations, underscoring the importance of careful fiscal management and diversification efforts.
President Dr Mohamed Muizzu has ratified the Trademark Bill, marking the establishment of a comprehensive legal framework for trademark registration and protection in the Maldives.
The bill, which was unanimously passed by the People’s Majlis during its sitting on 10 November, introduces clear mechanisms to safeguard the rights of local and foreign trademark owners, prevent counterfeiting, and strengthen intellectual property enforcement.
Under the new law, trademarks are defined as any sign capable of distinguishing one party’s goods or services from another’s, including names, letters, numbers, colours, and figurative elements, or combinations of these. It outlines both civil and criminal measures against infringement, with penalties for counterfeiting offences ranging from MVR 100,000 to MVR 2 million. Courts are also empowered to issue interim orders to prevent infringement or secure evidence, while customs authorities may seize suspected counterfeit imports.
The Act further requires trademark owners to re-register their marks within 12 months from the date it comes into force, ensuring consistency under the new system. All relevant authorities must publish the accompanying regulations and guidelines within six months of enforcement.
Economic Minister Mohamed Saeed described the ratification as a historic step for the country, noting that it will enhance investor confidence and create a more secure environment for businesses, manufacturers, and creative industries.
The Trademark Act has now been published in the Government Gazette and will come into effect 12 months from its date
Consultations on the Maldives’ National Development Masterplan, which will guide the country’s development for the next two decades, have begun with visits to inhabited islands.
The Ministry of Finance and Planning confirmed to media that the team working on the ‘Viluntheri Raajje 2045’ (Resilient Maldives 2045) plan started its travels with a visit to K. Guraidhoo, where they met with the island council and the public. The discussions focused on social and economic development priorities, long-term visions, and local perspectives on the nation’s future.
According to the ministry, the consultation process will cover all inhabited islands in the coming days. Island and atoll councils, government agencies, businesses and community organisations will be able to meet the team and contribute to shaping the masterplan.
The National Development Masterplan is designed to set out a long-term strategy for national initiatives, ensuring sustainable use of resources for the public good. The plan also aims to build resilience against climate change while adapting to global economic and technological shifts.
Developing a 20-year masterplan is one of President Dr Mohamed Muizzu’s pledges, with the government targeting completion by November next year. It has also set an ambitious goal of achieving developed nation status by 2040.
For decades, the Maldives has sold more than turquoise lagoons and powderwhite beaches. It has sold a promise of serenity, exclusivity, and escape. Every glossy image, every video of an overwater villa at sunset, has fed into that dream. Yet as the tourism industry grows and diversifies, the line between inspiration and exaggeration has blurred. Now, the Ministry of Tourism and Environment is drawing that line more clearly than ever before.
The newly gazetted Regulation on the Advertising of Establishments that Provide Services to Tourists, in effect since early August, marks a significant shift in how the Maldives presents itself to the world. For the first time, every resort, guesthouse, hotel, and excursion operator will need to rethink how they tell their story, from the language they use to the images they share.
At its heart, the regulation calls for honesty. A property must be licensed before it can be promoted, and if it is still under development, it will need express permission from the Ministry. Businesses can only advertise within their licensed category. A guesthouse cannot claim to be a resort, and a dive centre cannot market itself as a full-fledged luxury destination. For smaller operators, especially those catering to independent travellers, this may bring much-needed clarity and protect authenticity in a market where presentation often outpaces reality.
The regulation also takes direct aim at modern marketing. It requires transparency in every form of digital communication. Paid content must be disclosed, AI-generated visuals identified, and fake reviews or misleading ratings are prohibited. The rules acknowledge a new reality where perception can be shaped in seconds and where a single viral post can influence how the world sees a destination.
For the Maldives, where tourism drives much of the economy, protecting the integrity of its image is essential. Travellers expect what they see to match what they experience. A photo that hides construction or a video filmed in another location may seem harmless, but together, such practices can damage trust. The new rules seek to prevent that erosion.
There is also a broader cultural shift embedded in this regulation, one that echoes global trends toward ethical marketing and responsible tourism. By requiring businesses to identify environmentally sensitive areas and verify advertised wellness services, the Ministry is asking operators to be transparent about what they offer. Authenticity has become not only a virtue but a competitive advantage.
For marketing teams, this transition will require adjustment. The Maldives has long been marketed through perfection. Now, it will need to balance beauty with truth. That could mean fewer airbrushed photos and more storytelling grounded in reality. It could also encourage brands to highlight substance, sustainability, local culture, and genuine experiences instead of relying solely on picture-perfect visuals.
Compliance will be key. The Ministry can order misleading ads to be taken down within 24 hours, with repeat offences carrying fines of up to MVR 100,000. The goal is not to stifle creativity, but to build accountability. Over time, this may strengthen the Maldives’ reputation as a destination where promise meets reality.
For travellers, the Maldives they see online will increasingly resemble the one they encounter in person, still breathtaking, but more transparent. For the industry, this is a reminder that in an age of algorithms and digital persuasion, credibility is the new luxury.
The Maldives has always been defined by the stories it tells. With these new rules, those stories are entering a new chapter, one where honesty becomes part of the brand itself.
Hanimaadhoo International Airport (HIA) was officially inaugurated, marking an important step in improving infrastructure and air connectivity in the northern Maldives.
The redeveloped airport, located in Haa Dhaalu Atoll, now features a 2,465-metre runway capable of accommodating narrow-body international aircraft, a new passenger terminal spanning over 10,000 square metres, and upgraded facilities to support both passenger and cargo operations.
The inauguration ceremony was attended by President Dr Mohamed Muizzu and First Lady Sajidha Mohamed, who arrived aboard a Maldivian Airbus A320, the largest aircraft to have landed at Hanimaadhoo. Indian Minister of Civil Aviation Ram Mohan Naidu also attended the event as the Special Envoy of Prime Minister Narendra Modi, representing the Government of India.
The airport redevelopment project was financed through a USD 136.6 million line of credit from India’s EXIM Bank, part of a broader USD 800 million agreement signed in 2019. It was contracted to India’s JMC Projects Ltd, with construction beginning in early 2023.
Originally opened nearly four decades ago, Hanimaadhoo Airport previously handled only small domestic aircraft. With the latest expansion, it is now equipped with a modern terminal designed to handle up to 1.3 million passengers annually, a fuel farm, a cargo terminal, and an aerobridge, the first of its kind at any airport outside the capital region. The facility also includes an art gallery showcasing Maldivian artists and new ATM and dollar counter services operated by Bank of Maldives.
Speaking at the ceremony, President Muizzu said the airport would help address connectivity challenges faced by the northern atolls. He noted that improved access would encourage investment and tourism in the region, which has long faced higher travel costs and limited transport links compared to the central Maldives.
He also called on both local and foreign investors to explore opportunities in the north, highlighting the potential for economic growth around Hanimaadhoo and neighbouring islands such as Kulhudhuffushi and Ihavandhoo.
The government expects the upgraded airport to support regional commerce by reducing import costs and facilitating direct international access for tourists. President Muizzu added that the project demonstrated the administration’s commitment to completing delayed infrastructure works, noting that much of the construction was accelerated within the past year.
