AGP Executive Report

Aasandha Reform: President Dr. Mohamed Muizzu says high-income earners (MVR 65,000+ monthly) will lose full government-funded coverage, with options like co-payment/pre-payment and an annual contribution likely replacing the current model. Tourism Ownership Push: Muizzu also unveiled a citizen-share resort plan—10 resort sites to be selected this week, with construction targeted to start in November and US-dollar dividend payouts to every Maldivian shareholder once resorts operate. State Enterprise Reshuffle: Fenaka Corporation will be dissolved and its utilities moved to STELCO, while RDC is set to be merged into MTCC—both aimed at cutting duplication and costs. Telecom Stakes Debate: Former President Mohamed Nasheed opposed increasing the state’s Dhiraagu stake, calling it wasteful public spending and warning the current privatized structure protects the firm from political interference. Foreign Currency Friction: Muizzu defended online transaction difficulties, saying the government will address them via mandatory conversion of 40% of resort dollar earnings through local banks. Sanctions & Trade Scrutiny: Government is investigating allegations that restricted goods linked to Russia moved through Maldives cargo operations, following a Wall Street Journal report. Health Tech Milestone: ADK Hospital completed the Maldives’ first robotic-assisted surgeries—two robotic knee replacements—boosting local access to specialized care. Banking & Conservation: Bank of Maldives set a Guinness World Record with 314 simultaneous snorkelers at Niva Kurumba, tied to its ENV POS environmental funding. Business & Trade Finance: Maldives and ITFC signed a five-year framework to mobilize up to USD 1.5 billion for trade financing, including support for SMEs via local financial institutions. Education Platform: Syllabi soft-launched Syllabi Exam Prep for O-Level and A-Level practice, free until Sept 15, with schools already using the platform.

Tourism & State Wealth: President Muizzu unveiled a national shareholding model for citizen-share resorts, with 10 new resorts targeted for development starting in November and dividend income in US dollars for all Maldivians once operational. Telecom & Utilities: The government says it will buy back Dhiraagu shares to raise state control to 51%, while also moving to dissolve Fenaka and merge RDC into MTCC to cut duplication and improve delivery. Finance & Consumer Credit: Maldives Monetary Authority data shows consumer/personal loans rising to MVR 9.2bn as of July, with total private-sector credit up to MVR 41.34bn. Business & Regulation: ABTA and ECTAA urged Maldives to pause new GST destination-principle rules for foreign tour operators, warning overseas bookings sold in advance may be hit from 1 October. Banking & Conservation: Bank of Maldives set a Guinness record with 314 people snorkeling simultaneously, tied to its reef-protection push. Health & Tech: ADK Hospital completed the Maldives’ first robotic-assisted knee replacement surgeries, while State Pharma installed a digital stock system to show pharmacy availability in real time. Capital Markets: Maldives Stock Exchange and Securities Depository announced a 2026-2030 plan to boost SME funding, including a Viyana MSME Growth Board and an anchor tourism listing push by 2027.

Tourism Capacity Boost: Maldives expanded tourism accommodation by 1,069 beds since end-2025 to 68,544 beds as of Sept 5, with resorts still leading (45,891 beds) and about 1.4 million visitors welcomed so far this year. Trade Finance Push: The Maldives government signed a five-year framework with ITFC to mobilise up to USD 1.5 billion (2026-2031) for import/export and trade financing, including support via Maldivian financial institutions for SMEs. Ocean Literacy Partnerships: Dhiraagu teamed up with SEED and SEAD to back ocean literacy for children and youth, using connectivity support and field-based learning across Hulhumalé and other islands. Health Supply Digitisation: State Pharma installed a digital stock system to show real-time pharmacy availability nationwide, with public access planned within two months and a 24-hour hotline (1505) for medicine queries. Consumer Credit Rising: Maldives Monetary Authority data shows personal loans to private individuals at MVR 9.20bn (up ~2% from June), alongside overall private-sector credit rising to MVR 41.34bn. Tourism GST Pressure: European travel agent and tour operator groups ABTA and ECTAA urged the Maldives to pause new GST destination rules for foreign booking platforms, citing short preparation time ahead of Oct 1. Public Safety & Integrity: Police Service Day remarks from Home Minister Ali Ihusaan stressed “no room for corruption or abuse of authority” and said swift action is taken against misconduct. Disaster Management HQ Land: NDMA received a permanent 13,574 sq ft land plot in Hulhumalé Phase II for its headquarters and emergency facilities. Capital Markets Plan: Maldives Stock Exchange and Securities Depository unveiled a 2026-2030 strategic plan to help SMEs raise funds and expand debt market access, including an anchor tourism listing target by 2027.

