Minister of Economic Development, Transport and Trade Mohamed Saeed has stressed that trust, economic diversification and digital transformation will be critical to securing the Maldives’ long-term prosperity, as the government works to reduce dependence on tourism and build new engines of growth.
Speaking at the launch of DINAF-48, a fund established by the Dhivehi Investment Nafaa Fund, Saeed said economic development is fundamentally built on trust. He noted that confidence among businesses, investors and institutions is essential for sustaining economic activity, particularly in a small country such as the Maldives.
According to the Minister, a lack of trust can significantly slow economic progress, while strong confidence creates opportunities for investment and growth. As an example, he pointed to the tourism industry, which has flourished through sustained investor confidence and international trust in the Maldives as a destination.
Saeed said the government remains committed to supporting entrepreneurs and facilitating trade, although he noted that the trade sector has not expanded at the same pace as tourism.
“The trade sector does not grow on its own. It exists largely as an industry that supports tourism,” he said, emphasizing the need to broaden economic activity into new sectors.
The Minister highlighted that the recent upgrade of the Maldives’ sovereign credit rating by Fitch Ratings reflects growing international confidence in the government's economic reforms and fiscal management measures. He said such recognition demonstrates that global institutions are increasingly viewing the Maldives as a stable and credible investment destination.
He also noted that the newly launched DINAF fund, which is registered with the Capital Market Development Authority (CMDA), represents an important step in strengthening the country’s financial and investment sectors and expanding opportunities for local investors.
While tourism remains the backbone of the Maldivian economy, Saeed warned that relying solely on the sector would not be sufficient to achieve higher levels of economic growth in the future. He pointed to recent global developments, including conflict in the Middle East, which he said contributed to a five percent decline in tourist arrivals and highlighted the risks associated with dependence on a single industry.
Tourism Ministry statistics show that 994,901 tourists visited the Maldives so far this year, leaving the country just 5,099 arrivals short of the one million mark. However, arrivals remain below the corresponding period last year, when the one million visitor milestone had already been surpassed.
To address these challenges, the government is pursuing an ambitious diversification strategy focused on expanding the digital economy and developing new industries. The administration aims for the digital sector to contribute 15 percent of the country's Gross Domestic Product by 2030.
Saeed said the recent introduction of PayPal services in the Maldives through a partnership with Ooredoo Fintech marks a significant step toward achieving that goal. The platform is expected to improve access to international payment services for businesses, freelancers and digital creators, opening new opportunities within the digital economy.
The government also plans to introduce additional digital tools for young people and establish a modern creator hub before the administration completes three years in office.
Beyond digital development, Saeed said the government is working to diversify the economy through sectors such as offshore bunkering, financial services and renewable energy economic zones. He added that President Dr Mohamed Muizzu’s economic policies are focused on encouraging private-sector investment, creating higher-paying jobs, strengthening public finances and improving debt sustainability.
The Minister called for a collective national effort to support economic transformation, emphasizing that sustainable growth will require cooperation across sectors and regions. He noted that targeted regional development initiatives, beginning with areas such as Addu City, will play an important role in creating a more balanced and resilient economy.
According to Saeed, building trust at both the domestic and international levels will remain the foundation of the Maldives’ economic journey as the country seeks to create new opportunities beyond tourism and secure long-term prosperity for future generations.