The ceremony included a fireworks display and a tour of the new terminal, operated by Maldives Airports Company Limited (MACL). Senior government officials, foreign dignitaries, and community representatives were also in attendance.
Hanimaadhoo International Airport now stands as one of the Maldives’ largest regional airports and a central component of the government’s decentralisation agenda. By expanding direct air connectivity to the north, the project is expected to play a key role in supporting tourism, trade, and employment across the region.
The Maldives has long attracted international researchers. Our reefs are among the most biodiverse on the planet, our tuna fishery is one of the largest poleand-line operations globally, and our vulnerability to sea level rise makes us a natural case study for climate science. Yet despite this steady stream of visiting scientists, too much of the work conducted here ends up abroad, in foreign labs, in international journals, and in policy discussions far removed from our shores. This practice, known as parachute science, leaves Maldivian scientists and institutions marginalised in studies that directly affect our economy and future.
At its heart, parachute science is about extraction. Data is collected locally but interpreted elsewhere. Findings are written without Maldivian voices. And while international researchers often advance their careers, the country that provided the field site may see little of the benefit. For the Maldives, where science feeds directly into livelihoods and national survival, this imbalance is not just academic. It is economic.
Tourism, fisheries and infrastructure all depend on sound science. Reef surveys can tell a resort how to protect its house reef and keep divers coming back. Tuna stock assessments are the foundation of the Maldives’ Marine Stewardship Council eco-label, which underpins market access to Europe and beyond. Coastal modelling informs million-dollar projects such as land reclamation and sea walls. When this science is conducted in silos, without proper data sharing, government and businesses are left guessing.
There are encouraging counterexamples. The monitoring of manta rays and whale sharks at Hanifaru Bay directly shaped the decision to declare the site a marine protected area, balancing conservation with tourism revenue. The South Ari Marine Protected Area’s management plan, too, was informed by years of research involving both international scientists and Maldivian stakeholders. In fisheries, stock data collected locally and fed into the Indian Ocean Tuna Commission has been central to maintaining the Maldives’ reputation for sustainable tuna. The Coral Institute has also stood out as a positive example, building strong international partnerships while ensuring Maldivians are involved in research and training. These successes show what happens when research is not just done in the Maldives but also done with the Maldives.
New facilities are beginning to strengthen the country’s own research capacity. The inauguration of the Maldives’ largest marine research centre at Jawakara Islands Maldives is a signal of how private sector partnerships can support national science. With modern laboratories and a mandate to study coral resilience and marine biodiversity, centres like this give Maldivian scientists the infrastructure to lead studies rather than just host them. As Sebastian Steibl noted during a tour of the centre, procedures are being put in place to ensure research is collaborative and the results are shared locally. If these facilities are fully connected to government policy frameworks, they can help close the gap between international projects and local priorities.
The government has also begun to tighten the rules. Research permits now require reports and data to be submitted to ministries. Exporting samples is restricted, and international conventions on genetic resources are enforced. These measures are important, but they are only as strong as their enforcement. Too often, datasets remain on laptops overseas, and findings are shared years later, if at all. The Maldives needs to go further by insisting that all research conducted here feeds back into national databases and is available to policy makers in real time. Shared science could then drive stronger marine protection and more ambitious sustainability measures. Resorts, for example, could use such data to adopt OECMs (Other Effective Area-Based Conservation Measures), reinforcing their brand value while contributing to national conservation goals.
This is not about shutting doors to international collaboration. On the contrary, the Maldives should remain a hub for global science. But it must become a hub on its own terms. That means requiring co-authorship with Maldivian scientists on projects carried out here. It means training local students alongside visiting researchers. And it means mandating that raw data and metadata are deposited with Maldivian institutions, not just foreign repositories.
Businesses also have a stake. Resorts that host marine research projects should insist on data-sharing agreements that inform their sustainability strategies. Fishing companies need accurate science to maintain eco-certifications and reassure buyers. Infrastructure investors need clarity on erosion and sea level projections before committing capital. By demanding transparency and collaboration, the private sector can help shift the balance away from extraction toward partnership.
International journals are already moving in this direction. PLOS, eLife and others have introduced policies requiring authors to explain how local partners were involved. These are soft incentives, but they give governments leverage. If Maldivian authorities align research permits with these standards, the country can ensure that what is published about our reefs, fisheries and climate also reflects Maldivian perspectives.
The Maldives cannot stop being studied, nor should it. But it can insist that research conducted here strengthens its own capacity, informs its own policy, and benefits its own economy. In a nation where the future depends so heavily on evidence-based decisions, science cannot be allowed to parachute in and out. It must land, stay, and take root.
When a siren sounds along a coastline or a text alert flashes across a mobile phone, it means more than an approaching storm. It signals a system at work, a community prepared. For the Maldives, where the ocean is both a source of life and a constant reminder of vulnerability, this readiness is becoming a way of life rather than a response.
In recent years, the Maldives has made notable strides in shifting from reactive recovery to proactive resilience. The country’s endorsement of the “Early Warnings for All” roadmap, the first of its kind in Asia and the Pacific, represents a turning point in national disaster management. This framework, developed in partnership with multiple UN agencies, ensures that every island and every atoll can receive timely, accessible, and actionable alerts. The aim is simple but profound: to make sure no one is left behind when nature turns unpredictable.
Behind this milestone lies a coordinated national effort led by the UN Resident Coordinator’s Office, which brought together expertise from agencies such as UNDP, UNDRR, UNEP, WMO, UNESCAP, and the Group on Earth Observations. By aligning technical support and national priorities, the initiative is strengthening how the Maldives anticipates, communicates, and responds to risk.
At the community level, this transformation is tangible. The nationwide “Hurushiya” campaign, led by the National Disaster Management Authority and the Maldivian Red Crescent with UN support, has brought disaster preparedness into the daily lives of Maldivians. Through local engagement and public outreach, the campaign ensures that alerts are not just heard but understood. Over 250 representatives from every atoll participated in shaping it, reflecting a nationwide commitment to inclusivity and local ownership.
This inclusiveness extends to the design of the warning systems themselves. A UN-supported checklist now ensures that alerts reach everyone, including persons with disabilities, migrants, and women. By addressing communication barriers, the Maldives has made early warning systems more equitable and effective.
Technology and data are also at the heart of this progress. The newly launched “Risk and Resilience Portal” allows island councils to file disaster loss reports in real time, reducing response times from days to hours. It provides decision-makers with access to climate projections and land use data, supporting smarter local planning. Fishermen can now plan safer trips, families can move early to safer ground, and councils can act swiftly without waiting for bureaucratic clearance.
These efforts underscore how resilience is not a one-off achievement but an ongoing process that depends on cooperation across government, communities, and partners. Sustaining this momentum requires commitment, coordination, and continued investment in people and systems. With the goal of achieving full early warning coverage by 2027, the Maldives is setting a model for small island nations across the world, showing that scale does not limit ambition when the objective is to protect lives.
Beyond the Maldives, countries like Mozambique are also turning early warnings into early action. There, national systems have evolved to anticipate hazards before they escalate into humanitarian crises. Similar to the Maldivian experience, Mozambique’s success reflects the power of data-driven systems, local leadership, and international cooperation in safeguarding communities from increasingly severe climate impacts.
