- Maldives has launched a $9B blockchain-based financial hub to reduce tourism dependency and create 16,000 jobs.
- The five-year megaproject aims to triple the nation’s $7B GDP and establish Maldives as a leading blockchain hub in South Asia.
- The country faces stiff regional competition from crypto-friendly nations like Dubai, Hong Kong, and Singapore.
South Asian tourism nation Maldives is set to build a mega blockchain hub in its capital to help diversify its economic income channels and manage its ongoing fiscal woes.
Maldives Partners with MBS Global for $9 Billion Financial Hub Amid Debt Woes
Per recent reports by the Financial Times, the archipelago nation has partnered with Dubai-based company MBS Global Investments to finance this gigantic project, which is estimated to cost $9 billion. The project is expected to include an 830,000-square-meter International Financial Centre that could employ 16,000 people. Furthermore, the ambitious project will span five years, according to the agreement signed on Sunday.
Maldives is widely known for its tourism sector, which generates about 30% of the country’s GDP. Last year, the country welcomed roughly 2 million tourists from around the globe and hopes to better that figure this year.
The South Asian state also has a booming fishing industry which rakes in about 10% of its GDP. However, the country’s fishing market experienced a massive decline in the past year. Reports indicate that Maldives exported about 40,000 metric tons of fish in 2024, an almost 50% drop from the previous year. Besides, the archipelago country is currently battling economic issues, mainly caused by financial mismanagement. At present, the Maldives’ fiscal debt exceeds its GDP of $7 billion.
Megaproject Aims to Diversify Economy and Triple GDP
The country’s Finance Minister Moosa Zameer, believes the project could help set the economy on the right track by reducing overdependence on tourism and mitigating the current economic crisis. Per forecasts, the hub, which will be built the capital city of Malé, could boost the nation’s GDP by 200%.
This megaproject ranks as one of the biggest crypto investments in South Asia and reflects the Maldives’ goal to become a top blockchain hub on the continent. However, the country faces regional competition from financial technology superpowers like Hong Kong, Dubai, and Singapore.
Asia’s Leading Crypto Hubs Attract Startups with Pro-Friendly Regulations
Hong Kong has become a global blockchain haven due to its pro-crypto regulations. Thus, it has attracted hundreds of startups and firms over the past few years. The CEO of WOW Summit explained that the country offers a controlled regulatory environment where companies can develop new and innovative products.
Singapore also houses several cryptocurrency exchanges and Web3 firms, several of which are headquartered in the country. The island country’s friendly regulatory atmosphere has continued to attract global investors.
Dubai has launched headline-making blockchain projects in the region, including the DMCC, which hosts over 500 crypto companies. According to Reuters reports, the country also plans to unveil a crypto tower by 2027. Meanwhile, the nation is hosting the TOKEN2049 conference, which has witnessed attendance by high-profile names in the blockchain space.
