Download Maldives Economic Vision 2013

Maldives Economic Vision 2013 - 2018
Building a Sustainable & Vibrant Economy
Lets Turn
Challenges into
Opportunities
Turning
Challenges into
Opportunities
“The challenges facing our economy today can be
overcome only through strategic and operational policy
reforms. We must reinforce the pillars of the national
economy. Policy reforms must be timely and decisive.
Our economic base must be widened and volume of
trade enhanced. Boosting the income of our fishermen
and farmers is an immediate priority. The industry and
talent of our youthful populations must be tapped
adequately towards this economic transformation, and
this objective can only be achieved through the provision
of gainful employment to the many disenfranchised
youth. Empowering the youth will be an overarching
theme of my presidency.” - Inaugural Address by His
Excellency President Abdulla Yameen Abdul Gayoom
( November 17, 2013 ).
Maldives
open
Key Economic
Indicators
Quick Facts
» Straddling the Equator, due south-west of the
southern tip of India.
» Area: 859,000 sq. km. (including EEZ)
» Number of islands: 1,192
» Number of inhabited islands: 194
» Population: 350,759 (2012 est.)
» Life expectancy: 73.8 years
» Infant mortality: 9 per 1000 live births
» Literacy rate: 98.2 percent
» Language:
- Dhivehi (native)
- English (business language)
» Communication:
- 621,043 cellular phone lines
(double the population)
- 130,191 subscribed Internet customers
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GDP: US$2,292 million (Maldives Monetary Authority, 2013)
GDP per capita: US$6,567 (World Bank, 2013)
Inflation: 10.8 percent (2012)
Total exports: US$167 million (2012)
- Tourist arrival: more than 1,000,000 (End of November 2013)
- Resorts in operation: 105 (End of June 2013)
- Bed capacity: 22,942 (End of June 2013)
» Exchange Rate: US$1 = MVR15.42
Progressive
Investment
Climate
Maldives is a haven for foreign investors
with liberal economic policies and
political stability.
Incentives for investors include import
duty concessions, foreign ownership and
no restrictions on repatriation of earnings
and / or profits.
Availability of international arbitration in
dispute settlement.
Government’s
Economic
Vision
Vision to become a high income, resilient and
inclusive economy.
Lay the foundation to diversify the economy to new
sectors and industries.
Establishment of free trade/economic zones.
Diversifying financial services sector through the
development of a modern legal regime for financial
services; attracting international banks and other
financial institutions; building reputation of Maldives’
financial services and attracting investment funds/
venture capitalism.
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Tourism &
Hospitality
» Develop 50 new resorts in the next
five years.
» Introduce vertical tourism.
» Position Maldives as a “Vacation
Home”.
» Harness untapped markets.
» Develop live-aboard marina
infrastructure.
» Develop medical tourism with world
class facilities.
» Establish Maldives as an attractive
destination for passenger liners.
» Introduce educational tourism.
The world’s
top, award-winning
luxury holiday destination.
Fisheries
» Strengthen the concept of eco-friendly/dolphinfriendly fishing in the Maldives.
» Major exponent of “Pole and Line” sustainable
fishery.
» Establish collection, packaging and distribution
mechanisms for local fresh produce to encourage
individual and community level farming.
» Diversify the fishing sector by opening up of EEZ.
» Invest in targeted mariculture.
» Certified highest standard processor and exporter
of value added skipjack and yellowfin tuna to
major European, American, Middle Eastern and
Far East markets.
Maldives pole-and-line skipjack fishery
was awarded Marine Stewardship Council
(MSC) certification.
Transport
» Establish a transhipment port in the north.
» Upgrade the international airport in Hulhule’ as
a regional transit hub with the ability to service
Airbus A380.
Maldives has the largest
seaplane fleet in the world.
Zero import duty for
renewable energy products.
Shifting to Clean Energy
The Maldives’ vulnerability to climate change is one of its biggest development challenges. The Government aims
to draw up a framework to generate 70 per cent of its energy use by clean energy sources, by 2020.
Objectives of shifting to clean energy:
Mitigate against climate change in the Maldives,
Reduce dependency on imported fossil fuels for power generation,
Increase energy security, and
Reduce dependency on foreign economies.
Major components of the project include:
Identify potential energy alternatives,
Scale-up investment in renewable power generation,
Promote environment-friendly technologies for households, industry and business.
Promote energy efficiency and conservation through standards, regulations, pricing policies and
public awareness, and
Introduce demand management measures.
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Key Economic
Initiatives
Special Economic
Zones (SEZs)
Objectives of creating the SEZs:
» Promote and facilitate industrial, economic, social and
infrastructure development.
