Toggle Offcanvas
...
 
Business images of Maldives

Economy of Maldives

Maldives were renowned for cowries, coir rope, dried tuna fish (Maldive fish), ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.Nowadays, the mixed economy of Maldives is based on the principal activities of tourism, fishing and shipping. This results from the Maldives' strategic geographic positioning near crucial sea routes essential for China's energy provisions. Consequently, China has persistently utilized its economic resources to enhance its sway over the Maldivian government.

Top Sectors in Maldives

Shipping in Maldives

Beginning in the 1990s, the Port of Male received over £10 million in loans from the Asian Development Bank designated for infrastructure upgraded.The ADB notes that from 1991 to 2011, due to the loans, the ports annual throughput in freight tons equaled 273,000. By 2011 that number reached 1 million.The ADB also provided training for port authority staff to increase efficiency. ADB and the Government of Maldives, in a joint report address ship turn-around, "What used to take about 10 days in 1991 was achieved in 3.8 days by 1997, and about 2.6 days by 2014".

Tourism in Maldives

Tourism is the largest economic industry in the Maldives, as it plays an important role in earning foreign exchange revenues and employing 25,000 people in the tertiary sector of the country. The archipelago of the Maldives is the main source of attraction to many tourists visiting the island country. Chinese entrepreneurs have been swiftly amassing assets connected to the tourism sector in the Maldives. Given that tourism is the primary economic driver in the Maldives, this trend is affording the Chinese substantial influence over the nation's economy.The tourism industry is especially vulnerable to climate change: as one of the island nations expected to be most impacted by climate change, sea level rise and subsequent increased extreme weather, coastal flooding, and coral bleaching damage the natural attractions that bring many of the tourists to the country. During the tenure of former President Yameen, the Maldives' indebtedness to China escalated to an amount equivalent to one-fifth of the nation's GDP. Concurrently, China assumed a pivotal role in the tourism sector, a crucial component of the Maldivian economy.

Fishing in Maldives

The fishing industry in the Maldives is the island's second main industry. According to national tradition in the words of former President Maumoon Abdul Gayoom, "Fishing is the lifeblood of our nation, it is inborn. From the soil on which we live, to the sea around us, it remains an integral part of our existence. Fishing, and our country and its people, one and shall remain inseparable forever."The Maldives has an abundance of aquatic life and species of fish. Common are tuna, groupers, dolphin fish, barracuda, rainbow runner, trevally and squirrelfish and many more. Aside from being of essential importance to the economy, fishing is also a popular recreational activity in the Maldives, not only among locals but by tourists. The islands have numerous fishing resorts which cater for these activities.


Maldives - Key Economic Indicators

Exports & Imports

The Maldives primarily exports fish and fish products (including skipjack tuna, canned tuna, and fresh fish), with some additional exports of garments and live coral. According to the World Bank, Maldives' exports reached $542 million in 2022. Imports, on the other hand, are significantly higher, with data from the Asian Development Bank (ADB) suggesting they were around $3.2 billion in 2022.

Balance of Trade

The Maldives faces a negative trade balance, as mentioned earlier. This means the total value of goods they import is much higher than the value of their exports. Tourism, a major revenue earner, helps offset this imbalance.

Infrastructure Development

Due to the archipelago nature of the Maldives, infrastructure development faces unique challenges. Road networks are limited, primarily concentrated on the main island of Malé. However, the government prioritizes infrastructure projects, with the ADB reporting Maldives has over 16,000 kilometers of roads. Efforts are underway to develop inter-island transportation links through ferries, airports, and bridges.

Fiscal Policy

The Maldivian government aims to balance its budget through a combination of tourism revenue, import duties, and taxes. Recent efforts focus on increasing tax collection efficiency and attracting foreign investment. The World Bank highlights a Goods and Services Tax (GST) increase in January 2023 as a measure to improve government revenue.

Monetary Policy

The Maldives Monetary Authority (MMA) manages the country's monetary policy. They primarily focus on maintaining price stability through tools like setting the Maldivian rufiyaa's exchange rate against the US dollar.

Trade Agreement

The Maldives benefits from trade agreements with several countries, including India, Sri Lanka, and Pakistan. These agreements reduce barriers to trade and offer preferential treatment for certain goods.

Environmental Regulations

Environmental protection is crucial for the Maldives, a nation heavily reliant on tourism and vulnerable to climate change. Regulations address issues like waste management, coral reef protection, and sustainable fishing practices. The government actively pursues eco-friendly initiatives and promotes responsible tourism.

