The island nation of Maldives is looking to diversify its economy and has signed an agreement to develop a $8.8 billion crypto and blockchain hub in Malé. Dubai based MBS Global Investments and another family office that manages assets for Qatari royal Sheikh Nayef bin Eid Al Thani have come to the rescue of the archipelago which mainly depends on tourism and fishing.
According to a report by the Financial Times, the agreement was signed on May 4 and will be rolled out over the next 5 years. The project hopes to make Maldives a new blockchain and Web3 hub attracting alternate investments and pivoting towards digital finance. Interestingly, the said investment will exceed the country’s current GDP which stands at $7 billion.
The project outlines the development of an International Financial Centre spanning 830,000 square metres and is said to house over 65000 people. It will also generate 16,000 jobs with a potential to employ 3% of the population.
Currently, the country has no crypto footprint yet but the government wants to leverage its unique geographical location and progressive regulatory framework to attract crypto companies and investors. The diversification will also help Maldives secure investments to finance its over $1.5 billion debt that includes $600-700 million due this year and $500 million sukuk, a form of debt that follows Islamic strictures against interest, the FT report stated.
