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Business images of Maldives

Economy of Maldives

Maldives were renowned for cowries, coir rope, dried tuna fish (Maldive fish), ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.Nowadays, the mixed economy of Maldives is based on the principal activities of tourism, fishing and shipping. This results from the Maldives' strategic geographic positioning near crucial sea routes essential for China's energy provisions. Consequently, China has persistently utilized its economic resources to enhance its sway over the Maldivian government.

Top Sectors in Maldives

Shipping in Maldives

Beginning in the 1990s, the Port of Male received over £10 million in loans from the Asian Development Bank designated for infrastructure upgraded.The ADB notes that from 1991 to 2011, due to the loans, the ports annual throughput in freight tons equaled 273,000. By 2011 that number reached 1 million.The ADB also provided training for port authority staff to increase efficiency. ADB and the Government of Maldives, in a joint report address ship turn-around, "What used to take about 10 days in 1991 was achieved in 3.8 days by 1997, and about 2.6 days by 2014".

Tourism in Maldives

Tourism is the largest economic industry in the Maldives, as it plays an important role in earning foreign exchange revenues and employing 25,000 people in the tertiary sector of the country. The archipelago of the Maldives is the main source of attraction to many tourists visiting the island country. Chinese entrepreneurs have been swiftly amassing assets connected to the tourism sector in the Maldives. Given that tourism is the primary economic driver in the Maldives, this trend is affording the Chinese substantial influence over the nation's economy.The tourism industry is especially vulnerable to climate change: as one of the island nations expected to be most impacted by climate change, sea level rise and subsequent increased extreme weather, coastal flooding, and coral bleaching damage the natural attractions that bring many of the tourists to the country. During the tenure of former President Yameen, the Maldives' indebtedness to China escalated to an amount equivalent to one-fifth of the nation's GDP. Concurrently, China assumed a pivotal role in the tourism sector, a crucial component of the Maldivian economy.

Fishing in Maldives

The fishing industry in the Maldives is the island's second main industry. According to national tradition in the words of former President Maumoon Abdul Gayoom, "Fishing is the lifeblood of our nation, it is inborn. From the soil on which we live, to the sea around us, it remains an integral part of our existence. Fishing, and our country and its people, one and shall remain inseparable forever."The Maldives has an abundance of aquatic life and species of fish. Common are tuna, groupers, dolphin fish, barracuda, rainbow runner, trevally and squirrelfish and many more. Aside from being of essential importance to the economy, fishing is also a popular recreational activity in the Maldives, not only among locals but by tourists. The islands have numerous fishing resorts which cater for these activities.


Maldives - Key Economic Indicators

Exports & Imports

The Maldives primarily exports fish and fish products (including skipjack tuna, canned tuna, and fresh fish), with some additional exports of garments and live coral. According to the World Bank, Maldives' exports reached $542 million in 2022. Imports, on the other hand, are significantly higher, with data from the Asian Development Bank (ADB) suggesting they were around $3.2 billion in 2022.

Balance of Trade

The Maldives faces a negative trade balance, as mentioned earlier. This means the total value of goods they import is much higher than the value of their exports. Tourism, a major revenue earner, helps offset this imbalance.

Infrastructure Development

Due to the archipelago nature of the Maldives, infrastructure development faces unique challenges. Road networks are limited, primarily concentrated on the main island of Malé. However, the government prioritizes infrastructure projects, with the ADB reporting Maldives has over 16,000 kilometers of roads. Efforts are underway to develop inter-island transportation links through ferries, airports, and bridges.

Fiscal Policy

The Maldivian government aims to balance its budget through a combination of tourism revenue, import duties, and taxes. Recent efforts focus on increasing tax collection efficiency and attracting foreign investment. The World Bank highlights a Goods and Services Tax (GST) increase in January 2023 as a measure to improve government revenue.

Monetary Policy

The Maldives Monetary Authority (MMA) manages the country's monetary policy. They primarily focus on maintaining price stability through tools like setting the Maldivian rufiyaa's exchange rate against the US dollar.

Trade Agreement

The Maldives benefits from trade agreements with several countries, including India, Sri Lanka, and Pakistan. These agreements reduce barriers to trade and offer preferential treatment for certain goods.

Environmental Regulations

Environmental protection is crucial for the Maldives, a nation heavily reliant on tourism and vulnerable to climate change. Regulations address issues like waste management, coral reef protection, and sustainable fishing practices. The government actively pursues eco-friendly initiatives and promotes responsible tourism.

