Incentives for businesses in Addu as city set for transformation as IT hub

President Dr. Mohamed Muizzu has announced plans incentivize business operations in Addu City, the Maldives’ second most populous atoll, and to transform it into an Information Technology (IT) center.

In his presidential address at this year’s inaugural parliamentary session on Thursday, the President stated that Addu City has been designated as a zone where small and medium enterprises (SMEs) will receive operational incentives. He also revealed that opportunities are now available for parties interested in developing Addu City into an IT hub.

According to the President, the incentives offered to businesses in Addu City will include tax exemptions.

Speaking further, President Muizzu highlighted the administration’s efforts to support SMEs, adding MVR 349 million has been disbursed to such businesses to date.

Moreover, he noted that the government has settled MVR 6.3 billion in overdue payments owed to businesses for various services and MVR 469 million of the MVR 882 million owed by state-owned companies in long-standing bills.

The President highlighted the absence of online payment infrastructure as the primary obstacle to the growth of SMEs. He added that PayPal will soon be introduced in the Maldives to resolve this, while the newly introduced locally-developed multicurrency digital wallet, Swipe, is also aimed at resolving this.