MMA Warns Real Estate Revenue Targets Could Undermine Fiscal Goals in 2027 Budget

The Maldives Monetary Authority (MMA) has cautioned that if the revenue targets set in the 2027 state budget for the real estate sector are not met, it could threaten the government's fiscal stability. In technical advice sent to the People's Majlis, the central bank highlighted that the government aims to establish real estate as a main pillar of the economy by 2040. The budget projects earning 1.2 billion rufiyaa from land sales and exchange fees in 2028, and 1.6 billion rufiyaa in 2029. However, the MMA warned that failing to achieve these figures would make it difficult to keep state revenue below 32% of GDP—a key fiscal target. It stressed the need for a system to monitor the implementation of a national plan for the real estate industry. The MMA also emphasised the importance of diversifying the economy away from its heavy reliance on tourism, which currently accounts for 70% of GDP directly and indirectly. It cited risks from global oil price fluctuations and the Middle East crisis affecting travel. The central bank called for collaboration with the government to expand the financial sector alongside real estate and to implement reforms outlined in its strategic plan.