AGP Executive Report

Tourism & Culture: Ifuru Island Maldives will host the Ripple & Friends music festival from 17–21 September, blending live performances, art, wellness, dining and unplugged sessions with a pace designed around island life. Resort & Sustainability: Le Méridien Maldives partnered with Patémar on ocean-conscious resortwear made from upcycled landfill and ocean plastic, while highlighting the resort’s marine conservation and waste-reduction efforts. Banking Access: Maldives Islamic Bank expanded 24-hour ATM services to Kendhoo, Goidhoo and Thulhaadhoo in Baa Atoll and opened a full branch in Eydhafushi, improving round-the-clock deposits and withdrawals in MVR and US dollars. Youth Finance: Bank of Maldives and SME Digital disbursed over MVR 300m to more than 3,000 young entrepreneurs under the Youth Entrepreneurship Financing programme, offering collateral-free funding up to about USD 9,727. Trade & Compliance: Banks signed an agreement with Maldives Customs to verify TT documents for imports and exports, aiming to curb counterfeit transfers and tighten oversight of trade-linked payments. Tourism Revenue Watch: MMA data shows tourism tax and fee inflows up 6% in H1 2026, but reserves fell to USD 686.8m by June as debt servicing drew down foreign currency. Forex Rules Clarified: MMA says the new 40% foreign-exchange deposit requirement does not legally stop resorts from paying employee salaries in US dollars, while pension contributions must remain in rufiyaa even for dollar-paid salaries. Port Procurement: Maldives Ports Limited invited bids for facilities for the Thilafushi Port Development Project, with applications closing 10 September. Diesel for Fishing: Hawks began selling diesel to fishing vessels at MVR 17 per litre from Thursday, with purchases limited to registered fisheries vessels.

Forex & Salaries: The Maldives Monetary Authority says resorts and other businesses face no legal barrier to keep paying employee salaries in U.S. Dollars, even after Parliament’s 40% foreign-exchange deposit rule—while the longer-term goal remains shifting more domestic transactions to rufiyaa. Pension Rules: The Maldives Pension Administration Office clarifies pension contributions must be paid in rufiyaa even when salaries are in USD, with basic pay converted first and contributions calculated in local currency. Tourism Tax: Parliament approved extending Tourism Goods and Services Tax to foreign booking platforms and tour operators, making overseas sellers register with MIRA and pay TGST based on where the tourism service is supplied. Port Procurement: Maldives Ports Limited invites bids for facilities for the Thilafushi Port Development Project, covering operations, cargo handling, cold storage and bonded warehousing; applications close 10 September. Banking Access: Maldives Islamic Bank expands 24-hour ATMs to three Baa Atoll islands and opens a full branch in Eydhafushi. Youth Finance: Bank of Maldives and SME Digital report over 3,000 young entrepreneurs receiving more than USD 19.5m in financing under the first phase of a youth entrepreneurship programme. Trade Controls: Banks and Maldives Customs sign an agreement to verify telegraphic transfers for imports/exports and curb counterfeit TT documents. Diesel for Fisheries: Hawks Private Limited starts selling diesel to fishing vessels at MVR 17 per litre, with sales limited to registered fisheries vessels. Tourism Revenue: MMA data shows tourism-related tax revenue up 6% in the first half of 2026, but reserves fell by mid-year as debt servicing rose sharply. Crime & Courts: Two people were jailed after confessing to the oil attack on opposition activist Mandhy Zubair, while three men were convicted for running large-scale explicit Telegram channels for profit.

