TLDR
- Dubai-based MBA Global Services is investing $8.8 billion in a blockchain hub in the Maldives
- The Maldives International Financial Center aims to diversify the country’s economy beyond tourism
- The project exceeds Maldives’ $7 billion GDP and will employ up to 17,000 people
- Investors will receive benefits including 100% foreign ownership and special tax regulations
- The hub faces competition from established crypto centers like Singapore and Hong Kong
The Maldives has inked a deal with Dubai-based MBA Global Services to build a $9 billion blockchain hub that aims to attract cryptocurrency investors and blockchain companies to its shores.
The investment is massive by any standard but especially for the Maldives. At nearly $9 billion, the project exceeds the country’s entire GDP of around $7 billion.
The blockchain hub, formally named the Maldives International Financial Center, represents the country’s biggest effort to move beyond its traditional economic pillars of tourism and fisheries. The project will be located in the capital city of Male.
According to reports, MBA Global Services will provide as much as $8.8 billion for the hub’s development. The company plans to tap into its network of high-net-worth individuals and wealth management firms for funding.
Economic Strategy and Investor Benefits
Finance Minister Moosa Zameer highlighted the economic strategy behind the move.
“The Maldives faces the biggest challenge in repaying external debt maturing over the next two years,” Zameer said in an interview with Financial Times.
The project “could help ease some of the financial pressures we are facing,” he added. The government hopes to triple its GDP within four years through blockchain investment.
To attract cryptocurrency firms and investors, the Maldives plans to operate the hub as a “financial freezone for blockchain and digital assets.” This structure will offer several key benefits to international service providers.
Foreign firms will enjoy 100% ownership rights within the hub. The government also plans to implement special regulatory tax treatments and streamline registration and licensing processes.
Banking services will be provided to companies operating within the zone. These incentives are designed to attract cryptocurrency investors facing tax uncertainty in the United States and other regions.
The hub will be substantial in size, spanning 830,000 square meters. It will accommodate 6,500 residents and create employment for up to 17,000 people.
The project is expected to take five years to complete. MBA Global Services is the family office of Qatari royal Sheikh Nayef bin Eid Al Thani and manages assets worth $14 billion.
Preliminary funding commitments have already exceeded $4 billion. The investment will be structured as a joint venture with the Maldives government and deployed through a combination of equity and debt.
The Maldives’ move mirrors Dubai’s transformation from a tourism-focused economy to a digital asset hub over the past four years. Dubai has made substantial progress in its Web 3 adoption, with Eric Trump recently confirming cryptocurrency payments in Trump Towers Dubai.
However, the Maldives will face strong competition in the region. Singapore and Hong Kong currently lead Southeast Asia’s cryptocurrency and blockchain sectors, while Thailand is also working to close the gap following KuCoin’s expansion into the country.