Tax System in Maldives

Corporate tax rate: Businesses in the Maldives are subject to a 15% corporate tax rate on profits exceeding MVR 500,000 (approximately USD 32,425) per year.
Sales tax (GST): The Maldives uses a Goods and Services Tax (GST) as its primary sales tax.
Payroll tax: A social security system is funded by contributions from both employers and employees. The total contribution is around 7% of the employee's pensionable wage, with the employer typically paying a portion.
Tax deductions and credits:Tax deductions and credits in the Maldives are limited. Some deductions are available for documented business expenses and social security contributions.
Tax compliance: The Maldives Inland Revenue Authority (MIRA) is responsible for tax collection. While efforts are underway to improve tax compliance, challenges remain, particularly in the informal sector.
Tax burden: The overall tax burden for residents and businesses in the Maldives is considered moderate compared to some neighboring countries. The absence of income tax and capital gains tax contributes to this. However, the recent increase in the GST rate (January 2023) might affect the tax burden for consumers.

52 Live Notices for Maldives ....

Showing 1 to 20

Hiring Of A Service Provider To Setup And Operate A Laser/Hologram Wall During The Public Engagement Event To Be Held In Celebration Of The 2025 World Ozone Day
country Maldives
posting date26 Aug 2025
deadline09 Sep 2025
Consultancy Service For Communication And Knowledge Management (National) (Firm) (Sixth Announcement)
country Maldives
posting date26 Aug 2025
deadline17 Sep 2025
International Firm To Design Policy Options For Coral Reef Insurance In Maldives
country Maldives
posting date26 Aug 2025
deadline07 Sep 2025
Carry Out Extensive Repair And Replacement Of Damaged Vehicle Components, C2371 Crane
country Maldives
posting date25 Aug 2025
deadline02 Sep 2025
Consultancy Services For Conducting A Webinar On The Hakathari Program And A Technical Workshop On Energy Efficiency Building Design – Third Round
country Maldives
posting date25 Aug 2025
deadline07 Sep 2025
International Firm To Design Policy Options For Coral Reef Insurance In Maldives
country Maldives
posting date25 Aug 2025
deadline07 Sep 2025
Provision for construction of the first phase of the six-story market building project located east of Rabia Balkhi Market in the first district
country Maldives
posting date25 Aug 2025
deadline13 Sep 2025
Provision for Manpower Assessment of MIB
country Maldives
posting date25 Aug 2025
deadline27 Aug 2025
Provision for Consultancy to prepare Catenate Project Communications Strategy
country Maldives
posting date25 Aug 2025
deadline28 Aug 2025
Provision of Human Resource Management System for the Maldives Monetary Authority
country Maldives
posting date23 Aug 2025
deadline11 Sep 2025
Provision of Event Management Services for the Maldives Financial Expo and the Financial Sector Awards 2025
country Maldives
posting date23 Aug 2025
deadline31 Aug 2025
Provision of Consultancy Services for Reviewing and Piloting of the Green Finance Taxonomy for the Maldives
country Maldives
posting date23 Aug 2025
deadline07 Sep 2025
Hiring Of House Apartment For Mwsc Site Office & Accommodation At Ga. Villingili - Retender
country Maldives
posting date22 Aug 2025
deadline27 Aug 2025
Consultant For The Reviewing And Piloting Of The Green Finance Taxonomy For The Maldives
country Maldives
posting date21 Aug 2025
deadline05 Sep 2025
Mib-Pr-Tn-2025-43 - Manpower Assessment Of Mib
country Maldives
posting date21 Aug 2025
deadline27 Aug 2025
H/Iul/2025/157, Supply Of Firewall Licenses
country Maldives
posting date21 Aug 2025
deadline04 Sep 2025
H/Iul/2025/158, Supply, Installation And Configuration Of Core Network Switches
country Maldives
posting date21 Aug 2025
deadline04 Sep 2025
H/Iul/2025/156, Dell Server Infrastructure Upgrade
country Maldives
posting date21 Aug 2025
deadline04 Sep 2025
H/Iul/2025/147A, Paving Work At Hulhumale Old Powerhouse Cable Yard’S Walkway
country Maldives
posting date21 Aug 2025
deadline05 Sep 2025
Hiring An Event Manager To Conduct The Maldives Financial Expo And The Financial Sector Awards 2025
country Maldives
posting date20 Aug 2025
deadline03 Sep 2025