Maldives plans USD 9 bln blockchain hub to tackle debt burden

The move comes in the context of the island nation’s efforts to find alternative revenue sources due to growing concerns over its external debt obligations. The project, titled the Maldives International Financial Centre, is set to be built in the capital Malé over a five-year period. According to the project's masterplan, the hub will span 830,000 square metres and accommodate up to 6,500 residents while employing around 16,000 people. It is designed to operate as a financial free zone focusing on blockchain technologies and digital assets, with government projections suggesting the initiative could triple the country’s GDP within four years and generate over USD 1 billion annually by the fifth year. Investment exceeds Maldives' GDP MBS Global Investments, a private family office reportedly managing USD 14 billion in assets, has committed to lead the funding. It’s worth noting that the USD 8.8 billion investment surpasses the Maldives' current annual GDP of approximately USD 7 billion. A representative from MBS stated that over USD 4–5 billion in funding has already been secured through a mix of equity and debt, sourced from a network of wealthy individuals and family offices. The official acknowledged the scale of the commitment but said partnerships and financial arrangements were in place to proceed with the plan. Officials from the Maldives government view the initiative as a strategic pivot away from dependence on tourism and fisheries. A finance ministry official described the country's current financial strain as its ‘biggest challenge,’ pointing to significant repayments due in the next two years. According to the Financial Times, Debt obligations include between USD 600–700 million due in 2025 and a further USD 1 billion in 2026, among them a USD 500 million sukuk. The government recently accepted a USD 760 million support package from India to help avoid default, and international ratings agencies continue to highlight the nation’s vulnerability to external liquidity shocks. Maldivian officials noted that while traditional partners such as India and China remain significant for infrastructure and aid, the financial hub represents a shift toward a more commercially driven model of development.