News Desk
President Dr. Mohamed Muizzu officially established the “Maldives International Financial Services Authority” today, marking a pivotal step towards fostering a robust legal framework for both onshore and offshore financing services. This governmental entity, affiliated with the Ministry of Economic Development and Trade, aims to enhance the financial landscape by addressing legal and administrative challenges and promoting the development of competitive financial markets.
The establishment of the “Maldives International Financial Services Authority” is in response to the evolving financial landscape, extending beyond the offshore financing services outlined in the Special Economic Zones Act (Law No. 24/2014). This move paves the way for the creation of both offshore and onshore development banks, international financial centers, and facilitates research to find contemporary solutions to legal and administrative challenges.
Key functions of the “Maldives International Financial Services Authority” include:
- Developing the legal framework for onshore financing services, supplementing the offshore financing services stipulated in Act No. 2014/24 (Special Economic Zone Act).
- Executing responsibilities related to the establishment of offshore/onshore development banks and international financial centers in alignment with Act No. 2014/24 (Special Economic Zone Act).
- Identifying legal and administrative obstacles hindering the development of a competitive financial market in the Maldives, considering global financial market changes. The authority will conduct research to discover modern solutions to overcome these obstacles.
- Studying necessary reforms in laws and regulatory frameworks to stimulate and increase competition among businesses operating in the financial market of the Maldives.
The “Maldives International Financial Services Authority” will operate under the guidance of a Governing Board and will play a crucial role in shaping a dynamic financial environment in the Maldives.
Funadhoo Island Set to Transform into International Financial Hub
In a significant development on January 4, 2024, President Dr. Mohamed Muizzu announced plans to transform Funadhoo Island in Kaafu Atoll into an international financial hub. The declaration was made during his speech at the inauguration of the megaproject aimed at developing Velana International Airport and the economic zone.
Highlighting operational specifics, President Dr. Muizzu outlined the initiation of efforts to phase out and relocate fuel storage and refueling services provided at Funadhoo Island. These measures are expected to commence within the year and be completed in under two years. President Dr. Muizzu then elaborated on the Administration’s vision to repurpose Funadhoo Island into a hub for international financial services.
In addition to this transformation, the President underscored the Administration’s forward-looking plans, which include connecting Funadhoo, Malé, and Hulhulé through the establishment of a bridge. This strategic initiative not only positions Funadhoo Island as a key player in the financial sector but also integrates it into a broader infrastructure network, fostering economic growth and facilitating efficient connectivity within the Maldives. President Dr. Mohamed Muizzu’s commitment to elevating Funadhoo Island to international financial hub status aligns with the government’s vision for a dynamic and globally competitive economic landscape.
