President Dr Mohamed Muizzu has stated that the goal is to develop the country in various sectors and achieve a prosperous future, with the pace of economic growth this year set to be more rapid than in 2024.
The President made these remarks while delivering the Presidential Address at today's opening session of the People's Majlis for 2025. In his address, he spoke more broadly on economic issues.
The President stated that the country's economy is estimated to increase by 6.4 per cent in 2025. He further noted that 2024 marked a year of growth for the Maldives' official reserves. By the end of 2024, the state's official reserves amounted to USD 673.2 million, reflecting a 14 per cent increase compared to the end of 2023.
The President articulated that, in the interest of the state and every citizen, preserving the value of the Rufiya and addressing the challenges in the foreign exchange market, the formulation and implementation of a foreign exchange law is a crucial step. He further highlighted that positive changes would soon be visible, with state-owned companies able to receive dollars at the official rate, starting from September 2025, without the need to go to the parallel market. Additionally, from January 2026, the amount of dollars issued to banks for telegraphic transfers (TT) would be increased to facilitate the import of goods from local traders.
The President stated that the USD 500 earned by every Maldivian departing from Velana International Airport would be doubled in the first quarter of 2026, increasing to USD 1,000. Thus, credit card limits will be increased to $1,400 in the second quarter of 2026.
At the same time, the Maldives will become a more competitive and attractive destination for investors following the change in the Foreign Investment Act last year, which occurred after a gap of 45 years.
The President stated that small and medium enterprises are the key driver of the economy. He noted that, in the past year, MVR 198 million had been disbursed to 374 businesses, and repayment terms for COVID-19-related loans had been eased.
President Dr Muizzu announced that the 'Exhibition 2025' of local products will be held in May 2025 to boost the country's productivity and create business opportunities. This initiative aims to provide a suitable market for local products, promote the development of unique local goods, and offer a platform for tourists and the general public to view these products in one place.
He emphasised that improving the capacity of the people and ensuring that the cost of living does not rise is one of the main objectives of the economic policies. He added that considering the changing global market prices and the evolving economic situation in the country, the country will be able to manage it this year without increasing inflation.
The President expressed the intention to transform agriculture into a key part of the Maldivian economy. He announced that a special project would be launched this year to establish an economic zone for agriculture and to ensure the production of main crops in the country to support food security. He further noted that the project would be completed by 2028 and would bring significant benefits to the country's economy.
President Dr Muizzu highlighted the successful steps taken by the Government to address the issue of illegal immigrants in the Maldives, noting that it is one of the biggest impediments to the country's economic progress and its ability to move forward at the fastest pace, particularly in resolving the foreign exchange problem. He also stated that drug addiction is another major challenge hindering the growth of the country's economy.
The President also provided a detailed overview of the country's revenue and state budget. He noted that the benefits of measures implemented to increase the state's revenue are already visible. The state is projected to receive MVR 39.8 billion in revenue and grants in 2025.
Speaking in this regard, the President acknowledged that despite the increase in state revenues, the Maldives continues to face significant challenges. He emphasised the need to eliminate the systemic practice of spending beyond earnings. To address this, cost-cutting measures will be introduced to significantly reduce the deficit this year and lower Government borrowings.
The President stated that the Government is committed to increasing the ICT sector's share in the country's manufacturing standards to 15 per cent by 2030 while ensuring that the benefits of the digital economy reach the local population.
The President also highlighted the tourism industry, stating that the goal is to attract 2.3 million tourists to the Maldives by the end of this year. He mentioned that significant efforts are already underway to achieve this target. Additionally, more wide-body aircraft are expected to arrive in October, which will enable the national carrier to begin direct flights to some destinations in Europe.
The President emphasised the importance of ensuring that every Maldivian has access to banking services from their place of residence. He added that by the end of this year, the Government would begin providing ATM facilities on every inhabited island in the Maldives, regardless of the population size.
