The government of Maldives said it plans to build an $8.8 billion financial hub backed by Dubai-based MBS Global Investments as the country seeks to address a debt crisis.
The Maldives International Finance Centre, to be built in the capital Malé over the next five years, will have no corporate taxes or residency requirements and offer tax-free inheritance, MBS said in a statement.
MBS, the family office of Qatari royal Sheikh Nayef Bin Eid Al Thani, is backing the project, according to the statement, which didn’t disclose financial terms. The Financial Times reported earlier on the project.
The hub is designed to be a “freezone” for blockchain and digital assets, according to a website for the MIFC. Plans include a 3,500-capacity conference center and three residential and office towers. Residents will have access to multicurrency and private offshore banking.
The Maldives, located in the Indian Ocean southwest of Sri Lanka and India, is grappling with a debt crisis and has struggled to shore up cash to address upcoming maturities.
Moody’s Ratings has estimated the country’s external debt obligations will total about $600 million to $700 million this year and more than $1 billion by 2026. The country avoided a potential default on an Islamic bond payment last year after India extended a $50 million interest-free loan.
“Maldives’ fragile external liquidity position will likely worsen further without near-term financing,” Moody’s said in a report in September, when the ratings firm downgraded the country’s credit rating deeper into junk territory.
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