Together, these examples show that resilience is not about waiting for disaster to strike, it is about living ready. For the Maldives, every alert, every plan, and every coordinated response represents progress towards a future where preparedness is second nature. On this Disaster Risk Reduction Day, the message is clear: while storms may be inevitable, their devastation is not. Through foresight, inclusion, and unity, the Maldives is proving that resilience can be built long before the first wave rises.
The Maldives has long been a destination that depends on the sun. Its light defines the islands, powers the reefs, and sustains daily life. But could that same sunlight one day power the country itself, and even become a product the nation exports?
As the world races toward renewable energy, the idea of manufacturing solar panels in the Maldives sounds almost audacious. The image of a solar assembly line set against turquoise waters feels like a contradiction. Yet it may also be the country’s next logical frontier. The future of global energy is being rewritten, and there is no reason why the Maldives cannot claim a chapter of its own.
Industrial activity is not what the Maldives is known for. But as governments, including our own, pursue ambitious renewable energy targets, the question of domestic manufacturing is becoming more relevant. Across Asia, nations are investing heavily in solar production. India has launched large-scale incentive programmes for local solar manufacturers. Thailand and Vietnam have become regional production hubs. Even smaller island nations like Mauritius are exploring energy technology as a new economic pillar.
In the Maldives, where land is scarce and logistics are complex, the idea of a solar manufacturing facility forces a different way of thinking. It is not about sprawling industrial estates or smokestacks. It is about clean, compact, climate-resilient facilities that meet local needs and strengthen the economy.
The geography of the Maldives is not naturally industrial. Still, there are places where engineering meets opportunity. Thilafushi, once known for waste management, is transforming into an industrial hub with access to the capital and the main port. Hulhumalé, a reclaimed island built with climate resilience in mind, offers elevated land, modern infrastructure, and a skilled workforce. Both locations represent a shift in mindset from preservation alone to innovation within limits.
In any industrial venture in the Maldives, the sea is both partner and threat. A solar factory here would have to rise above conventional design. Elevated foundations, flood-proofing, and corrosionresistant materials would not be optional but essential. Factories in other coastal regions are already adapting this way, integrating renewable energy systems and efficient cooling designs. A facility that runs partly on its own solar output would make sense not only technically but symbolically. It would show that climate vulnerability can inspire innovation rather than constrain it.
But even if the geography and infrastructure align, two crucial questions remain: human capital and raw materials. Manufacturing is not only about machinery and land; it is about people and supply chains.
The Maldives has a young and educated population, but not yet a large industrial workforce. The skills required for precision manufacturing, electrical assembly, materials testing, and quality control are still concentrated abroad. Developing a domestic solar manufacturing industry would therefore require long-term investment in training and technical education. Partnerships with international firms, technical institutes, and regional universities could help build that capacity, while short-term operations might rely on a blend of local and expatriate expertise.
The sourcing of raw materials poses another challenge. The Maldives does not produce the silicon, glass, or aluminium needed for solar module assembly. These materials would have to be imported, much like other industrial inputs. Yet this is not a dealbreaker. Many successful manufacturing nations import most of their components but add value through design, efficiency, and final assembly. With the right logistics and policy incentives, the Maldives could position itself as a specialised assembler, producing solar panels designed for coastal and island environments, built to withstand humidity, corrosion, and salt exposure.
The economic logic remains strong. The Maldives imports almost everything it consumes, including solar panels. Building even a modest assembly or finishing plant could reduce reliance on imports, retain value within the economy, and create skilled employment in engineering, maintenance, and logistics. As the country works to diversify its economy beyond tourism, renewable manufacturing could become one of its most forward-looking ventures.
The regional context adds weight to this idea. The demand for solar modules in South Asia is rising quickly, and the Maldives is well placed along major shipping routes. A facility here could serve both domestic and regional markets, offering products that align with the country’s reputation for sustainability.
Examples from elsewhere show what is possible. Singapore has integrated solar panels into floating farms and building facades, proving that space constraints need not hinder energy ambition. California is experimenting with renewablepowered factories. Such models demonstrate that manufacturing can coexist with environmental goals if guided by careful planning and regulation. For the Maldives, that would mean combining economic ambition with environmental responsibility, creating an industry that reflects the same principles it promotes.
The conversation about manufacturing in the Maldives often ends before it begins, limited by assumptions about cost, scale, or capacity. But the global energy transition offers a rare opening. The same islands once considered too small or too remote for industry are now perfect testbeds for sustainable innovation.
Solar energy is more than a resource; it is an opportunity to redefine what is possible. The question is no longer whether the Maldives can host manufacturing, but whether it can afford not to. As the world shifts toward clean energy, those who build it will shape the future economy. It may be time to see the Maldives not only as a place powered by the sun, but as a place that builds with it
The Maldives has taken visible steps on the environment. Single-use plastics were phased out in stages, beginning with import bans in 2021 and further restrictions on sales in 2022. These actions helped signal intent and set clear rules for retailers and importers. Yet they did not resolve the harder questions of what happens to the plastics already in circulation or how to change incentives for producers and large buyers.
Waste policy now sits at a crossroads. Government documents set out a path toward Extended Producer Responsibility for packaging, which would shift end-of-life costs to producers and importers. Drafting is ongoing under the Waste Management Act and policy papers frame EPR as essential for plastics. The direction is promising, but until regulations are finalised, targets set, fees collected, and return systems funded, outcomes will remain uneven across islands.
Tourism taxation has also moved. The Green Tax was doubled from January 2025 to 12 dollars per night for most resorts and larger establishments, with six dollars for small guesthouses on inhabited islands. The change is intended to raise green finance and flows into the Maldives Green Fund, according to the Ministry of Finance. The question is less about the rate and more about governance: ring-fencing, transparent project pipelines, and audited reporting by island and sector would convert a nightly levy into measurable environmental results.
Energy is the backbone of climate credibility. Policy now targets 33 percent renewable electricity by 2028, which aligns with the country’s net-zero-by-2030 aspiration that is contingent on international support. Delivery requires far more than pilots. Utility planning must incorporate firm capacity, storage procurement, and tariff structures that attract private capital while easing budget pressure from diesel subsidies. A clear annual build schedule for solar, storage, and grid upgrades across atolls would turn a roadmap into bankable projects.
Waste-to-energy is advancing but timelines have shifted. The Thilafushi facility for the Greater Malé region and a smaller Addu plant are presented as solutions to landfill overuse and open burning. Some official statements suggest early operation, while recent updates point to commissioning in 2026. Reconciling these claims with transparent construction milestones, grid interconnection plans, and guaranteed feedstock contracts is vital to avoid cost overruns and under-performance.
What remains largely untouched are the incentives that shape behaviour across the economy. Maldives could focus on targeted and practical measures. For instance, setting fuel efficiency standards for inter-island vessels, performance-based procurement for energy-efficient public assets, and targeted rebates for renewable systems would be more effective in shifting behaviour while supporting economic resilience.
