Special economic incentives for Addu were announced in this year’s Presidential Address
The Government will provide further details of the measures in the coming days
President Dr Mohamed Muizzu has announced that businesses operating on state-owned land in Addu will be exempt from paying land rent, as part of a package of economic incentives aimed at boosting business activity in the southern region.
The Government has decided to designate Addu as a special economic zone for three years, from 2027 to 2029, covering Addu City as well as the islands of Hithadhoo and Meedhoo in Addu Atoll. The initiative is intended to encourage investment in small and medium-sized enterprises by offering a range of financial and business-related concessions.
President Dr Muizzu first announced the decision to introduce special economic incentives for Addu in this year’s Presidential Address. He said the measures would make it easier for businesses to establish themselves and operate in the region.
Further details of the Government’s plans were outlined by the President at the awards ceremony of the Maldives’ Creative Arts Exhibition. He said the incentives would benefit both existing businesses in Addu and those planning to relocate there, with the Ministry of Economic Development expected to announce the specific arrangements in the coming days.
Among the measures announced, businesses operating on state-owned land will be exempt from paying rent for the three-year period.
“Businesses will not have to pay rent for state-owned land. They will not have to pay BPT or income tax. Annual fees, which currently range from MVR 200,000 to MVR 300,000, will be reduced. There will also be exemptions from annual fees for vehicles imported for use by SMEs. We have decided to provide numerous incentives of this kind to businesses operating in Addu City,” President Muizzu said.
The President said the main objective of the initiative was to create more employment opportunities in Addu and accelerate the region’s economic development.
He described the incentives as a pilot project, explaining that the Government intends to assess the results in Addu before introducing similar arrangements in other parts of the Maldives by designating additional atolls as economic zones.
The Government’s decision follows consultations with Addu’s business community through the Addu Business Dialogue, held in Addu on 13 and 14 May this year. The forum provided an opportunity for local businesses to share their views and recommendations on measures to support economic growth in the region.
At the time, the Government said the feedback and proposals gathered through the dialogue would be compiled and discussed at Cabinet level as part of efforts to develop policies that respond to the needs of businesses in Addu.
