News DeskKULHUDHUHFUSHI, Maldives — The Maldives embarked on a new economic venture today as two vessels essential for bunkering operations docked in this northern city, marking the island nation’s foray into the maritime fuel supply industry.
Mohammed Wajeeh Ibrahim, CEO of the state-owned Maldives Ports Limited (MPL), greeted the arrival of a pilot boat and tugboat in Kulhudhuhfushi city. The event underscores the government’s push to expand beyond the country’s longtime economic mainstay: tourism.
“With these vessels, we’re all set to launch our bunkering service,” Mr. Wajeeh said. He noted that international fueling operations are slated to begin in the northern region on Aug. 20.
The move aligns with President Mohamed Muizzu’s campaign promise to broaden the Maldivian economy, which has long leaned heavily on tourism — a sector accounting for roughly a quarter of the country’s GDP.
In a bid to establish the Maldives as a refueling hub in the Indian Ocean, the government has teamed up with Vitol, a major player in the global energy and commodities market. Mr. Wajeeh outlined a two-phase implementation plan for the bunkering services: the first offering off-port operations, followed by a second phase focused on developing comprehensive port infrastructure and ancillary services.
“Ships traversing these waters will now have the option to refuel and resupply here,” Mr. Wajeeh explained. “We expect this venture to generate substantial revenue for the state.”
The Maldives’ location in the Indian Ocean, near key shipping routes, makes it a natural fit for this industry. While major shipping lanes don’t cut directly through the northern Maldives, the region still holds strategic importance for maritime traffic.
The Eight Degree Channel, a crucial shipping passage, skirts the Maldives’ northern edge, sandwiched between the country’s northernmost atolls and Minicoy Island, an Indian territory. This route sees heavy traffic from vessels plying between the Middle East and Southeast Asia.
Moreover, the northern Maldives sits close to bustling east-west shipping corridors linking Asia with Africa, the Middle East, and Europe via the Red Sea and Suez Canal. Some vessels opt for routes near the northern Maldives as alternatives to more congested lanes, particularly those headed to or from ports in southern India or Sri Lanka.
Beyond bunkering, the Maldivian government is exploring other avenues for economic diversification. Plans are in the works to introduce an offshore banking framework, aiming to attract foreign capital and bolster the nation’s financial sector.
The MPL has several projects in the pipeline, including a yacht marina in Uligam — the northernmost island of Haa Alif Atoll, a mere 120 kilometers from India’s Lakshadweep Islands. Water bunkering services have already begun in Thuraakunu. Meanwhile, in Kulhudhuhfushi city, the MPL shipyard is on the verge of completion, with reports indicating its 95 percent finished.
However, the government’s efforts haven’t been without challenges. An economic analyst in Malé, speaking on background due to the sensitive nature of government projects, noted “These projects show promise, but there’s room for improvement in how they’re presented to the public. Clear, consistent communication will be key to rallying support for these diversification efforts.”
As the Maldives charts this new economic course, the success of these maritime ventures could reshape the nation’s financial landscape and its role in the competitive Indian Ocean region. In the months ahead, all eyes will be on the island nation as it strives to carve out a niche in regional maritime services while preserving its reputation as a world-class tourist destination.
