Addu City Designated as First SME Zone; President Muizzu Announces Major Tax and Rent Exemptions

President Dr. Mohamed Muizzu has announced the designation of Addu City as the first Small and Medium Enterprise (SME) Zone in the Maldives. The announcement was made on Saturday night during the awards ceremony of the 'Maldivian Creativity Exhibition 2026'. Under the new policy, businesses physically operating in Addu City will be eligible for a host of incentives for a period of three years, starting from January 1st, 2027. The incentives include a full waiver of land rent for businesses operating on state-owned land, complete exemption from Business Profit Tax (BPT) and Income Tax, substantial reductions in annual fees and quotas for expatriate workers, and customs duty exemptions on machinery imported for business use. President Muizzu stated that the primary objective of the policy is to foster economic development in Addu City and create more employment opportunities for residents. He emphasized that expanding business activity and increasing the income of the city's population is a key goal of the government. The Economic Ministry is expected to release further details of the incentive package within the coming days.