Public procurement is another underused lever. Current guidance focuses on process and compliance, with no national sustainable procurement standard or catalogue of green criteria. Introducing life-cycle requirements for high-spend items, from public buildings to cooling systems and ferries, could shift markets faster than standalone environmental programmes. International guidance exists, but domestic rules need to be codified, enforced, and monitored to matter.
Subsidy reform would amplify every other measure. Diesel-based power and targeted support for households and businesses shape demand for energy and equipment choices. Global and Commonwealth analyses show that reform, if sequenced with targeted protections and clear communication, reduces wasteful consumption and unlocks clean investment. The Maldives’ own fiscal discussions point to gradual targeting, which should be paired with time-bound incentives for distributed solar and efficient cooling so households and SMEs have a practical alternative.
In short, the Maldives has made visible progress on plastic bans and tourist levies, and it has a renewable roadmap. To move from signals to structural change, three actions will matter most. First, complete and enforce EPR with clear targets, eco-modulated fees, and a deposit-refund system for priority packaging. Second, publish a rolling five-year renewable and storage build schedule with procurement windows, grid plans, and subsidy alignment. Third, put sustainability into the state’s own purchasing by adopting binding green procurement criteria across energy, construction, transport, and cooling. These are the policies that would turn ambition into measurable outcomes at the island level.
The latest Labour Force Survey by the Maldives Bureau of Statistics (MBS) for the April to June 2025 quarter paints a mixed picture of Male’ City’s labour market. While overall employment continued to grow modestly, unemployment rose sharply over the quarter, signalling underlying structural challenges in the capital’s labour dynamics.
The working-age population in Male’ reached an estimated 188,700, of which Maldivians made up around 68 per cent (128,547) and foreigners 32 per cent (60,153). Employment stood at 142,717, representing about three-quarters of the working-age population.
Despite this high employment share, the number of unemployed persons more than doubled from the previous quarter to 4,442, a 104 per cent increase. Nearly all unemployed individuals were Maldivians, with unemployment rates higher among women (5.3 per cent) than men (4.6 per cent).
At the same time, labour force participation rose by two percentage points to 78 per cent, suggesting more people were entering the job market. The increase was most significant among Maldivian women and foreign women, who saw participation gains of 2.1 and 11.9 percentage points respectively.
The simultaneous rise in labour participation and unemployment reflects more people entering the job market than the number of new jobs created during the quarter. While this pushed the participation rate higher, it also temporarily raised unemployment as not everyone who joined the workforce immediately found employment.
Employment gains were largely driven by the secondary sector, which grew by 26 per cent over the quarter, while the serviceoriented tertiary sector, which accounts for 76.6 per cent of total employment in Male’, saw a slight decline.
The survey also highlighted persistent gender disparities in employment. Women remain significantly underrepresented in the labour force, with only 58.3 per cent participation compared to 89.9 per cent for men. Moreover, 72 per cent of women outside the labour force cited household or family responsibilities as their main activity, reflecting ongoing barriers to female workforce participation.
Labour underutilisation, which includes those unemployed, underemployed, or part of the potential labour force, stood at 7.5 per cent. However, this figure rises to 13.9 per cent among women, compared to 4.8 per cent for men.
The report noted a decline in the number of individuals outside the labour force by 7.6 per cent, mainly due to more Maldivians entering employment or job-seeking. Yet, a large segment, over 36,000 people, remains inactive due to education, illness, or family commitments.
Overall, while Male’s labour market appears to be expanding, the Q2 data suggests rising unemployment pressures, gender gaps, and an increasing dependence on foreign labour. These findings highlight the need for policies focused on job creation for Maldivians, particularly women and youth, and for ensuring equitable access to emerging opportunities in the capital’s evolving economy.
The World Economic Forum’s inaugural Chief People Officers Outlook highlights that human resource leaders are increasingly shaping business resilience and transformation, even as shortterm labour market caution weighs on hiring and restructuring decisions.
Based on consultations and surveys with over 130 chief people officers between May and June 2025, the report points to a workforce landscape defined by uncertainty. While 42 percent of respondents expect labour markets to remain unchanged in the next 12 months, nearly one-third anticipate weaker conditions. This cautious sentiment reflects macroeconomic volatility, geopolitical tensions and the disruptive pace of artificial intelligence (AI).
At the same time, chief people officers stress the importance of long-term workforce transformation. Organisations are increasingly looking to redesign job structures, rethink company culture and accelerate AI deployment. These priorities reflect both strategic opportunities and pressing risks. AI is seen as a driver of efficiency and upskilling, but concerns about employee adaptation, skill erosion and ethical data use are widespread.
Talent availability also varies across regions. While the United States, China, and Europe remain relatively strong talent hubs, chief people officers note that global resilience depends on adopting more agile workforce models, including remote, hybrid and cross-border operations. Alongside these structural shifts, evolving worker expectations, particularly around flexibility, purpose and mental health, are reshaping employer and employee relationships.
For the year ahead, three people strategy priorities stand out: reviewing organisational structures and job design, fostering workplace culture and purpose, and managing AI deployment. Executives emphasise that these shifts will require strong business acumen, digital fluency and stakeholder influence within the people function. As one respondent put it, “you can’t separate people and business anymore.”
For Maldivian workplaces, these findings carry clear implications. With tourism, banking and public administration forming the backbone of the economy, HR leaders will increasingly need to look beyond traditional models of hiring and staff management. The rise of AI in global business processes points to a future where even local firms will be expected to integrate automation, from streamlining administrative tasks to enhancing customer service.
At the same time, Maldivian workers, especially younger generations, are likely to mirror global trends in demanding flexibility, purpose-driven work and stronger wellbeing policies. Employers that fail to adapt risk losing skilled talent to international firms offering hybrid or remote roles. The emphasis on job redesign and culture is particularly relevant for the Maldives, where small organisational structures mean leadership models and work environments play an outsized role in retention and productivity.
The report concludes that while disruption is complex, it is also an opportunity. By balancing technology integration with humancentred approaches, organisations can build resilience and shape more inclusive, adaptive and agile workplaces. Chief people officers, once primarily associated with HR administration, are now seen as central to navigating this transformation
The story of Maldivian youth is often told as one of ambition. They talk about careers in tech, in medicine, in creative industries. They dream big. Yet alongside those aspirations sits something harder to measure: doubt. Many feel that their family background, the island they come from, or the connections they lack limit their chances of pursuing the roles they want.
Here, where opportunity is shaped as much by geography as by talent, selfdoubt is not just personal, it is systemic. A young person growing up on a remote island knows the weight of distance, how limited transport and schooling can shrink horizons. Even in Malé, where opportunities cluster, connections often matter as much as skills. The question is not simply “Am I good enough?” but “Do I know the right people?”
Too often, ambition collides with structural barriers. The absence of diverse industries, the over-reliance on tourism, the scarcity of scholarships, and the patchwork of training programmes mean that the leap from aspiration to achievement is longer than it should be.
And when opportunities do appear, they tend to flow toward those already advantaged. If your family can afford to send you to Malé or abroad for higher education, you are positioned differently from the student who finishes secondary school in an atoll island and sees no clear path forward. This is where confidence gaps widen into fault lines.
