Maldives Ports Limited (MPL) has confirmed plans to set up the nation’s second free zone in Addu City, a move aimed at expanding trade opportunities and strengthening the country’s economic base.
MPL’s Chief Executive Officer, Mohamed Rishwan, revealed the development during an interview with state media, noting that free zones form a central pillar of the government’s wider strategy to revitalise the economy.
Expansion Beyond Kulhudhuffushi
The initiative builds on the recently established bonded zone at Kulhudhuffushi Regional Port, where goods can now be stored duty-free until they enter the domestic market. The free zone in Addu City will follow a similar model, further boosting regional logistics and re-export potential.
According to Rishwan, the introduction of bonded facilities in Kulhudhuffushi has already broadened port operations. Bulk cargo storage has been added, while part of the harbour is now designated for domestic cargo handling.
MPL is also preparing to extend services from Kulhudhuffushi Port to four northern atolls. A major stakeholder meeting involving more than 100 participants—including councils, businesses, and banks—is scheduled for 30 August to discuss the expansion and explore financing opportunities. Rishwan highlighted that financial institutions, including the Bank of Maldives, are expected to provide loans of up to MVR 3 million to support businesses.
The CEO further confirmed that President Dr Mohamed Muizzu has granted approval for MPL to expand logistics services across the country. Under this plan, containers arriving at regional commercial ports will be transported directly to outer atolls, streamlining supply chains and reducing costs.
Beyond the northern initiatives, the government has also announced plans for additional free zones in the central and southern Maldives. These zones are expected to promote re-export activities by offering duty-free storage of imported goods, strengthening the Maldives’ position as a regional trading hub.
Rishwan emphasised that these efforts reflect the government’s broader commitment to economic diversification and regional development, ensuring that trading opportunities are not confined to the capital region alone.