Tourism & Connectivity: Luxury Escapes says its Melbourne–Malé direct flights will run year-round in 2027 after a seasonal May–November launch hit ~90% load factors and lifted Maldives package bookings by 65%, pointing to growing demand from families and multigenerational travellers. Banking Access: Maldives Islamic Bank expanded 24-hour ATM services to three Baa Atoll islands (Kendhoo, Goidhoo, Thulhaadhoo) and opened a full branch in Eydhafushi, aiming to boost round-the-clock deposit and withdrawal access in both MVR and USD. Trade Finance Controls: All banks signed an agreement with Maldives Customs to verify counterfeit TT transfers and align trade-related payments with import/export documentation, coordinated with the MMA’s Financial Intelligence Unit. Youth Enterprise Push: Bank of Maldives and SME Digital disbursed over MVR 300m to 3,000+ young entrepreneurs under a collateral-free youth financing phase, with mentorship and training support. Forex Policy Fallout: President Muizzu defended foreign exchange reforms as research-led and consultative, while TEAM warned tourism workers may lose income if resort salaries shift to Rufiyaa; MATATO also criticised GST changes targeting offshore booking platforms for lack of consultation and potential harm to local agents. Infrastructure Update: Muizzu reiterated the Thilamale’ Bridge project (Male’–Villimalé–Thilafushi–Gulhifalhu) should open to the public within a year. Energy for Fisheries: Hawks began selling diesel to fishing vessels at MVR 17 per litre nationwide at designated stations, requiring valid vessel registration. Leadership & Institutions: Abdulla Yaasir was appointed Managing Director of Visit Maldives Corporation after Ibrahim Shiuree’s resignation.

Banking Access: Maldives Islamic Bank (MIB) rolled out 24-hour ATMs in three Baa Atoll islands—Kendhoo, Goidhoo and Thulhaadhoo—and also opened a full branch in Eydhafushi, replacing its sales centre and expanding services including account opening and financing. Foreign Exchange Crackdown: Banks and Customs signed an agreement to verify counterfeit TT transfers, with the MMA coordinating information exchange via the FIU; meanwhile President Muizzu defended the government’s dollar reforms as research-led, and Parliament passed measures including a ban on black-market dollar rates and a requirement for resorts to deposit 40% of USD earnings in local banks. Tourism Trade & Policy: Travel Trade Maldives (TTM) opened in Malé with 130+ resorts and 250+ travel operators/agents, while MATATO warned that proposed GST on offshore booking platforms and foreign tour operators could disrupt the international booking chain and hurt local agents; TEAM also criticised the 40% USD rule for squeezing workers’ incomes. Youth Enterprise Funding: Bank of Maldives and SME Digital disbursed over USD 19.5m to 3,000+ young entrepreneurs under a collateral-free youth financing scheme, with mentorship and training support. Fuel for Fisheries: Hawks began selling diesel to fishing vessels at MVR 17 per litre, available only to registered fisheries vessels at designated stations nationwide. Women’s Opportunities: First Lady Sajidha urged broader women’s participation in national development, highlighting entrepreneurship through the “Viluntheri Kanbalun” programme. Regional Links: Maldives and India discussed cooperation in satellite data and space technology, and China reiterated readiness to support Maldives priorities under the free trade framework. Tourism Leadership Change: Visit Maldives Corporation appointed Abdulla Yaasir as MD after Ibrahim Shiuree resigned, as destination marketing continues.

Foreign Exchange Overhaul: Parliament passed the Foreign Exchange Bill requiring resorts to exchange 40% of monthly USD earnings through the banking system and banning publication/advertising of black-market rates above the Maldives Monetary Authority (MMA) rate, with fines for individuals and legal entities. Tourism Sector Pushback: The Maldives Association of Travel Agents and Tour Operators (MATATO) warned a separate GST amendment could hit offshore booking platforms and foreign tour operators, while the Tourism Employees Association (TEAM) said the 40% rule risks cutting workers’ incomes; MATI also said consultation gaps remain. Presidential Reassurance: President Muizzu defended the dollar reforms as research-led and consultative, saying solutions will roll out in an orderly way. Tourism Leadership Shuffle: Visit Maldives Corporation named Abdulla Yaasir as its new Managing Director/CEO after Ibrahim Shiuree resigned, as the state tourism body gears up for major marketing. Infrastructure Update: President Muizzu said the Thilamale’ Bridge project (Male’ to Thilafushi) is expected to be completed and opened within a year, with AECOM overseeing quality. Industry Calendar: Travel Trade Maldives (TTM) 2026 opened in Malé with 130+ resorts and 250+ travel operators/agents from 30 source markets.

