President Dr Mohamed Muizzu has urged investors to prepare for new economic opportunities in Addu City and Addu Atoll, announcing that the region will be designated a tax-free zone for three years beginning in January 2027.
At the People’s National Congress campaign event titled 'The Greater Addu', the president outlined his administration’s plan to transform the southern atoll into a hub for small and medium-sized enterprises. He pledged that all legal and administrative groundwork would be completed within the current calendar year.
President Muizzu stressed that the initiative would provide small and medium-sized enterprises with an unparalleled chance for growth. Calling for readiness across all sectors, he extended a broad invitation to investors. “Whether operating within the information technology sector, engaging in diverse economic ventures, or contributing to the service industry, the government is committed to providing comprehensive relief for investors in the small and medium enterprise domain, implementing a framework that suspends land rent, taxes, and all similar fiscal obligations for a duration of three years,” he said.
The initiative reflects broader policy objectives first announced during the inaugural session of Parliament earlier this year, when the president committed to designating specific geographic areas for targeted economic relief to foster small business development. At the centre of the programme is the suspension of direct corporate payments to the state, including land rent and income tax, alongside additional incentives. Seenu Atoll has been selected as the premier zone, with the tax-free jurisdiction encompassing Addu City, in addition to Hulhudhoo and Meedhoo, Addu Atoll. The measures will take effect on 1 January 2027 and remain in force for three years.
The administration expects the relief to catalyse expansion in the small and medium enterprise sector, generating employment and delivering economic prosperity to both the atoll and the wider Maldivian nation. The president also issued a formal invitation to investors, encouraging them to use the reforms to establish Seenu Atoll as the Maldives’ leading information technology hub.
The regional reforms are part of a wider effort to ease systemic challenges faced by the commercial community. State-owned enterprises have recently cleared USD 1 billion in arrears owed to small businesses, reversing longstanding liquidity constraints. Logistical improvements have been introduced as well: the timeframe for clearing air cargo has been extended to 124 hours, while the grace period for storing goods at the port without incurring demurrage fees has been increased to ten days. Businesses are now permitted to settle both demurrage fees and freight charges locally in Maldivian Rufiyaa.
Additional reforms include a 50 percent reduction in municipal regulatory fees imposed on cafés and the complete exemption of quota fees for businesses employing more than twenty expatriates, effective this March. To strengthen commercial resilience, the government has expanded access to international commerce platforms such as PayPal, Alibaba and Swipe, while securing low-interest financing through the SME Digital initiative.