Tourism Capacity Boost: Maldives added 1,069 beds since end-2025, taking total accommodation capacity to 68,544 beds as of Sept 5, with resorts still the biggest share (45,891 beds) and guesthouses rising to 17,268. Consumer Credit Watch: Maldives Monetary Authority data shows personal loans climbed to MVR 9.20bn by July (up from MVR 9.02bn in June), alongside overall private-sector credit reaching MVR 41.34bn. Medicine Supply Upgrade: State Pharma installed a digital stock system to show pharmacy availability in real time, with public access planned within two months, plus a 24-hour hotline (1505). Ocean Literacy Partnerships: Dhiraagu teamed up with SEED and SEAD to expand ocean literacy for children and youth via connectivity support and hands-on eco-guardian activities across Hulhumalé and islands. Disaster Management HQ Move: NDMA secured a permanent 13,574 sq ft land plot in Hulhumalé Phase II for its headquarters and emergency facilities. Capital Markets Plan: MSE and MSD unveiled a 2026-2030 strategy to strengthen market infrastructure, support SMEs, and target an anchor tourism listing by 2027. Thilafushi Port Shift: Maldives Ports Limited signed an MoU with China Harbour Engineering Company for Phase 1 of Thilafushi Port, moving away from earlier joint development plans with India.

Thilafushi Port: Maldives Ports Limited has signed an MoU with China Harbour Engineering Company for Phase 1 of the Thilafushi Port, ending an earlier plan with India and handing key design and quay-wall work to CHEC—an issue now drawing strategic concern in the region. Capital Markets: The Maldives Stock Exchange and Securities Depository unveiled a 2026-2030 strategic plan to strengthen market infrastructure, help SMEs raise funds, and push for an anchor tourism listing by 2027, alongside updates to debt listing rules. Fisheries Finance: The fisheries ministry says MVR 14.5m has been disbursed in loans to 113 fishermen via the Masveriya Portal, supporting equipment, vessel, education and even guesthouse-related financing. Tourism & Aviation: A deal at the Farnborough Airshow links Island Aviation Services (Maldivian) with De Havilland Canada for Twin Otter aircraft, while separate coverage highlights the Maldives’ ongoing reliance on seaplane connectivity. Hospitality Appointments: ananea Madivaru Maldives appointed Pierre Leif Edlund as General Manager, continuing leadership reshuffles in the resort sector.

Financial Inclusion Push: UNDP and Visa launched a pilot in Sri Lanka’s Hope Estate (Hewaheta) to support 50 young agri-producers—mostly women—with financial literacy, access to formal services, and skills for digital payments. Fisheries Credit via Portal: Maldives’ Fisheries Ministry says MVR 14.5 million in loans has been disbursed to 113 fishermen through the Masveriya Portal, enabling remote applications for equipment, vessel, housing and education financing. Central Bank Tightens Fintech Rules: Maldives Monetary Authority raised minimum capital requirements for payment service providers, with electronic money issuance, remittance and transaction services now requiring up to MVR 2.0m (and higher for some services) to strengthen system resilience. Tax Collection Gains: MIRA recovered MVR 3.5 billion in outstanding revenue in the first half of 2026, with total arrears at MVR 14.5 billion as of June. Infrastructure & Connectivity: India’s MEA highlighted progress on the Greater Male Connectivity Project, noting the Male–Vilimael bridge segment completion and expected overall completion by 2026. Port Deal Watch: Maldives signed an MoU with China Harbour Engineering Company for Phase 1 of Thilafushi Port, replacing a prior India-linked plan and raising strategic concerns. Health Supply Upgrade: ADB-backed project broke ground on a Central Cold Chain Facility in Hulhumalé to improve safe storage of vaccines and temperature-sensitive medical supplies. AI Disruption: A major outage hit major AI platforms globally, including services used in the Maldives.