Foreign Exchange Overhaul: Parliament passed the Foreign Exchange Bill, requiring resorts to deposit 40% of monthly USD earnings through local banks and banning publication/advertising of black-market rates above the MMA rate, with fines for individuals and legal entities. Tourism Backlash: MATATO and TEAM warned the 40% rule could disrupt tourism operations and squeeze workers’ incomes, while President Muizzu said reforms are research-led and will be implemented in an orderly way. Leadership Shake-up: Visit Maldives Corporation saw rapid changes: Ibrahim Shiuree resigned as MD/CEO, and Abdulla Yaasir was appointed as the new MD/CEO; meanwhile Tourism Advisor Mohamed Khaleel also resigned after the forex bill’s passage. Tourism Trade Push: Travel Trade Maldives (TTM) 2026 opened in Malé with 250+ international operators/agents and 130+ resorts, as Visit Maldives ramps up destination marketing. Business & Finance: Maldives Islamic Bank launched an MVR 10,000 remittance lucky draw campaign via FaisaRemit. Governance & Justice: High Court appeal hearings in the Bobby (Abdul Muheeth) murder case concluded after four years, with the verdict date still pending. Climate & Environment: India’s Bhupender Yadav met Maldives’ Ali Shareef at UNCCD COP17, discussing coastal ecosystem protection and land restoration.

Tourism FX Rules Under Fire: Parliament rejected an emergency motion from MDP MP Mauroof Zakir challenging the plan to require resorts to exchange 40% of USD earnings through the Maldives Monetary Authority (MMA), with critics warning it could disrupt tourism and investor confidence. Dollar Shortage Debate: Nasheed also warned the 40% USD conversion could undermine returns for foreign investors, while MMA-linked proposals to tighten monitoring and shorten exchange periods remain contentious. Banking Compliance for Expat Salaries: The Home Ministry introduced amendments requiring expatriate workers’ salaries and contractual payments to be deposited into bank accounts in their names at MMA-registered/licensed institutions, effective 30 days after publication. Sukuk Financing for Hulhumalé: MHA Private Limited closed an MVR 30m Sukuk (8% profit rate) to fund “MHA Promenade” commercial development in Hulhumalé, with retail and institutional subscriptions. Scam Losses: Police Anti-Scam Centre reported MVR 457,776.96 lost to scams last week, with online messaging and phishing among common tactics. Housing Finance Progress: Under “Hiyaavehi,” 244 people received low-interest housing loans, with 629 more expected to be funded next month. Crime Asset Bill Drafted: Government submitted a bill to enable seizure and confiscation of property obtained through criminal activity, though details are not yet published.

Tourism FX Pressure: Kendhoo MP Mauroof and former President Nasheed both criticised the MMA plan to require resorts to convert/deposit 40% of USD earnings, warning it’s rushed and could hurt investor confidence—especially for foreign-backed resorts with USD debts. Expat Banking Rules: The government amended employment regulations so expatriate salaries must be deposited into bank accounts in workers’ own names at MMA-licensed banks, effective after publication; the move aims to formalise payments and support remittance tax collection. UPI at 10: India marked 10 years of UPI, calling it a “major turning point” with growth to 24,162 crore annual transactions and about Rs 314 lakh crore value; the system is now accepted in 11 countries including the Maldives. Housing Finance: Under the ‘Hiyaavehi’ low-interest scheme, 244 people received housing loans, with 629 more expected to be disbursed next month. Regional Business Links: India and Maldives reviewed progress on the Felivaru fisheries project under an Indian line of credit, including cold storage and freezing capacity.