Tax System in Maldives

Corporate tax rate: Businesses in the Maldives are subject to a 15% corporate tax rate on profits exceeding MVR 500,000 (approximately USD 32,425) per year.
Sales tax (GST): The Maldives uses a Goods and Services Tax (GST) as its primary sales tax.
Payroll tax: A social security system is funded by contributions from both employers and employees. The total contribution is around 7% of the employee's pensionable wage, with the employer typically paying a portion.
Tax deductions and credits:Tax deductions and credits in the Maldives are limited. Some deductions are available for documented business expenses and social security contributions.
Tax compliance: The Maldives Inland Revenue Authority (MIRA) is responsible for tax collection. While efforts are underway to improve tax compliance, challenges remain, particularly in the informal sector.
Tax burden: The overall tax burden for residents and businesses in the Maldives is considered moderate compared to some neighboring countries. The absence of income tax and capital gains tax contributes to this. However, the recent increase in the GST rate (January 2023) might affect the tax burden for consumers.

54 Live Notices for Maldives ....

Showing 1 to 20

HIRING A PARTY FOR STO HEAD OFFICE CAFETERIA RENOVATION
country Maldives
posting date21 Nov 2024
deadline27 Nov 2024
HIRING A PARTY TO CARRY OUT THE INTERIOR WORKS AT MA. UTHURUVEHI FOR STO SERVICE CENTER RELOCATION
country Maldives
posting date21 Nov 2024
deadline26 Nov 2024
Procurement of Periodic Maintenance of Air-Conditioning Systems
country Maldives
posting date21 Nov 2024
deadline28 Nov 2024
Provision for Implementation, Preparation, And Certification of ISO 9001:2015 (Quality Management System)
country Maldives
posting date21 Nov 2024
deadline25 Nov 2024
Maintenance Retainer Contractors For MACL FMUD At VIA (3rd Round
country Maldives
posting date21 Nov 2024
deadline26 Nov 2024
Supplier of safety belts, helmets and boiler shoots
country Maldives
posting date21 Nov 2024
deadline25 Nov 2024
Maldives - South Asia- P179242- Transforming Fisheries Sector Management In South-West Indian Ocean Region And Maldives Project (Transform, Swiofish5) - Procurement Plan (English)
country Maldives
posting date21 Nov 2024
deadline21 Nov 2025
Consultant To Develop Communications Strategy For The Maldives Gfcr Programme
country Maldives
posting date21 Nov 2024
deadline04 Dec 2024
Consultant To Develop Communications Strategy For The Maldives Gfcr Programme
country Maldives
posting date21 Nov 2024
deadline04 Dec 2024
Local Consultant To Conduct A Capacity Needs Assessment For Icom
country Maldives
posting date19 Nov 2024
deadline03 Dec 2024
Provision for VAN Repairing works(Tinkering& Painting Full Body,Engine Starting Issue's Repairing)etc
country Maldives
posting date19 Nov 2024
deadline25 Nov 2024
Recruitment of consultant for the Project Formulation of the Maldives Second and Third Biennial Transparency Report to the United Nations Framework Convention on Climate Change
country Maldives
posting date18 Nov 2024
deadline25 Nov 2024
PROVISION FOR A CHEMICALS MANAGEMENT CONSULTANT
country Maldives
posting date18 Nov 2024
deadline25 Nov 2024
Provision for a national expert to support the development of a project concept note under NAP Process
country Maldives
posting date18 Nov 2024
deadline28 Nov 2024
Provision for F&B Practical classes Items Wk14 (2024 T2)FHTS
country Maldives
posting date18 Nov 2024
deadline20 Nov 2024
Procurement of “Lease of space to develop/install and maintenance of vending machines at The Maldives National University (MNU)
country Maldives
posting date18 Nov 2024
deadline20 Nov 2024
Hiring A Firm For Ta To Develop A Business Continuity And Disaster Recovery Plan For The National Data Centre And National Computer Network
country Maldives
posting date15 Nov 2024
deadline02 Dec 2024
Design & Build of RO Plant Facility Building at S. Hithadhoo & S. Hulhumeedhoo
country Maldives
posting date15 Nov 2024
deadline19 Nov 2024
Design & Build Works for Tank Foundations Including Pump Shed Building & Boundary Wall Proposed for Upgrading Water Facilities at Addu City
country Maldives
posting date15 Nov 2024
deadline19 Nov 2024
National Consultant To Prepare An Esia And And Its Respective Esmp
country Maldives
posting date15 Nov 2024
deadline28 Nov 2024

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