Maldives to Build $8.8 Billion Blockchain Hub, Aims to Triple GDP
2min read A Dubai family office managing assets for Qatari royal Sheikh Nayef bin Eid Al Thani will finance an $8.8 billion blockchain and digital assets project in the Maldives. The deal, led by MBS Global Investments, aims to transform the island nation into a blockchain hub to attract crypto investors and diversify its economy.
Ask Aime: How can the Maldives attract crypto investors with its blockchain project?
The investment will roll out over five years and exceeds the country’s entire GDP, which stood at roughly $7 billion in 2023. This makes it a mega project for the tourism-dependent nation. The Maldives currently has little to no crypto industry presence. This project represents a major pivot toward digital finance to ease economic pressures as the nation grapples with debt.
The Indian Ocean nation faces $600-$700 million in debt due this year. Another $1 billion is due in 2026, adding urgency to the economic diversification effort. The plan includes building the Maldives International Financial Center. This facility will span 830,000 square meters in the capital city of Male to accommodate 6,500 people.
The blockchain hub is expected to generate 16,000 jobs. This could potentially employ around 3% of the national population, making a major impact on the local economy. MBS Global Investments will finance the project through a consortium created from its network of family offices and high-net-worth individuals. It has already secured $4 to $5 billion of the total funding.
Ask Aime: "Is the Maldives on the brink of becoming a blockchain powerhouse?"
The firm’s current portfolio spans various sectors. These include fintech, real estate, construction, and investment firms. In July last year, it invested in digital asset management firm Varys Capital, which focuses on early-stage crypto projects. “Traditionally conservative family offices are broadening their mandates to gain portfolio exposure to blockchain offerings,” Nadeem Hussain, MBS Investments CEO, noted at the time of that investment.
The company’s portfolio also includes a special economic zone on an island off the coast of Malaysian Borneo. Last month, it met with officials from Brunei to explore potential cooperation. The Maldives hub will operate as a “financial freezone for blockchain and digital assets” to attract investors. While details remain limited, the plan includes offering 100% ownership for foreign firms and special tax regulations.
A seamless registration and licensing process with banking services is expected to sweeten the deal for cryptocurrency firms. These incentives may appeal to crypto investors facing tax uncertainty in the US and other regions. The Maldives aims to triple its GDP within four years through blockchain investment. However, it will face competition from regional players like Singapore and China Hong Kong, which already have established Web3 ecosystems.
The hub will mirror Dubai’s own transformation from tourism to digital assets over the last four years. Dubai has embraced cryptocurrency, with recent news that Trump Towers Dubai will accept crypto payments for property sales. This project comes as other Gulf investors are expanding their presence in the digital asset space. Recently, Ripple secured full regulatory approval from the Dubai Financial Services Authority to offer blockchain-powered payment solutions in the region.
The Maldives’ blockchain hub represents its biggest statement of intent to diversify beyond tourism and fisheries. Beyond economic diversification, the country hopes to use revenue from the hub to offset its national debt. The project is a significant step for the Maldives, which has traditionally relied heavily on tourism. By pivoting towards digital finance, the nation aims to create a more resilient and diversified economy, reducing its dependence on a single sector.