The challenge is not only geography or money. Politics, too, creeps into hiring. As one young professional put it, “I have a family member who is in politics, and since I am categorised as a politically exposed person, there is a lot of animosity around hiring people like me. They either feel that my relationship might influence my work or that they might face difficulties from the opposing side. So it’s quite the conundrum.” The barriers, in other words, are not just about merit but about perception.
Even those with international degrees and strong credentials can struggle. One graduate, who returned to Malé with high-level qualifications from one of the most prestigious universities in the world, still found the doors of opportunity closed. The problem was not ability, but a system that too often rewards familiarity and connections over capability.
The way forward begins with transparency. Corruption and nepotism lie at the root of many of these barriers, quietly shaping who gets access to opportunities and who is left waiting. Without open and fair processes, even the best-intentioned scholarship or training scheme risks reinforcing the same inequalities it was meant to reduce. Transparent recruitment, public reporting on scholarship awards, and clear criteria for promotions and placements are not bureaucratic details; they are safeguards against a culture where connections matter more than competence.
Alongside transparency, other tools matter. Apprenticeship programmes that reach beyond Malé could open pathways for students in atoll islands. Scholarships tied to emerging industries like renewable energy, fintech, or creative sectors would help diversify opportunities beyond tourism. Businesses that commit to merit-based hiring can set new standards for fairness. Mentorship networks can show young people that their future is not limited to who they know but what they can do.
Technology, too, can reduce the disadvantage of distance. Remote learning, online networking platforms, and digital work opportunities have the potential to widen horizons. But for these to matter, the systems distributing them must be trusted, and that trust rests on transparency.
The danger is assuming that self-doubt is an individual failing. It is not. It reflects deeper structural inequities. To dismiss it is to ignore the invisible barriers that keep bright, talented young people from believing their futures are possible. To take it seriously is to acknowledge that our workforce is shaped not only by supply and demand, but also by trust, in oneself, and in a system that is meant to provide fair chances.
If we want Maldivian youth to believe in their dreams, then the work begins not in them, but in us. It begins with transparency, fairness, and the will to ensure that opportunity flows on merit rather than influence.
President Dr Mohamed Muizzu has ratified the First Amendment to the National Payment System Act (Act No. 8/2021), granting the Maldives Monetary Authority (MMA) greater statutory authority to oversee and strengthen the country’s financial infrastructure.
The amendment, passed by the People’s Majlis on 18 August 2025, enables the MMA to develop and enhance the national payment system, introduce modern technologies, and facilitate innovative payment services. It also allows the central bank to establish an independent company or enter into partnerships and joint ventures to carry out these functions.
Under the revised law, no individual or entity may operate a payment system specified in the Act without a licence or authorisation from the MMA. The amendment further prohibits the solicitation or attempted solicitation of such services without approval. To enforce compliance, the MMA is empowered to impose fines ranging from MVR 100,000 to MVR 10,000,000.
The amendment was published in the Government Gazette following ratification and has now come into effect.
If you were to judge the Maldives’ financial future by its instant payment system, Favara, you might think the country is on the verge of a cashless leap. In a relatively short period, it has processed millions of real-time transfers worth billions of Rufiyaa. Cheques are declining, card payments are soaring, and a second phase of Favara, with a national mobile app, is now undergoing testing. It is a rare example of a developing economy building modern payment rails faster than its own behavioural change can catch up.
Cash use remains resilient. Currency in circulation rose again in 2024, while ATM withdrawals, though fewer, still totalled nearly MVR 35 billion. Free withdrawals and the convenience of physical cash are hard to displace, especially in outer atolls where merchants and households rely on tangible money.
Favara, however, has changed the texture of everyday transactions. The Maldives Monetary Authority’s latest Payment Bulletin shows over 7.7 million instant payments worth billions of Rufiyaa processed by end-2024, with interbank retail transfers climbing sharply. Cheques, by contrast, continue their quiet retreat, down notably in both volume and value. Yet they persist in corporate life, not out of nostalgia, but because they act as a guarantee of payment, something Favara’s real-time transfers, so far, do not replace.
Mobile wallets tell another story. Around 90,000 e-money accounts exist, but less than a third are active. Most usage still revolves around topping up mobile credit or paying bills. In theory, Favara should breathe new life into these wallets, allowing seamless bank-to-wallet transfers. In practice, many remain dormant, waiting for compelling reasons to exist.
Meanwhile, the banking sector is racing to connect. Five of the eight banks are already live on Favara, and the rest are testing. Cards remain dominant for retail spending, with 80 million card transactions in 2024 worth billions of Rufiyaa, evidence that Maldivians are as ready to tap as they are to transfer.
And beyond domestic banking, the frontier is expanding. Ooredoo’s recent partnership with PayPal hints at the next wave, cross-border interoperability. For freelancers, small businesses, and tourists, this could redefine how money flows in and out of the country. It is not just a fintech story; it is about integrating a small island economy into global payment networks without going through large intermediary banks.
Compared to neighbours, Maldives is now running faster than most. India’s UPI processes billions of transactions a month, but it took years of merchant incentives and public campaigns to get there. Sri Lanka’s LANKAQR has national QR acceptance but still struggles with usage beyond cities. Bangladesh’s Binimoy faltered on governance and adoption. Against this backdrop, Favara’s growth looks impressive. The challenge is not technological anymore; it is cultural and institutional.
Digital money systems succeed when they become invisible, when paying a bill or sending a salary does not feel like using a platform, but like breathing. The Maldives is close to that point technically, but not yet socially.
The country has built the pipes. The next test is whether it can change the flow.
Ooredoo Fintech and PayPal have announced their intent to collaborate in the Maldives, marking a significant step toward enhancing cross-border digital financial services in the country.
The partnership, expected to go live in 2026, will allow consumers in the Maldives to shop with PayPal merchants globally and transfer funds seamlessly between their PayPal and m-Faisaa accounts. The collaboration also aims to open new opportunities for Maldivian businesses by enabling them to sell to international customers, further integrating the nation into the global digital economy.
“As the Maldives accelerates its digital transformation, enabling cross-border transactions is a critical enabler for both our citizens and businesses,” said Khalid Al Hamadi, CEO and Managing Director of Ooredoo Maldives. “With Ooredoo Fintech and PayPal announcing their intent to collaborate towards linking PayPal wallets to local m-Faisaa wallets, this is an exciting time for individuals and businesses in the Maldives.”
The initiative represents a milestone in the Maldives’ journey toward a fully digital economy, empowering both consumers and enterprises to engage in global e-commerce and financial networks.
Across the world, the finance profession is evolving beyond traditional accounting and reporting. Today’s most sought-after professionals are not just number crunchers; they are strategic thinkers who understand data analytics, automation, sustainability, and risk management. In the Maldives, this shift has been slower to take root, but the need for it is becoming increasingly clear.
As the country’s economy diversifies, businesses are beginning to demand more from their finance teams. It is no longer enough for accountants and financial controllers to simply close books or prepare statements. Modern finance functions are expected to analyse data in real time, forecast future scenarios, and guide decision-making that supports growth. In this new landscape, companies that continue to rely solely on conventional qualifications and experience may find themselves at a disadvantage.
