Addu Regional Free Zone Opens to Boost Southern Economy and Trade

The Maldives has officially inaugurated the Addu Regional Free Zone, opening applications for businesses eager to establish operations in the southern hub. Ministers Mohamed Saeed and Ali Ihusaan led the inauguration ceremony at Addu High School, marking a significant milestone in the government's strategy to decentralize economic growth. Located within the Hithadhoo Port area, the initiative has allocated 1.7 hectares of land, with an initial 20,000 square feet specifically prepared for free zone activities. The project includes a designated duty-free cargo and storage zone, developed through a collaboration between Maldives Ports Limited (MPL), the Ministry of Economic Development, and the Maldives Customs Service. Mohamed Lam’aan, Deputy Managing Director of MPL, stated that the project aligns with President Dr. Mohamed Muizzu’s economic vision. He emphasized that the zone is designed to stimulate the southern economy, provided the business community actively participates in its development. Minister of Economic Development Mohamed Saeed highlighted that free zones—though a relatively new concept in the Maldives—are proven drivers of growth in industrialized nations. To ensure the zone's viability, the government plans to offer special concessions and incentives between 2027 and 2029 to attract both local and foreign investment. First announced by President Muizzu during the opening of the Parliament earlier this year, the project is part of a wider national policy to create investment zones for Small and Medium Enterprises (SMEs). The ultimate goal is to transform Addu City into a premier business and IT hub for the archipelago. The zone will support a diverse range of commercial activities, including bonded warehousing, vehicle refurbishment, manufacturing, and re-export services. To facilitate this, the government is establishing an investment-friendly legal framework to reduce barriers for entrepreneurs. Interested businesses are invited to submit proposals from May 13 to June 11. Applications must detail specific land requirements, intended business activities, and lease preferences. With land allocation rates already established, the government is now looking for stakeholders to turn the physical infrastructure into a thriving economic center.