Thilafushi Port Deal: Maldives Ports Limited signed an MoU with China Harbour Engineering Company for Phase 1 of Thilafushi Port, raising strategic concerns over China’s growing footprint in the region. Fisheries Finance: The Fisheries Ministry says MVR 14.5m in loans was disbursed to 113 fishermen in four months via the Masveriya Portal, covering equipment, vessel needs, home upgrades and education. Tax Recovery: MIRA recovered MVR 3.5bn in outstanding revenue in the first six months, with total arrears at MVR 14.5bn by end-June, including large resort land rent dues. Payments Regulation: The Maldives Monetary Authority increased minimum capital requirements for payment service providers, aiming to strengthen financial resilience and public confidence. Cold Chain Boost: The Health Ministry laid the foundation stone for an ADB-funded Central Cold Chain Facility in Hulhumalé to improve safe storage of vaccines and other temperature-sensitive supplies. State Sector Politics: STELCO suspended an HR employee after live TV remarks linked staff party sign-ups to the ruling PNC, triggering public backlash. Leadership Appointment: Dr. Ahmed Riyaz was appointed Chief Statistician of the Maldives Bureau of Statistics for a five-year term. Travel & Tourism Context: A UK luxury travel firm Wayfairer Travel suspended operations, warning customers not to travel, including trips to the Maldives.

Financial Sector Watch: The Maldives Monetary Authority raised minimum capital requirements for payment service providers, lifting several PSP thresholds to as high as MVR 2 million to strengthen resilience and public confidence. Tax & Revenue: MIRA recovered MVR 3.5 billion in outstanding revenue in the first six months, with total unpaid taxes at MVR 14.5 billion by end-June, and flagged follow-ups on foreign parties selling tourist beds. Enforcement & Compliance: A STELCO HR employee was suspended after remarks on live TV implied staff had to submit ruling party forms to join, triggering public backlash. Tourism & Markets: Yandex Ads and MATI/Visit Maldives shared research showing Russian arrivals up 18% in H1 2026 and bookings rising sharply, with 72% of Russian visitors coming for the first time. Security & Scams: Police reported about MVR 2 million lost to scams in August, with currency exchange fraud a major driver; authorities urged using licensed providers. Training & Cooperation: CBI ran an economic offence investigation course for 30 officers from 13 ITEC countries including Maldives. Hospitality Recognition: Alila Kothaifaru Maldives said its Umami restaurant won Best Restaurant at the Travel Trade Maldives Awards 2026.

Payment Rules Update: The Maldives Monetary Authority raised minimum capital requirements for payment service providers, lifting several categories to as high as MVR 2m and aiming to keep PSPs financially resilient. Tax Recovery Push: MIRA recovered MVR 3.5b in outstanding revenue in the first six months, with total arrears at MVR 14.5b by end-June. Health Infrastructure: The Health Ministry broke ground on an ADB-funded Central Cold Chain Facility in Hulhumalé to improve safe storage of vaccines and temperature-sensitive supplies. Anti-Scam Snapshot: Police reported about MVR 2m lost to scams in August, with currency exchange fraud a major contributor; authorities also highlighted recovery of MVR 1.13m. Tourism & Markets: Yandex Ads research says Russia is now the Maldives’ second-largest source market by volume, with bookings rising faster than search interest—fueling a push for better conversion. Sanctions Risk: A Wall Street Journal investigation says the Maldives is being used as a transit point for restricted goods headed to Russia, including dual-use items. Fraud Fallout: Three directors tied to a £70m eco-Ponzi scheme were jailed after investors lost savings in the “tree-planting” scam. Business & Policy: MIRA says a new GST amendment will bring foreign tour operators into the GST system, broadening the tax base. Regional Finance: Maldives President Muizzu praised the India-backed Thilamale Bridge as a symbol of Maldives-India ties, despite his earlier “India Out” stance.

Sanctions & Trade: The Maldives is being flagged as a transit hub for Russia-linked sanctions evasion, with restricted dual-use goods reportedly routed through Velana International Airport and moved on Aeroflot flights to Moscow. Tourism Demand: Yandex Ads research says Russian demand is becoming more year-round, with Russian arrivals up 18% in H1 2026 and hotel bookings via Yandex Travel rising 233%, pushing Maldives operators to target conversion, not just searches. Tax & Tourism Services: MIRA says a new GST amendment will bring foreign tour operators and overseas tourism businesses into the GST system, expanding the tax base via a registration mechanism for eligible entities. Foreign Exchange Crackdown: Police launched a hotline task force to tip off on illegal foreign currency dealers, warning against unlicensed dollar trading. Scam Losses: Anti-Scam Center data shows about MVR 2m lost to scams in August, with currency exchange fraud a major driver. Infrastructure & Diplomacy: President Muizzu praised India-backed Thilamale Bridge as a symbol of Maldives-India ties, while also reiterating the project’s long-term connectivity role. Halal Economy: Muizzu met ICCD to expand halal business and halal tourism cooperation, including investment and capacity-building. Hospitality Awards: Kuredhivaru won two TTM Awards 2026 (Best Beach Villa Resort and Best Culinary Resort). Travel Policy Update: Maldives nationals will get 30-day visa-free entry to Thailand from Aug 15, after Thailand extended the permitted stay. Corporate Appointments: Abdulla Faiz was appointed chairman of MIFCO.