Skill-based hiring, recruiting and developing professionals based on demonstrable capabilities rather than job titles or years of experience, offers a way forward. It allows organisations to identify individuals who bring a blend of technical expertise and adaptability. For instance, a finance officer who understands automation tools or data visualisation platforms can save a company time, improve reporting accuracy, and uncover insights that traditional systems overlook. Similarly, knowledge of sustainability accounting and environmental risk assessment is becoming essential as businesses face growing expectations around ESG reporting and responsible investment.
For Maldivian companies, investing in skill-based hiring also means investing in long-term resilience. The country’s reliance on a small pool of finance professionals often leads to talent shortages and wage pressure. By widening the criteria for what makes a candidate valuable, prioritising skills in data literacy, digital finance, compliance, and sustainability, organisations can cultivate stronger teams from within rather than competing over a limited number of experienced hires.
Upskilling existing finance teams is another critical step. Training programmes, online certifications, and cross-functional exposure can transform traditional accounting staff into multi-skilled professionals who can handle digital transformation, budgeting for green projects, or managing financial risks in a globalised market. Such development not only strengthens company performance but also improves employee retention by giving professionals a clear path for growth.
As artificial intelligence, automation, and digital payment systems become more integrated into Maldivian business operations, the future finance function will need to be faster, smarter, and more strategic. Skill-based hiring ensures that the people leading these functions are prepared for what comes next.
For companies that want to thrive, the challenge now is to look beyond degrees and job histories and start recognising the value of skills that drive transformation. The Maldives’ next generation of finance leaders will not just manage money; they will manage change.
In September 1965, only weeks after independence, the Maldives took its first step onto the stage of world affairs by joining the United Nations. At the time, there were wider debates within the UN about whether very small states could shoulder the responsibilities of membership. The Maldives’ accession nevertheless went through smoothly, and its presence became part of that evolving conversation. It marked the beginning of an experiment: could the smallest of nations use the architecture of multilateralism not only to survive, but to shape global conversations?
Over the decades, the Maldives answered that question with an audacity that belied its scale. In 1989, the government convened the Small States Conference in Malé, a gathering that produced the Malé Declaration on Sea Level Rise. It was one of the earliest alarms about climate change, issued not by scientists
in northern capitals but by islanders staring at the encroaching sea. That document is often credited with laying the groundwork for what would soon become the Alliance of Small Island States, a coalition that transformed vulnerability into leverage. It was a turning point: the Maldives had discovered that the UN was not merely a hall of speeches but a mechanism through which the fragile could bend the narrative of the strong.
There have been other milestones, each an assertion of presence. The country has served terms on the Human Rights Council, linking the moral language of human dignity to the physical survival of islands. In 2018, it made a bold but unsuccessful run for a seat on the Security Council, a reminder of the limits of arithmetic in regional blocs. In 2021, then-Foreign Minister Abdulla Shahid was elected President of the General Assembly, steering the seventy-sixth session with what he called a “Presidency of Hope.” For a year, a Maldivian diplomat presided over the world’s most universal forum, an unlikely but telling triumph.
As this year’s High-Level Week unfolds in New York, the Maldives arrives with both history and urgency. The agenda is crowded: the 80th anniversary of the UN, stock-taking on the Sustainable Development Goals, debates over financing and technology. For most leaders, these gatherings are rituals of visibility. For the Maldives, they are lifelines. The country’s diplomats are pushing for the operationalisation of the Multidimensional Vulnerability Index, a metric designed to account for climate and economic fragility rather than simple income levels. Without it, access to concessional finance is curtailed, leaving islands trapped by their own statistical “middle-income” labels. The fight over this index is technical, even bureaucratic, but for the Maldives it could mean the difference between building seawalls and surrendering islands to the tide.
There is also the wider SIDS blueprint, known as ABAS, the Antigua and Barbuda Agenda for SIDS, covering the next decade of resilience and development. For the Maldives, it is both a shield and a roadmap: a promise that the concerns of small islands are not afterthoughts but recognised pillars of the international system. Linking these commitments to bilateral pledges during UNGA week is where strategy becomes survival.
Beyond climate and finance, new debates are emerging that will also touch the Maldives. Artificial intelligence, once a distant abstraction, is now a matter of governance, integrity, and capacity. When the General Assembly discusses AI, the Maldives can argue that small states must not be left behind in shaping the rules that will govern elections, economies, and even disaster response. By presenting itself as a laboratory for ethical AI use in microjurisdictions, it can carve out relevance in a conversation otherwise dominated by giants.
This is the peculiar genius of Maldivian diplomacy: to inhabit multilateralism not as a theatre of grand gestures but as an arena where every procedural innovation, whether a vulnerability index, a declaration, or a council seat, becomes a brick in the seawall. In a chamber where the applause fades quickly and resolutions pile high, the Maldives has learned to convert symbols into leverage.
Even when its leaders are absent from the podium, the country’s presence in New York remains vital. For the Maldives, retreating into isolation is not an option. Its survival and prosperity depend on being heard in the world’s most crowded room, turning the vulnerabilities of small islands into a case for collective responsibility. From Malé in 1989 to Manhattan today, the smallest states have shown that they can shape the largest questions.
The Maldives has marked 60 years since joining the United Nations, reflecting on six decades of active engagement with the international community and its role in advancing the interests of Small Island Developing States. The anniversary, which fell yesterday, was commemorated with messages of commitment to multilateralism and international cooperation.
The Maldives became a member of the UN on 21 September 1965, shortly after gaining independence. Since then, the country has been a vocal advocate for issues such as climate change, sustainable development, human rights, and the protection of small states. The UN has in turn supported the Maldives with technical assistance, capacity-building programmes, and efforts to achieve the Sustainable Development Goals.
Over the years, the Maldives has held prominent positions within the UN. These include multiple terms on the Human Rights Council, the Presidency of the 76th General Assembly, and initiatives such as the establishment of the International Day of Women in Diplomacy. The Maldives has also been behind efforts to create a Voluntary Technical Assistance Trust Fund to support the participation of Least Developed Countries and Small Island Developing States in the work of the Human Rights Council, and has contributed to the recognition of the right to a clean, healthy, and sustainable environment.
President Dr Mohamed Muizzu, in a message marking the anniversary, described the Maldives’ entry into the UN as a moment of hope and ambition. He noted that the relationship between the Maldives and the organisation has since evolved into a flourishing partnership that has helped strengthen healthcare, education, governance, and human rights.
Highlighting the Maldives’ leadership on climate action, the President said the country’s efforts have shown that even the smallest states can make meaningful contributions to peace, justice, and sustainability. He also called for reform within the UN to meet modern challenges, stressing the importance of maintaining trust in decision-making and citing the ongoing conflict in Gaza as an example of the need for decisive action.
As the Maldives looks back on its 60-year journey with the UN, it has reaffirmed its commitment to the principles of the UN Charter and its intention to continue advocating for a more just, resilient, and sustainable world.
The Free Trade Agreement (FTA) between the Maldives and China, which came into effect on 1 January, is expected to deliver significant economic benefits, particularly in fisheries exports, according to Chinese Ambassador to the Maldives Kong Xianhua.
