The Maldives Industrial Development Free Zone (MIDFZ) has awarded the contract to develop a port in Ihavandhippolhu to Singapore's Capital Asia Investment (CAI).

The agreement was signed by the Managing Director of MIDFZ Shimad Ibrahim and the Chief Commercial Office of CAI Tan Kun Chiao George.

Under the agreement, the port will be developed along with services. However, the Economic Ministry did not disclose any further details about the project.

The Economic Ministry said the agreement was signed to carry out the Maldives Economic Gateway Project in line with President Dr. Mohamed Muizzu's vision to expand the country's economy.

According to the ministry, the agreement will help develop the scope and phases of the Maldives Economic Gateway Project as per the plan to transform the Ihavandhippolhu region into a trade and logistics hub.

MIDFZ was established in January with the involvement of five companies to lead the implementation of projects needed to strengthen Maldives' economic security.

The company also leads initiatives to ensure food security and storage of essential commodities.

Licensed to do fund management in Singapore, CAI manages a total of USD 1.3 billion in assets across diverse portfolios such as infrastructure, fintech, IT, renewable energy and hospitality.

With its extensive experience in equity transactions, private placements and strategic investments, the company has the ability to work on transformative projects.