FX & investor trust: Former Economic Minister Fayyaz Ismail says the USD rate jump (from ~MVR 17.50 to above 23) is driven by “excessive spending” and weak fiscal discipline, not policy gaps. Tourism currency rules under fire: Former President Mohamed Nasheed warns that forcing resorts to exchange 40% of USD earnings with the MMA could hurt investor confidence and long-term tourism stability, given dollar debts. Resort forex pressure response: MATI says the proposed 40% USD exchange requirement is “not viable” and argues blanket rules based on allegations against specific operators are unfair. Dollar crackdown & black market: Home Minister Ali Ihusan alleges politicians are manipulating illegal USD exchange; he cites seven dealers handling $76m in nine months and urges compliance with official MMA rates. Foreign workers banking requirement: The Home Ministry amended rules so expatriate salaries must be deposited into bank accounts in employees’ names at MMA-registered banks, effective in 30 days. Housing finance progress: 244 people have received loans under the ‘Hiyaavehi’ scheme, with 629 more expected next month. Regional business angle: Bahamas trade officials argue tourism supply chains should be used to build local exporters—an “export market at our doorstep” approach. UPI global spotlight: India marked 10 years of UPI, citing massive transaction growth and noting acceptance now in 11 countries including the Maldives. Visit Maldives leadership: Ibrahim Shiuree resigned as Managing Director of Visit Maldives; no reason was given.

Rufiyaa Push: Maldives Monetary Authority Governor Ahmed Munawwar says the country should shift all domestic transactions to Maldivian rufiyaa by 2030, noting foreign currency still makes up over 40% of money supply and that tourism-linked payments and dollar salaries must move to rufiyaa to boost demand. Resort FX Rules Under Fire: The MMA plans to amend the Foreign Exchange Act to require resorts to convert 40% of dollar earnings via local banks (up from 20%) and speed the conversion cycle from every three months to monthly; Maldives Association of Tourism Industry (MATI) calls the 40% requirement “not viable,” arguing resorts already face heavy dollar costs. Dollar Black Market Crackdown: Homeland Minister Ali Ihusaan warned that selling dollars at inflated rates without permission is a criminal offence, citing investigations into seven illegal dealers and claiming about USD 77m moved through the black market in nine months, including alleged resort involvement. Housing Milestone: Rasmalé reclamation has reached 716 hectares out of 1,150, making it the largest island by land area, with the project aimed at housing about 65,000 people. Legal Update: High Court dismissed Medhufushi Investment’s appeal over MIRA’s GST recovery case, upholding a lower court order for MVR 50,950 plus about USD 2.82m. Business Performance: MTCC reported net profit of MVR 85m (+88%) despite a 1% revenue dip, with construction and dredging still the biggest revenue source. Tourism Leadership: Visit Maldives MD Ibrahim Shiuree resigned, with the reason not yet officially confirmed.

Foreign Exchange Crackdown: MMA proposes raising resorts’ mandatory dollar conversion/deposit from 20% to 40% and speeding the cycle from every three months to monthly, aiming to boost formal TT capacity and curb black-market diversion. Compliance Pressure on Tourism: MMA names Rahaa Resort (Laamu) and South Palm Resort Maldives (Addu) as failing to meet mandatory USD exchange rules, while reporting 78% of resorts are compliant. Black-Market USD Enforcement: Homeland Minister Ali Ihusaan warns high-rate dollar sales without permission are criminal, citing USD 76m laundered in nine months and investigations into seven illegal money exchangers. Monetary Policy Moves: MMA withdrew MVR 3bn via open market operations and plans higher bank reserve requirements (10.5% to 11%) to ease Rufiyaa pressure. Payment Infrastructure: President ratifies amendments to create a national payment switch under MMA oversight, requiring routed payments through the designated system. Tax & Trade Rules: Parliament doubles withholding tax on foreign construction contractors (5% to 10%) and approves GST for offshore booking platforms and foreign tour operators under the destination principle. Visit Maldives Shake-up: Ibrahim Shiuree resigns as MD of Visit Maldives; PCB has not yet confirmed details. MTCC Results: MTCC profit rises to MVR 85m despite a 1% revenue dip. SIDS Business Push: Maldives hosts SIDS Global Business Network Forum and Island Investment Forum, with calls for innovation-led investment and stronger regulation.