In an interview with state media, the Ambassador said the agreement has already created opportunities for Maldivian products, especially fish and seafood, in the Chinese market. Prior to the FTA, Maldivian exports were limited in China despite the country being one of the world’s largest seafood importers. The duty-free access granted under the FTA has started to raise demand, giving Maldivian goods a foothold in the Chinese market.
Under the agreement, tariffs on over 90 percent of Maldivian exports, including nearly all fisheries products, have been removed. This was a key priority for President Dr Mohamed Muizzu, who moved to activate the FTA after years of delays. Officials expect the agreement to expand the export and processing of Maldivian fish while also facilitating re-exports and creating new job opportunities.
The government projects that access to China’s market of over 1.4 billion people could increase the bilateral trade volume from the current level of around USD 700 million to as much as USD 1 billion annually. Ambassador Kong noted that the most visible impact of the FTA is likely to be seen within one to two years, with closer cooperation between Maldivian and Chinese businesses already under way.
In addition to fisheries, the agreement contains provisions for investment protection and facilitation, which could encourage greater Chinese investment in Maldivian industries such as marine product processing and aquaculture. It also offers avenues for Maldivian service providers and entrepreneurs to expand into the Chinese market, broadening the scope of bilateral trade and investment.
Dhiraagu turns 37 this year, marking more than three and a half decades of progress that chart the Maldives’ path from limited communications to a nation connected by modern digital infrastructure.
When Dhiraagu was established in 1988, communication across the scattered atolls relied heavily on fixed-line services. Its founding marked the first organised effort to connect the country through modern telecommunications.
For many Maldivians, the company’s history runs parallel to their own. Families remember the first landline installed at home, the arrival of mobile phones that changed how people stayed in touch across the islands, and the expansion of internet access that opened the world to a new generation. Successive decades saw each step forward become part of everyday life, shaping how communities learned, worked, and connected.
The company also became a marker of national progress. In 2019, Dhiraagu launched the Maldives’ first commercial 5G service, placing the country among the region’s early adopters of next-generation technology. Earlier this year, it reached another milestone by bringing fibre broadband to every inhabited island, ensuring even the most remote communities could access highspeed internet.
These achievements show how the Maldives has kept pace with global trends in connectivity despite the challenges of geography. An island nation that depends on tourism, trade, and services cannot thrive without reliable digital networks. Dhiraagu’s work in building and maintaining those networks demonstrates how telecommunications became not just a utility, but an enabler of national development.
At 37, Dhiraagu shows how a single company helped stitch together a country spread across hundreds of islands. What began with landlines has grown into a network that links homes, schools, hospitals, and businesses across the atolls. In that sense, Dhiraagu has become the nation’s connection, a presence that reflects how modern Maldives communicates, learns, and grows.
President Dr Mohamed Muizzu has established the Digital Transformation Council to oversee the implementation of the Maldives 2.0 roadmap, a vision aimed at shaping the country into a digital-first nation.
Formed on the recommendation of the Cabinet, the Council will be chaired by the President and serve as the highest authority to guide and monitor the initiatives set out in the Maldives 2.0 Roadmap 2025–2028.
The Council consists of nine members: Minister of Homeland Security and Technology Ali Ihusaan, Minister of Finance and Planning Moosa Zameer, Minister of Education Dr Ismail Shafeeu, Minister of Health Abdulla Nazim Ibrahim, Minister of Cities, Local Government and Public Works Adam Shareef Umar, Chief of Staff at the President’s Office Abdulla Fayaz, Minister of State for Homeland Security and Technology Dr Mohamed Kinaanath, Digital Transformation Strategist at the President’s Office Siyah Khaleel, and Managing Director of TradeNet Maldives Corporation Limited Saeeda Umar.
The Maldives 2.0 programme, first introduced by President Muizzu in May, is built on eight key pillars including digital identity, open data sharing, cybersecurity, modern legal frameworks, sovereign digital infrastructure, citizen-centred e-government, sectoral digital transformation, and ICT ecosystem development. The government has described the initiative as one that aims to modernise public services, strengthen trust in digital systems, and encourage innovation.
According to the President’s Office, the roadmap focuses on creating an environment where government operations are streamlined, service delivery is timely, and access to state services is made more transparent and efficient. The plan also envisions reducing bureaucratic delays and improving integration of services across all islands.
By establishing the Council, the government seeks to ensure that the Maldives 2.0 vision is carried out in line with its stated goals of building a secure, citizen-focused and digitally independent future.
Artificial intelligence is slipping into every corner of business, society and governance. From chatbots handling customer queries to algorithms screening loan applications, the promises are transformative, but so are the risks. Around the world, governments are racing to catch up, trying to balance innovation with oversight. For the Maldives, the question is not whether regulation is needed, but how and when to begin.
In California, new laws now forbid the use of AI to replicate an actor’s face or voice without consent. Platforms must obtain permission from performers or their estates before publishing AI-generated likenesses. The state has also advanced rules to address bias in automated decision systems, empowering agencies to penalise discriminatory outcomes. Another law requires AI chatbots to clearly disclose that they are not human when interacting with users. These developments highlight the urgency of setting boundaries in a fast-moving technological landscape.
Across the Atlantic, the European Union is preparing to implement the AI Act, a risk-based framework that classifies AI systems by their potential impact. It imposes stricter oversight on highrisk systems, demands transparency, and bans applications considered unacceptable. In Asia, Malaysia recently established a National AI Office to steer policy, ethics, and governance. Globally, a clear trend is emerging: AI can no longer exist in a regulatory vacuum.
The Maldives may not be an AI hub, but its industries are increasingly touched by it. From personalised tourism recommendations and smart energy management to automated banking tools, AI is finding its way into local systems. Without clear rules, however, these tools could create more problems than they solve.
The risks are easy to imagine. Misleading or AI-generated content used by hotels or influencers could harm the country’s image if not properly disclosed. Biased algorithms in recruitment or financial decisions could unfairly disadvantage applicants. Unregulated data use could expose sensitive personal information. And when mistakes happen, questions of accountability will inevitably arise.
This is why the Maldives needs to start building its own framework for AI governance. It does not have to be sweeping legislation, but it should set the direction. A practical approach could include requiring clear disclosure when people interact with AI systems, defining responsibility when AI causes harm, and introducing data protection rules suited to machine learning environments. A risk-based structure could ensure that low-impact uses, such as chatbots or translation tools, face minimal restrictions, while higher-risk applications like surveillance, credit scoring, or automated decision-making undergo greater scrutiny.
The country could also establish regulatory sandboxes to allow companies to test AI solutions under supervision before scaling them up. This would encourage innovation while ensuring safety and transparency. Building public awareness and training regulators, lawyers, and developers would also be key to making oversight meaningful rather than symbolic.
For the Maldives, early action on AI regulation would send a powerful message. It would show that the nation values innovation but understands the importance of trust and ethics in technology. As the tourism, financial, and governance sectors begin to adopt AI, clarity will protect both consumers and businesses from reputational and legal risk.
