The Addu Regional Free Zone has been officially inaugurated, with applications now open for businesses seeking to operate in the zone.
The inauguration ceremony was held at Addu High School by Minister of Economic Development, Transport and Trade Mohamed Saeed and Minister of Homeland Security, Labour and Technology Ali Ihusaan.
Work on establishing the free zone began earlier this year through collaboration between MPL, the Economic Ministry, Maldives Customs Service, and other government agencies. About 1.7 hectares of land has been allocated from the Hithadhoo Port area, with wider development plans underway. An area of 20,000 square feet has been prepared for the development of freezone activities. A duty-free cargo and storage zone has been designated at Hithadhoo Regional Port under the project.
Speaking at the inauguration ceremony, Maldives Ports Limited (MPL)‘s Deputy Managing Director Mohamed Lam’aan said the project aligns with President Dr Mohamed Muizzu’s economic vision and aims to boost the southern economy, as well as the national economy as a whole. He emphasised the importance of business community participation in making the zone successful.
The Economic Minister said Addu’s development will be shaped based on the needs and views of local businesspeople. He said the government plans to offer special concessions and incentives from 2027 to 2029 to attract investment into the zone, adding that efforts are already underway to develop Addu City’s business sector.
The minister said free zones are a relatively new concept in the Maldives, but are widely used in industrialised and neighbouring countries to boost economic growth. The free zone in Addu City is expected to bring significant benefits, he said.
The government aims to create an investment-friendly legal framework to attract both local and foreign investors. The minister stressed that cooperation between the government, businesses and stakeholders is necessary for the project’s success.
The initiative was first announced by President Mohamed Muizzu during the opening of Parliament this year as part of a wider policy to establish investment zones for SMEs across the country. The long-term goal is to help transform Addu into a major business and IT hub in the Maldives, the president had said.
The free zone will support activities such as duty-free storage, vehicle refurbishment, manufacturing, bonded warehousing and re-export services. The land allocation rates for businesses operating in the zone have already been set.
Businesses are invited to submit proposals from 13 May to 11 June for related activities in the Addu Regional Free Zone, including cargo storage. Proposals must include details such as land requirements, activities and lease requirements.