Sanctions & Trade: A Wall Street Journal investigation says Maldives-based intermediaries helped route hundreds of millions of dollars in restricted Western goods to Russia via Malé airport, with cargo reportedly kept in transit and moved on Aeroflot flights. Fisheries Pressure: Former Finance Minister Ibrahim Ameer told an MDP rally that fishermen are catching less fish under the current administration, arguing households and businesses are worse off than in prior MDP years. India Ties & Infrastructure: President Mohamed Muizzu praised the India-backed Thilamale Bridge under the Greater Male Connectivity Project, calling it a symbol of “close, enduring” Maldives-India relations. Halal Tourism Push: Muizzu met ICCD officials to expand investment and cooperation in halal business and tourism, including capacity-building and new halal tourism opportunities. GST for Foreign Tour Operators: MIRA says a ratified GST amendment will bring eligible foreign tour operators and overseas bed sellers into the GST system, requiring Maldives-based registered businesses to submit foreign party details. FX Crackdown: Police launched a hotline and investigations into unlicensed foreign currency trading, including arrests of six foreign nationals linked to a large-scale forex network. Tourism Policy & Currency Rules: MDP warned resorts may face pressure from the 40% foreign currency conversion requirement, calling for policy reversal unless economic and fiscal measures change. Business Appointments: Abdulla Faiz was appointed Chairman of state-owned MIFCO. Conservation & Value: Kandooma Maldives marked Manta Month, citing research valuing manta ray tourism to the Maldives’ economy. Travel Tech: UPI transaction value in India rose 20% in August to Rs 29.82 lakh crore, with Maldives listed among UPI-connected countries.

Halal Tourism Push: President Dr. Mohamed Muizzu met the Islamic Chamber of Commerce and Development (ICCD) to discuss expanding halal tourism, with plans for capacity building, investment and targeted island initiatives. Forex Crackdown: Maldives Police launched a hotline and investigations targeting illegal foreign exchange dealers, including a probe linked to Naid Investments and the freezing of its accounts; six foreign nationals were also detained over alleged unauthorised forex trading totaling MVR 54.4m and USD 1.63m. Tourism Tax Compliance: MIRA instructed TGST-registered tourism businesses to report foreign parties selling Maldives tourism products, as inbound booking services are now treated as services provided within the Maldives under GST amendments. State Appointments: Abdulla Faiz was appointed Chairman of MIFCO, bringing 30+ years of business experience. Tourism Industry Awards: MIB extended the Guesthouse Awards 2026 deadline to Sept 14, while Kandooma Maldives marked Manta Month with conservation messaging tied to manta tourism’s economic value. Regional Trade & Travel: UPI is now accepted in 11 countries including Maldives, and Thailand’s visa-free stay for many nationalities (including Indians) drops from 60 to 30 days from Sept 15.

Forex crackdown: Maldives Police set up a task force to tip off on unlicensed foreign exchange dealers, warning that black-market dollar rates shared or promoted digitally are offences. Enforcement escalates: Police froze Naid Investment accounts and launched a special search, while a joint police-immigration operation detained six foreign nationals over alleged unauthorised forex trading, with transactions reportedly totalling MVR 54.4m and USD 1.63m. FX policy pressure: The MDP called for reversal of the 40% foreign-currency conversion requirement for resorts, warning it could squeeze operators and push action against President Dr. Muizzu. Tourism taxation compliance: MIRA asked TGST-registered businesses to report foreign parties selling tourist beds, as GST rules now require foreign tour operators/OTAs without a Maldives permanent establishment to register. State business leadership: Abdulla Faiz was appointed Chairman of MIFCO by the Privatisation and Corporatisation Board. Infrastructure update: AFCONS says the Thilamalé Bridge is designed for about 120 years, with major maintenance expected roughly once every 20 years. Hospitality awards: Maldives Islamic Bank extended MIB Guesthouse Awards 2026 applications to Sept 14, and TTM Awards 2026 recognised The Halcyon Private Isles Maldives (Best Water Villa Resort) and The Standard, Maldives (Best Beach Resort). Tourism trade push: Visit Maldives is at ITB India 2026 (Sept 1-3) engaging Indian travel trade, with co-exhibitors from tourism and aviation. Regional travel policy watch: Thailand confirms visa-free stays will drop from 60 to 30 days for 60 countries from Sept 15, 2026.

