The government has decided to designate the fuel storage island of Kaafu Funadhoo as a special economic zone (SEZ) to be developed as an international finance center after relocating refuelling services.
Speaking about the project during a ceremony held on Thursday night to launch the third phase of the Velana International Airport (VIA) development project, President Dr. Mohamed Muizzu said changing Funadhoo to a financial center was also important for the airport development.
"After opening up the opportunity for it, developing Funadhoo or that location as an international financial center is how it's included in the vision we just saw," the President said.
Efforts to transform Funadhoo are currently underway and discussions will take place at the cabinet next Sunday about creating a company for developing the international financial center, the President said.
"God willing, deliberations will conclude at the cabinet meeting next Sunday to establish a new authority under the name of 'Maldives International Financial Services Authority.' The Maldives International Financial Services Authority will become the first step on the path to establishing international financial centers in the country," he said.
In addition, the 'Maldives Industrial Freezone Company' that the government is currently working on setting up will develop an SEZ re-export zone in Thilafushi and other reclaimed land in the area after awarding plots for housing and other purposes, he said.
"By making use of the opportunities that have opened up for us, it will be made a re-exporting SEZ zone," President Muizzu said.
About 100 hectares would be set aside for the freezone company, which would seek to manufacture construction equipment as well as raw materials needed domestically and foods that can be grown or processed in the country, according to the President.
The two projects represent the first SEZs announced by the government. SEZs are areas with special incentives and a minimum investment amount set by the government.
The third phase of the VIA development project announced on Thursday night involves building a terminal with the capacity to serve 25 million passengers. The entire project would take 10 years to complete, President Muizzu said. But work on the project will proceed alongside the ongoing airport expansion work, he added.
"God willing, through the efforts of all of us, we will open up the main gateway of the Maldivian economy by at least threefold from the work that is ongoing now," the President said.
