President Dr Mohamed Muizzu has decided to merge specific State-Owned Enterprises (SOEs) to meet the targets of his Economic Reform Agenda, based on recommendations from his Cabinet. This decision was announced at a press conference held at the President’s Office on Sunday, following the Cabinet session.
The decision followed comprehensive deliberations on a proposal presented by the Ministry of Economic Development and Trade during the most recent Cabinet meeting.
The strategic decision to merge the Regional Airports Company Limited (RACL) with the Maldives Airports Company Limited (MACL) was made because MACL, being a large company and the leading airport operator nationwide with years of experience, could potentially create synergies with RACL and lead to better management of RACL and the regional airports. The merger is to be completed by January 31, 2025.
Additionally, the decision to designate Fahi Dhiriulhun Corporation (FDC) as a subsidiary of Housing Development Corporation (HDC) with a 100 percent stake entails the transfer of social housing projects undertaken by HDC, as well as the Ministry of Housing, Land and Urban Development, to FDC. FDC would also provide municipal services not carried out by the City Council. HDC will continue to carry out all current mandated works directly unrelated to social housing and will be open for public shares by being listed as an Initial Public Offering (IPO). The merger is to be completed by February 1, 2025.
The Cabinet also decided not to pursue the proposed merger of the Maldives Fund Management Corporation Limited (MFMC) and the Business Centre Corporation (BCC) at this point in time. However, the President decided to dissolve the Maldives Integrated Tourism Development Corporation Limited (MITDC) and include integrated tourism-related works within the changes brought to the mandate of the MFMC. This change is to be completed by December 31, 2024.
The President also decided to continue projects undertaken by Ocean Connect Maldives Private Limited (OCM) without any changes. Additionally, the President decided to dissolve Agro National Corporation Private Limited and transfer its works to the Maldives Industrial Development Free Zone Public Limited.
The President’s Office held a press conference following the Cabinet decisions to brief the media on its decisions. Cabinet ministers provided detailed answers to the queries posed by the media.
