Before the Ink Dries: What the Maldives Must Get Right on MIFC

The announcement of the Maldives International Financial Centre (MIFC) is one of the most ambitious projects in the country's history. Marketed as a USD 8.8 billion plan to transform Malé into a regional fintech hub, it promises a future of innovation, economic diversification, and global investment. But while the vision may be compelling, the silence around key details is deeply troubling.

For a small island nation like the Maldives, foreign investment is not just an option. It is a necessity. But history has shown us what can happen when governments move too quickly and ask too few questions. From the GMR airport compensation saga to the Nexbis border control dispute, past mistakes have come with heavy costs, often paid for through public finances and a loss of public and investor confidence.

A Project Bigger Than Our Economy

The projected MIFC cost exceeds the Maldives’ entire annual GDP, which currently stands at around USD 7 billion. That alone should trigger the highest levels of scrutiny. If this project fails, the fallout will not be limited to investors. It could cripple the country’s finances and reputation for years to come.

Figure 1: Projected cost of the MIFC compared to Maldives' current GDP

The projected MIFC cost exceeds the Maldives’ entire annual GDP, which currently stands at around USD 7 billion. That alone should trigger the highest levels of scrutiny.

Is the Investor Credible?

The project’s lead investor, MBS Global Investments, reportedly manages USD 14 billion and is believed to have ties to Qatari royalty. But these claims have not been verified by any independent review. We do not know what projects the firm has previously completed. We do not know the structure of the financing. And no audited financials or feasibility studies have been made public.

This is not just about curiosity. It is about credibility. It is the government’s responsibility to confirm who we are dealing with and explain what protections exist if those promises do not hold up.

Where Are the Safeguards?

The MIFC has been marketed as a financial free zone with no corporate tax, full foreign ownership, and no residency requirements. These features may appeal to global firms. But what happens if the project stalls midway? Or if it is completed but fails to attract the firms it was designed to serve?

So far, no feasibility studies, financial plans, or risk assessments have been made public. We also do not know whether the Investment Agreement includes penalties for underperformance, provisions for early withdrawal, or safeguards if projected revenues do not materialise.

The Role of the SEZ Framework

The Special Economic Zones Act (Law No. 24/2014) provides the legal foundation for projects like MIFC. It requires every SEZ to be backed by a formal Investment Agreement that includes feasibility and environmental impact studies, anti-corruption safeguards, legal opinions from the Attorney General, and dispute resolution mechanisms.

Figure 2: Key safeguards required under the Maldives SEZ Act

The Special Economic Zones Act (Law No. 24/2014) provides the legal foundation for projects like MIFC. It requires every SEZ to be backed by a formal Investment Agreement that includes feasibility and environmental impact studies, anti-corruption safeguards, legal opinions from the Attorney General, and dispute resolution mechanisms.

These are meaningful requirements. But the law still has critical gaps. The SEZ law may look good on paper, but it creates no real barriers to backdoor deals. With no obligation to publish agreements or consult the public, its promised safeguards can be quietly ignored.

Where the Law Falls Short

While the SEZ Act outlines what should be included in an agreement, it is vague about what happens when things go wrong. There are no clear fallback mechanisms, no performance guarantees, and no minimum standards for investor disclosure.

There is also a structural conflict of interest. The same developer that benefits from the incentives is often given wide control over zone management, internal regulations, and investor services. Without independent oversight, this creates a risk where the same developers who benefit from SEZ incentives are also in charge of making and enforcing the rules. This kind of control can lead to decisions that serve private interests more than the public good.

The Public Has a Right to Know

This is not just a legal issue. It is a democratic one. The people of the Maldives have a right to know what is being done in their name, especially when public resources and the country’s economic future are involved.

This is not just a legal issue. It is a democratic one. The people of the Maldives have a right to know what is being done in their name, especially when public resources and the country’s economic future are involved.

Yet the MIFC contract has not been shared. Parliament has not debated it. Even during the 2025 national budget sessions, MPs flagged the absence of detail on key investment projects. That should raise red flags.

The Role of Parliament

Parliament must not be left in the dark. Its role is not symbolic. It is constitutional. MPs should call for:

• Publication of the full MIFC agreement

• Independent vetting of the investor’s track record and financing

• Legal clarity on how disputes and non-performance will be handled

• Confirmation that the project aligns with long-term development goals

These steps are not excessive. They are necessary to protect national interests. Without active oversight, Parliament risks becoming a bystander to decisions with generational consequences.

As the law currently stands, foreign investment deals, including megaprojects like MIFC and other major investment agreements, do not require parliamentary approval. This puts the onus on Parliament to exercise stronger oversight using the mechanisms it does have. Since 2014, the executive branch has held full authority to approve such deals. This heightens Parliament’s responsibility to demand transparency and hold the government accountable.

Although prior approval is not mandatory under current legislation, parliamentary committees such as the Public Accounts Committee have the power to examine project documents and summon officials. But by the time such reviews occur, the country may already be tied to costly commitments. Preventive oversight must become the norm, not the exception.

This is not just a matter of governance. It reflects a duty of care. Elected representatives, independent institutions like the Anti-Corruption Commission, the Auditor General, and other oversight bodies are entrusted with protecting the public interest.

This is not just a matter of governance. It reflects a duty of care. Elected representatives, independent institutions like the Anti-Corruption Commission, the Auditor General, and other oversight bodies are entrusted with protecting the public interest. That means asking the right questions before decisions are final. When they fail to act in time, the cost is not only financial. It also erodes public trust in the very institutions meant to safeguard and protect it.

When Mistakes Are Made, the Price Is High

The Maldives has already paid for weak investment oversight. The cancellation of the GMR airport contract led to a USD 270 million payout, nearly 10 percent of GDP at the time. Nexbis cost the country another USD 18 million.

These were not isolated accidents. They were the result of poor due diligence, legal blind spots, and the absence of proper checks. If MIFC goes the same way, the damage will be far greater.

Responsible Investment Is Still Possible

None of this is a rejection of foreign investment. The Maldives needs it, and MIFC could still be a turning point. But success will depend on how we manage risk, ensure transparency, and uphold public accountability.

The government must lead with openness. Parliament must demand answers. And the public must be given the facts before decisions are finalised.

Big ideas can reshape nations. But only if they are matched by responsible planning and clear oversight. Before the ink dries on the MIFC agreement, we must be certain the Maldives is prepared, not just hopeful. This is the moment for Parliament, the press, and the public to insist on clarity before it is too late.