Foreign Exchange Crackdown: The Maldives Monetary Authority flagged Rahaa Resort (Laamu) and South Palm Resort Maldives (Addu) for failing to meet mandatory USD exchange rules, noting 78% of resorts are compliant while 20% fall short. Tax & Payments Overhaul: Parliament ratified a Payment Systems Act amendment to enable a national payment switch under MMA oversight, while GST rules now extend to foreign tour operators and offshore booking platforms using the destination principle; Parliament also doubled withholding tax on foreign construction contractors to 10%. Waste & Plastic Fees: Muizzu ratified Waste Management Act amendments ending “double taxation” on plastic bags and banning waste imports, with new enforcement roles for regulators. SIDS Business Push: Muizzu and Economic Minister Saeed used the SIDS Global Business Network Forum to argue for stronger, transparent regulation to attract investment and back innovation-led MSMEs. Infrastructure & Water: India’s Greater Malé Connectivity Project reached a key milestone with the final Malé–Vilimale bridge segment installed; MWSC plans subsea water production from 500m depth next year. Tourism Industry Moves: MATI will run an AI Transformation Programme for tourism leaders, and Visit Maldives backed FHAM 2026 in Hulhumalé. Logistics: MACL opened a tender for cargo office spaces at VIA’s cargo terminal, as VIA reported 18,457 tonnes of cargo in Q2.

Tax & Trade Policy: Parliament passed GST on services by foreign tour operators and offshore booking platforms, targeting the “destination principle” and projecting MVR 1.61bn annually if implemented. Foreign Contractor Costs: Withholding tax on foreign contractors’ construction payments was doubled to 10% (from 5%), aiming for a fairer bidding environment. Dollar Crunch Response: MMA Governor Ahmed Munawar said a Rufiyaa-only rule for domestic transactions could ease USD shortages if fiscal and monetary fundamentals are kept tight. FX Crackdown: MMA revoked Express Money Exchange’s licence for breaches, as enforcement against illegal USD trading intensifies. Infrastructure & Connectivity: The India-funded Greater Malé Connectivity Project hit a key milestone with the final Thilamalé–Vilimale bridge segment installed, while MWSC plans next year to start subsea water production and pipe supply via the bridge. Tourism & Hospitality: Visit Maldives backed FHAM 2026 (7–9 Sept) and MATI will run an AI transformation programme for tourism leaders. Business & Logistics: MACL opened a tender to lease cargo terminal “cargo office” spaces at VIA, and VIA reported 18,457 tonnes of cargo in Q2. Public Finance: Government deposited MVR 1.3bn into the Sovereign Development Fund this year and spent MVR 9.7bn on debt repayments. Industry & Community: FDC appointed Hassan Faihath as Deputy Managing Director, and the government plans Hulhumalé’s Grand Mosque for the 900-year Islam anniversary.