» Create investment opportunities and increase foreign
earnings.
» Increase employment opportunities for the Maldivian
youth.
» Increase productivity of goods and services.
Government will provide special incentives and
concessions for those investing and doing businesses in
the SEZs.
SEZs will have the following facilities:
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Business incubation units.
Export processing zones.
Free trade areas and industrial parks.
Regional headquarters.
ICT parks.
Agricultural free trade zones.
Tourism research centres.
Potential business and economic activities targeted to
the SEZs include:
» Premium class tourist hotels (vertical tourism) and
resorts.
» Conference and event facilities.
» Sea sports tourism.
» Medical tourism.
» Yacht and cruise tourism infrastructure.
» Family tourism.
» Production activities such as manufacturing of
goods, technological products and agricultural
equipment and tools.
» Industrial activities such as metal and steel work.
» Poultry farming.
» Service sectors such as transportation, logistics,
warehousing, education, health, housing, basic
necessities, infrastructure suppliers and support
centres, sports, financial districts and off-shore
banking.
» Infrastructure development such as building
roads, bridges, airports and seaports, utilities,
telecommunication and waste management.
iHAVAN – Integrated
Development Project
With the shift in wealth and markets towards Asia, the
Maldives is well placed at the heart of the Indian Ocean.
The country is strategically located on the major shipping
route of the Indian Ocean.
» Situated at 7°0’27”N Latitude and 72°0’52”E Longitude,
the northern most atoll of the Maldives archipelago in
North Thiladhunmathi.
» iHavan has enormous advantages for global trade and
commerce – more than 2 billion people live within four
hours’ flight time.
» Goods worth more than US$18 trillion are transported
by sea across this region every year.
» Over 70,000 ships cross the Indian Ocean every year.
» Every year, more than 5 billion barrels of the Arabian
Gulf Oil en route to Asia are transported in oil tankers
that travel just north of iHavan.
» iHavan offers development of 5,700 hectares of land
along with natural deep harbours.
Major components of iHavan
include:
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A container transshipment port with break-bulk and warehousing,
An airport catering for passenger and cargo traffic,
An international shopping and commerce hub,
A cruise liner terminal,
A yacht marina,
An oil storage and bunkering facility,
Real estate development, and
Conventional and vertical tourism services.
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iHAVAN
iHavan will be demarcated as a
Special Economic Zone that, allows
comprehensive incentives for investors.
Offering unrivalled strategic access to
the global growing consumer markets,
iHavan will include incentives to attract
regional officers of multinational
corporations. Top executives will have
the best of all worlds – bureaucracyfree work environment, advantageous
location and the opportunity to reside in
a tropical-paradise.
Cruise Terminal
» Develop a Cruise Terminal and establish
boutique shopping and tourist related
facilities in close proximity to the terminal.
Luxury Yacht
Marinas
» Establish luxury yacht marinas in
the north, centre and south of the
Maldives, to maximize advantage as
a premium tourist destination.
Male’–Hulhule’ Bridge
» Improve the connectivity and mobility of the population of greater-Male’ region.
» Facilitate the development of Hulhumale’ to its full potential.
» Develop through PPP and the proponent shall engage in the designing, building, financing,
maintenance and operation of the bridge.
» Investor will have the provision of relevant commercial development rights.
» Investor can propose added incentives required for the feasibility of the project.
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Expansion of Ibrahim Nasir
International Airport (INIA)
» INIA is the main gateway into the Maldives.
» Government seeks investors in envisaged further development phases of INIA, with Maldives
Airports Company Ltd (MACL), a government corporation as the operator of INIA.
Expansion of
International &
Domestic Airports
» Develop new domestic airports and upgrade the existing
international and domestic airports.
» Major expansion projects include:
- Upgrading Gan International Airport – extend and
resurface airport runway, expand apron, build new
taxiway, establish a seaplane base, promote as
boutique airport for private jets.
- Redeveloping Hanimaadhoo International Airport as a
multi-modal international transport hub – expand the
runway and build new terminal facilities.
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Multi-Speciality
Hospital
» Super speciality medical facility with a range of critical
care services to cater demand of locals and visiting
tourists.
Maldivian Youth Resource Institute of
Arts & Design (MYRIAD)
» Project will combine fine arts, performing arts, music and design – both traditional and
contemporary.
» Project will be based in a prospective site in Hulhumale’.
» MYRIAD will have an amphitheatre, gallery spaces, studio/workshop spaces, auditoriums and
showrooms.
» A hotspot for excursion visitors to Hulhumale’.
IT Technopolis
» Establish an IT park in Hulhumale’ with special
economic privileges.
