Maldives Ports Limited (MPL) has announced plans to establish the country’s second free zone at the Addu City Regional Port, reinforcing the government’s strategy to diversify the national economy and strengthen regional logistics. The initiative builds on the pilot free zone launched at Kulhudhuffushi Regional Port in the north, which has been cited as a foundational success.
Free zones are designated areas within ports where goods may be imported, stored, processed or re-exported without incurring customs duties or taxes, unless those goods enter the domestic market. The model is intended to streamline trade, reduce regulatory burdens, and attract investment.
Confirming the next phase of development, Mohamed Rishwan, Chief Executive Officer of MPL, identified Addu City as the selected site. “We are currently developing a specific model for the southern region. Addu City also possesses an existing port infrastructure. This pilot project was initiated in Kulhudhuffushi [City], and we are exceptionally well-prepared for this undertaking,” Rishwan stated in an interview with PSM News.
The initiative forms part of President Dr Mohamed Muizzu’s broader economic programme, which prioritises the establishment of free zones across the country to facilitate re-export opportunities and enhance trade efficiency. The Kulhudhuffushi pilot has already led to operational enhancements, including the creation of bonded zones, bulk cargo storage facilities, and designated areas for domestic cargo vessels. These upgrades are expected to simplify logistics for businesses operating in the region.
To extend the reach of these services, MPL is preparing to expand Kulhudhuffushi port operations to four northern atolls. A stakeholder meeting scheduled for 30 August will outline the scope of this expansion. Approximately 100 participants are expected to attend, including MPL’s business development team, local council representatives, business owners, and officials from the Bank of Maldives (BML).
“The objective of this gathering is to determine the optimal scope for the expansion of the newly introduced services. We anticipate significant collaboration from banking institutions in this regard, particularly concerning the provision of collateral-free loans up to USD 194,575.60 to businesses,” Rishwan stated.
In parallel, MPL has received presidential authorisation to expand its logistics operations across the country. The directive aims to facilitate the transport of containerised cargo from regional commercial ports to outlying atolls. The government has reiterated its commitment to establishing additional free zones in both central and southern regions, complementing the northern pilot. The overarching objective is to enable value addition to imported goods prior to duty imposition, thereby fostering re-export potential and reinforcing the Maldives’ position in regional trade.