Cargo & Logistics: MACL has opened a tender to lease vacant “Cargo Office” spaces at VIA’s new Cargo Terminal, targeting cargo airlines, cargo sales agents, cargo brokers/clearing agents and courier agents; bids close Sept 6. Public Finance: The government deposited MVR 1.3bn into the Sovereign Development Fund by Aug 13, while debt repayments rose to MVR 9.7bn and a USD 500m debt was repaid. Water Security: MWSC says Male’ and Hulhumalé supply plans include subsea desalination starting mid-next year using a Norwegian-developed 500m-deep intake, with pipelines via Thilamale’ Bridge. FX Crackdown: MMA revoked Express Money Exchange’s licence for illegal FX dealings, as Parliament moves to penalise advertising black-market USD rates. Monetary Policy Debate: MMA Governor Ahmed Munawar argues a Rufiyaa-only rule for domestic transactions could ease USD shortages if fiscal and monetary fundamentals are kept tight. Housing & SOEs: FDC appointed Hassan Faihath Qudhrathulla as DMD; President Muizzu also pledged more Greater Male’ housing allocations in his final year. Business & Investment: Maldives will host the SIDS Global Business Network Forum and Island Investment Forum Aug 23–25 with 200+ participants. Healthcare Access: STO introduced GE HealthCare’s portable Vscan ultrasound to expand diagnostics beyond major islands. Fisheries Support: Aaruveri Matching Grant Scheme launched with MVR 278m for fisheries businesses, including renewable energy and value-add projects.

Housing & State Firms: Fahi Dhiriulhun Corporation (FDC) appoints Hassan Faihath Qudhrathulla as Deputy Managing Director, as the state housing provider continues work on a 4,000-unit Hulhumalé project. Islam & Infrastructure: Maldives plans its largest mosque in Hulhumalé for the 900th anniversary of embracing Islam, with land handed over to the Ministry of Islamic Affairs and construction expected in 2026. FX Crackdown: The Maldives Monetary Authority (MMA) revokes Express Money Exchange’s licence for breaches of money-changing rules, while Parliament backs penalties for advertising or trading black-market USD rates. Rufiyaa-Only Push: MMA Governor Ahmed Munawar says a Rufiyaa-only approach for domestic transactions could ease the dollar shortage if fiscal and monetary fundamentals are kept tight. Public Finance Watch: Government spending on salaries, allowances and pensions hits MVR 9.38bn as of Aug 13, up 11.2% year-on-year. Trade & Payments: Maldives-Türkiye PTA takes effect Aug 1, offering duty concessions and duty-free access for selected goods, with the creative sector flagged as a key beneficiary. Logistics: Velana International Airport handled 18,457 tonnes of cargo in Q2 2026, with transshipment and freighter operations rising. SIDS Business Forums: Maldives will host the SIDS Global Business Network Forum and Island Investment Forum Aug 23–25, drawing 200+ participants from 30+ countries. Health & Diagnostics: STO introduces GE HealthCare’s portable Vscan ultrasound to expand diagnostic access beyond major clinics. Fisheries Grants: Aaruveri Matching Grant Scheme launches with MVR 278m for fisheries sector projects, including renewable energy, mariculture and value-add activities.

Currency Policy & Enforcement: Maldives Monetary Authority Governor Ahmed Munawar says the USD shortage could be tackled by enforcing Rufiyaa-only transactions domestically, if fiscal and monetary fundamentals are kept tight. In parallel, the MMA revoked Express Money Exchange’s licence for illegal FX dealings, while Parliament’s Public Accounts Committee approved fines for advertising or trading black-market USD rates. Trade & Regional Finance: Maldives-Türkiye Preferential Trade Agreement took effect Aug 1, with duty concessions aimed at boosting sectors including the creative economy. Logistics & Connectivity: Velana International Airport handled 18,457 tonnes of cargo in Q2 2026, up 2% QoQ, with transshipment and freighter operations rising as the airport expands cargo capacity. Business & Investment: Maldives will host the SIDS Global Business Network Forum and the inaugural Island Investment Forum Aug 23–25, drawing 200+ participants from 30+ countries. Health & Industry Support: Aaruveri Matching Grant Scheme allocates MVR 278m for fisheries sector projects, while STO introduced GE HealthCare’s portable Vscan ultrasound to expand diagnostics beyond clinics. Public Spending: Government salaries, allowances and pensions reached MVR 9.38bn as of Aug 13, up 11.2% year-on-year.