» Develop physical and IT infrastructure and
supporting facilities.
» Develop an IT Training Institute.
» Develop a mechanism to provide incubator
services and seed funding system to match local
and foreign investors and provide funds and
office space for start-ups.
New National Stadium
» Establish a world-class multi sports stadium that caters
for local and international sporting events.
» Stadium complex will be used as a training facility for
international athletes.
National Aquatic
Centre
» Establish an environmentally sustainable
aquatic centre with modern services.
» The National Aquatic Centre will have an
Olympic-sized, competition heated swimming
pool, practice pool, diving pool, spectator
seating, fitness centre, plant and equipment
rooms, kiosk and café seating, office
accommodation, roof garden and shopping
space.
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Challenges
Challenges
» Maldives has an extremely high dependency on imported
petroleum.
» The 2012 fuel imports bill of US$488 million amounted to 22
percent of annual GDP.
» Expenditure on fuel rose by 33 percent in 2012 compared to 2011.
» The largest proportion of fuel is used for electricity generation and
» Maldives
has an extremely
in the transportation
sector.high dependency on imported
petroleum.
» The 2012 fuel imports bill of US$488 million amounted to 22
percent of annual GDP.
» Expenditure on fuel rose by 33 percent in 2012 compared to 2011.
» The largest proportion of fuel is used for electricity generation and
Petroleum
product
imports, 2000-2012
in
the transportation
sector.
Petroleum product imports, 2000-2012
» Due to the prevalent financial situation, the country lacks
appropriate funding to implement key developmental projects
proposed by the Government.
» The Maldives needs technical and financial assistance from
friendly countries and donor agencies to overcome the
economic challenges faced by the country.
»» Due
to the prevalent
financialcorporate
situation,investments
the country lacks
The Government
welcomes
in
appropriate
funding
to implement
key developmental projects
implementing
key development
projects.
proposed by the Government.
» The Maldives needs technical and financial assistance from
friendly countries and donor agencies to overcome the
economic challenges faced by the country.
Quantity
of fuel
imports
by type,
2012 in
» The
Government
welcomes
corporate
investments
implementing key development projects.
70% Diesel
337.531 MT
2% Propane
Quantity of fuel imports by type, 2012
10.019 MT
8% Petrol
38.008 MT
70% Diesel
337.531 MT
2% Propane
20% 10.019
Jet FuelMT
93.865 MT
8% Petrol
38.008 MT
20% Jet Fuel
93.865 MT
Source: Maldives Economic Diversification Strategy – Aug 2013
Why Invest in
Maldives
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Strategic location.
Political stability.
Government driven projects.
Safe and fair business environment.
Investment promotion – incentives,
concessions, cross subsidies, leverages
and government guarantees.
Liberal tax regime.
International arbitration in dispute
settlement.
Full repatriation of earnings and / or profits.
World’s top luxury tourist destination.
Young and dynamic workforce.
Highest literacy rate in South Asia.
CORPORATE DEVELOPMENT SECRETARIAT
THE PRESIDENT’S OFFICE
Boduthakurufaanu Magu,
Male’ 20113,
Republic of Maldives.
Phone: +960 332 3701
Fax: +960 332 5500
Email: [email protected]
Website: www.presidencymaldives.gov.mv
MINISTRY OF FOREIGN AFFAIRS
Boduthakurufaanu Magu,
Male’ 20307,
Republic of Maldives.
Phone: +960 3323400
Fax: +960 3323841
E-mail: [email protected]
Website: www.foreign.gov.mv
MINISTRY OF ECONOMIC DEVELOPMENT
Boduthakurufaanu Magu,
Male’ 20125,
Republic of Maldives.
Phone: +960 332 3668
Fax:
+960 3323840
Email: [email protected]
Website: www.trade.gov.mv
MINISTRY OF TOURISM
5th Floor, Velaanaage,
Ameeru Ahmed Magu,
Male’ 20096,
Republic of Maldives.
Phone: +960 3323224/+960 3323226
Fax: +960 3322512
E-mail: [email protected]
Website: www.tourism.gov.mv
INVEST MALDIVES
Ministry of Economic Development,
Boduthakurufaanu Magu,
Male’ 20125,
Republic of Maldives.
Phone: +960 332 3668
Fax: +960 3323840
E-mail: [email protected]
Website: www.investmaldives.org
EXTERNAL RESOURCE
MANAGEMENT DIVISION
Ministry of Finance & Treasury,
Ameenee Magu,
Male’ 20379,
Republic of Maldives.
Phone: +960 334 9225/+960 334 9200
Fax: +960 332 4432
E-mail: [email protected]
Website: www.finance.gov.mv