Tourism Awards: The Halcyon Private Isles Maldives (Autograph Collection) won Best Water Villa Resort at the Travel Trade Maldives (TTM) Awards 2026, while The Standard, Maldives (Hyatt) took Best Beach Resort—both recognised at CROSSROADS Maldives on Aug 27. Travel Trade: ITB India 2026 opened in Mumbai for three days, expected to draw 3,000+ industry professionals and includes Visit Maldives Corporation among participants. FX Crackdown: Maldives Police froze Naid Investment Pvt Ltd accounts over alleged unlicensed forex trading, and detained six expatriates tied to an illegal currency network reportedly moving MVR 54.4m and USD 1.63m. FX Rules & Tourism Impact: President Muizzu ratified Foreign Exchange Act amendments tightening MMA-set exchange bands and licensing; he reiterated resorts must keep paying staff in USD despite the 40% conversion requirement. Tax & GST: Muizzu ratified the 4th Amendment to the Tax Administration Act and GST changes requiring GST collection on services by foreign tour operators and travel agents, including offshore booking platforms. Energy & Resources: Cabinet moved to create a dedicated legal framework for oil, gas, minerals and other non-living marine resources in Maldives maritime zones, with a special bill on permits, ownership and regulation. Islamic Finance: Maldives Islamic Bank won a WOMANi Leadership Award for Career Advancement 2026, highlighting women’s leadership in Islamic banking.

Foreign Exchange Crackdown: Police and Immigration detained six expats over an alleged large-scale forex network, with authorities saying MVR 54.4m and USD 1.63m moved through personal accounts over three years. Tourism FX Rules: President Dr. Mohamed Muizzu ratified amendments to the Foreign Exchange Bill, requiring resorts to convert 40% of USD earnings via local banks—while insisting resort staff salaries can still be paid in USD. Political Pushback: The MDP approved “direct political action” against the 40% resort forex exchange requirement, calling for dialogue and urging Muizzu to resign. Tax Overhaul: Muizzu also ratified the 4th Amendment to the Tax Administration Act, strengthening MIRA powers for audits, investigations, and tax recovery. GST on Tourism Services: GST amendments now require foreign tour operators and travel agents to collect GST for services supplied in the Maldives, including via offshore booking platforms. Energy & Resources Policy: Cabinet moved to set up a legal framework for oil, gas, and mineral exploration and extraction in Maldives maritime zones. Banking Recognition & Appointments: Maldives Islamic Bank won an international award for advancing women in Islamic finance; Bank of Maldives executive Aishath Zamra Zahir was appointed MD of Addu City Hankede Development Corp. Corporate/Travel: Andrew’s Travels promoted Maldives and Sri Lanka at Vietnam’s ITE HCMC 2026, highlighting new direct flights.

Foreign Exchange Bill: President Dr. Mohamed Muizzu ratified the Foreign Exchange Bill, banning publication of foreign-currency rates above the MMA reference price and requiring resorts to convert 40% of their USD income through the banking system, with fines for individuals (MVR 25,000–500,000) and businesses (MVR 100,000–5m) and potential criminal prosecution. Tourism Sector Impact: The 40% rule has sparked pushback from MATI and opposition figures, including former President Mohamed Nasheed, who warned it could bankrupt resorts and disrupt jobs tied to tourism. Fisheries Pricing: MIFCO raised its skipjack tuna purchase price by MVR 1 to MVR 21/kg, effective immediately across multiple fisheries complexes and harbours, citing international market conditions and aiming to benefit fishermen. Infrastructure & Connectivity: India’s High Commissioner said the Thilamalé Bridge (GMCP) is nearing completion, praising Maldives-India cooperation; President Muizzu called it a landmark project and reiterated efforts to expedite major infrastructure. Corporate Appointments: Addu City Hankede Development Corporation appointed Aishath Zamra Zahir as MD, tasked with developing Hankede under an integrated tourism model; MIC Group also promoted Ahmed Shifan to Group Director of Procurement. Regional Business & Policy: Maldives President Muizzu sent Malaysia Independence Day greetings, highlighting plans for expanded economic engagement with Malaysia. Insurance Regulation: MMA published two insurance regulations for public comment and finalised them, including a required MVR 2m security deposit for insurers operating in the Maldives.