Artificial intelligence is not waiting for policymakers to catch up. Around the world, laws are already being written to determine what machines can say, decide, or create. The Maldives still has time to shape its own path before global rules begin to define it. Acting now would not just be about regulation, but about leadership in a future where human judgment and artificial intelligence must coexist responsibly.
The soldier’s duty is to defend the nation. The police officer’s is to uphold the law. These roles are already heavy with responsibility, yet in the Maldives, they have been complicated by something else: business.
The Sifainge Cooperative (SIFCO) and the Police Cooperative Society (POLCO) were not created to compete in the market. They were established to provide welfare and support to their members, offering affordable goods, small services, and social security. Over time, however, they expanded into sprawling enterprises. SIFCO today runs retail outlets, catering operations, a hospital, real estate and even fireworks ventures. POLCO, too, has reached far beyond its mandate, including into property development.
This expansion has come at a cost. By straddling the worlds of service and commerce, these cooperatives have blurred the line between duty and profit. They enjoy privileges no private competitor can hope to match, while wielding the authority of the uniform. That imbalance discourages fair competition and undermines the trust the public should place in its defenders.
And corruption has flourished in this grey zone. POLCO’s housing projects, meant to ease the lives of police officers, became a billion-rufiyaa debacle marked by stalled construction, inflated costs, and contracts linked to the same tight circle of interests. Parliament’s Finance Committee is now sifting through audits that expose irregularities stretching back years. What was meant to provide welfare instead drained public funds and fuelled public outrage.
The rot is not confined to failed housing schemes. In August, the police confirmed that USD 30,000 in cash went missing from the evidence lockup. The money, seized as evidence in 2019, was discovered short during a review earlier this month. A bag of damaged notes was found where it had been kept, and while a criminal probe has been launched, no progress has been made public since the initial confirmation. This is not the first time allegations of missing property have surfaced, but it is the first time the police themselves have acknowledged such a serious breach. It adds another layer to the picture of corruption and mismanagement eroding public confidence in the institutions charged with safeguarding law and order.
SIFCO’s ventures, meanwhile, raise similar questions. What began with small canteens for soldiers has grown into one of the country’s largest catering services, a retail chain, a military hospital, and ambitious real-estate projects. These businesses are not small welfare schemes. They are commercial players, competing in the market with an unfair advantage. They are enterprises run not by entrepreneurs but by institutions meant to protect the state.
The argument for their existence rests on welfare. Soldiers and police deserve support, better housing, and social safety nets. That is true. But the method matters. In countries with stronger governance frameworks, welfare for security personnel is delivered through transparent state policies or public and private partnerships. The British police do not run property companies. The German army does not compete with supermarkets. Where welfare is needed, it is provided by the state, not through opaque commercial arms of security agencies.
The danger is not just financial waste but a corrosion of legitimacy. Security forces rely on public trust. If citizens come to see them as players in business scandals, implicated in corruption rather than shielding the nation from it, the credibility of the uniform itself is weakened.
The lesson is clear. Welfare for those in uniform should not require business empires. The state must step up with transparent policies, funding, and oversight. And the cooperatives must be stripped back to their original, modest purpose or dissolved altogether.
The soldier should not be a shopkeeper. The police officer should not be a property developer. And when evidence itself disappears from police custody, the public has every reason to question whether those sworn to uphold the law are instead eroding it from within.
The Maldives is heading towards a demographic turning point that could reshape its economy, workforce, and development priorities. While the issue of falling birth rates is a global concern, the UNFPA Maldives Population Projection 2022–2062 warns that the country’s low fertility rate could have far-reaching economic implications in the coming decades.
The Maldives’ Total Fertility Rate (TFR) peaked in 1995 at six children per woman. Since then, fertility has steadily declined, dropping to 1.8 in 2021 and further to 1.7 in the 2022 Census— well below the replacement rate of 2.1. Although the population is projected to grow until around 2050, it will begin to contract thereafter.
By 2044, the Maldives will have officially entered the stage of an aged society, and by 2052, it is projected to become a super-aged society, with nearly one in three Maldivians aged 65 or above. This shift will transform the country’s economic structure, reducing the working-age population while expanding the number of dependents reliant on state support.
An ageing population inevitably leads to a shrinking labour force, a key concern for a small island economy already dependent on foreign workers. The 2022 Census shows that nearly 25 percent of the resident population comprises expatriates, mainly employed in tourism, construction, and essential services.
With fewer Maldivians entering the workforce, the economy will increasingly depend on migrant labour to sustain productivity. However, reliance on a large foreign workforce poses fiscal and policy challenges, particularly as most expatriate workers remain outside the country’s social protection framework. If left unaddressed, this imbalance could strain the pension system and create gaps in productivity and tax contributions.
The government may need to reconsider its current labour and migration policies, including wage protections, skill development, and integration measures, to ensure economic stability. Policies that currently exclude migrant workers—such as the minimum wage, which applies only to Maldivians—may require revision to reflect the realities of a changing demographic structure.
The demographic shift will place immense fiscal pressure on public finances. As the elderly population grows, spending on healthcare, pensions, and welfare will rise sharply, while tax revenues are likely to decline due to a smaller working-age base.
Healthcare spending is projected to increase as chronic diseases, geriatric care, and long-term support needs expand. Social protection systems will need substantial reform to remain sustainable. Without these adjustments, the government could face widening fiscal deficits and limited capacity for growthoriented investments.
While ageing presents one set of challenges, the declining child population brings another. Schools in smaller islands are projected to have fewer students—some unable to fill even a single classroom. As the education sector contracts, resources may need to be reallocated to vocational training and adult reskilling programmes to sustain productivity in a smaller workforce.
Automation and digital transformation will also become increasingly vital to offset labour shortages. Investments in education technology, remote work, and high-skill training could help the Maldives maintain competitiveness as the demographic structure shifts.
Globally, countries struggling with low birth rates—such as Japan, Italy, and South Korea—have experimented with various incentives, from cash bonuses to family subsidies. Taiwan, for instance, is introducing a policy in 2026 to provide USD 3,320 per newborn, with higher payouts for multiple births. However, such measures have often failed to produce lasting results without broader support systems for working parents.
In the Maldives, one major barrier to childbirth remains economic uncertainty and gendered employment conditions. Although public sector employees receive six months of maternity leave and one month of paternity leave, private sector workers—where most women are employed—are entitled to only three months of maternity leave. This discrepancy, coupled with limited childcare options, discourages many families from having more children. To mitigate economic risks linked to declining fertility, the Maldives will need comprehensive family and labour reforms, including gender-inclusive leave policies, subsidised childcare, and incentives for flexible work arrangements.
The next four decades will test the Maldives’ economic resilience. A smaller, older population could slow growth, challenge fiscal sustainability, and widen inequalities if left unmanaged.
However, strategic policymaking—focused on labour diversification, inclusive migration, healthcare reform, and family support—can help balance demographic realities with economic opportunity. By adapting early, the Maldives can transform its demographic challenge into a chance to build a more sustainable, innovative, and inclusive economy.
In the long term, sustaining the workforce and creating an enabling environment for both citizens and foreign workers will be essential. The demographic clock is ticking, and how the Maldives responds now will determine the shape of its economy for generations to come.
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