AGP Executive Report

Foreign Currency: Official reserves fell 14.9% in September to USD 547 million, while usable reserves dropped to USD 169.8 million. The central bank said dollar sales exceeded inflows, including a USD 50 million debt repayment. Former president Mohamed Nasheed said businesses are struggling to import goods and make telegraphic-transfer payments amid the dollar shortage. Investment Rules: New requirements set at least 25% Maldivian ownership for some foreign investments in construction, real estate, auditing and IT; some sectors are now reserved for Maldivians. Public Finances: State spending rose 18.3% to nearly MVR 36 billion by October 8, while Tourism Goods and Services Tax revenue fell 1.5% year on year to MVR 8.09 billion. External Support: India has reportedly agreed to roll over the Maldives’ USD 320 million currency-swap facility for three months. Local Business: Bank of Maldives-backed tuna jerky venture The Island Factory has expanded to more than 80 retail outlets across 17 islands.

Foreign Investment: New rules require at least 25% Maldivian ownership in some construction, real estate, auditing and IT ventures, while reserving residential projects below US$100 million and general sea transport for locals. Public Finances: State spending rose 18.3% to MVR 35.98 billion by October 8, driven by higher recurrent costs and subsidies. Tourism Revenue: TGST receipts fell 1.5% year on year to MVR 8.09 billion, despite recent tax increases and an expanded tax framework. Currency Support: India has reportedly agreed to extend the Maldives’ US$320 million currency swap for three months, though no official confirmation has been issued. Economic Outlook: The government is seeking international assistance as high fuel costs and weaker tourism weigh on growth; the Finance Minister warned growth could fall to 1% this year. Local Business: BML-backed tuna-jerky startup The Island Factory now sells through more than 80 outlets across 17 islands.

Economic Outlook: The government is seeking World Bank and donor support as higher fuel costs and weaker tourism receipts squeeze the economy. Growth could slow to 1% in 2026, while energy subsidies are pushing the projected budget deficit to 9%. Foreign Currency: The MMA has limited the USD 1,000 medical-travel allowance for self-funded patients to six countries, after dollar sales for medical care reached USD 41.1 million in the first nine months—nearly triple the total for 2025. Rasmale’ Project: Religious scholars have raised concerns about the USD 20 billion Eagle Hills development, while opposition lawmakers seek disclosure of the deal’s terms. Fisheries: MIFCO has raised skipjack tuna purchase prices to as much as MVR 22.75 per kilogram for boats delivering over eight tonnes. Banking: Bank of Maldives reported record nine-month profit of MVR 1.93 billion and MVR 12.1 billion in new loans; Moody’s recently upgraded the Maldives’ credit rating to Caa1 with a stable outlook.

Foreign Currency: The MMA has restricted the USD 1,000 medical-travel allowance to six destinations, citing a sharp rise in demand. USD 41.1 million was sold for medical purposes from January to September, nearly three times the total for all of last year; the USD 2,000 Aasandha allowance remains unchanged. Rasmale’ Investment: The Supreme Court registrar rejected a petition seeking to block Eagle Hills’ proposed USD 20 billion waterfront project, but the deal’s terms remain under scrutiny, with opposition lawmakers demanding disclosure. Eagle Hills hopes to finalize the agreement by November 11; the government says the development could create 15,000 permanent jobs. Credit Outlook: Moody’s upgraded the Maldives’ rating to Caa1 with a stable outlook, citing lower near-term default risk after major debt repayments and refinancing. Banking: Bank of Maldives reported a record MVR 1.93 billion nine-month profit, disbursed MVR 12.1 billion in loans and processed USD 2.86 billion in foreign payments. Forbes also included BML in its 2026 global ranking of top-performing banks. Remittances: Bangladesh’s central bank has proposed currency and payment arrangements with the MMA to help Bangladeshi workers in the Maldives send earnings home through formal channels.

Banking: Bank of Maldives made Forbes’ 2026 list of top-performing banks, while reporting record nine-month profit of MVR 1.93 billion. Foreign Exchange: Dollars sold for medical travel reached USD 41.1 million by September, up from USD 18.51 million in the previous year. Bangladesh has proposed using rufiyaa settlements, travel payments and a currency swap to make remittances home easier for its workers in the Maldives. Tourism: The government expects arrivals to match last year’s 2.2 million, after narrowing an earlier 24% decline to 1.3%. Revenue: MIRA collected MVR 2.69 billion in September; year-to-date revenue reached MVR 27.8 billion. Investment: Eagle Hills hopes to finalise its USD 20 billion Rasmale’ project deal by November 11, as an opposition lawmaker seeks disclosure of the terms. Credit: Moody’s upgraded the Maldives’ rating to Caa1 with a stable outlook, citing progress on debt repayments.

Rasmale’ Deal: Eagle Hills hopes to finalize its proposed USD 20 billion development agreement by November 11, while an opposition MP is seeking disclosure of its terms and a parliamentary debate. Public Finances: MIRA collected MVR 2.69 billion in September, 12.7% above forecast but 10.7% below a year earlier; the year-on-year drop was largely due to a one-off lease-extension payment last September. Tourism: The minister says arrivals have recovered from an early-year slump, with the government now forecasting a return to last year’s 2.2 million visitors. Banking: BML reported record nine-month profit of MVR 1.93 billion and MVR 12.1 billion in new loans, while processing USD 2.86 billion in foreign payments. Currency Transfers: Bangladesh has proposed rufiyaa-based settlement, travel payments and a currency swap to make it easier for Bangladeshi workers in the Maldives to send money home. Aviation: Maldivian is seeking to lease two Airbus A220-300s, with deliveries planned for 2027 and 2028 to support network growth.

Tourism Outlook: Arrivals have recovered from an early 24% decline to just 1.3% below last year, and Tourism Minister Mohamed Ameen says the Maldives could match 2025’s 2.2 million visitors by year-end. Public Revenue: MIRA collected MVR 2.69 billion in September, 12.7% above forecast but 10.7% below a year earlier; revenue reached MVR 27.8 billion by month-end. Aviation: Maldivian is seeking to lease two Airbus A220-300s, with deliveries planned for 2027 and 2028 to support network growth. Banking: Bank of Maldives reported a record MVR 1.93 billion nine-month profit and MVR 12.1 billion in new loans, while supplying customers with USD 722 million in foreign currency. Investment and Jobs: Eagle Hills says its proposed USD 20 billion Rasmale’ development could create 15,000–18,000 permanent jobs, alongside 40,000 construction roles. Credit Rating: Moody’s upgraded the Maldives to Caa1 with a stable outlook, citing improved debt repayments. Business Rules: Authorities say foreign-owned wholesale, retail and logistics firms that miss new investment requirements face enforcement.

Regional Infrastructure: MTCC says F. Magoodhoo airport, a MVR 232 million project, is the first of the airports under development expected to be completed soon. Banking: Bank of Maldives posted a record MVR 1.93 billion profit for the first nine months of 2026, up 26% year on year, and issued MVR 12.1 billion in new loans. It also supplied customers with USD 722 million in foreign currency as demand continued to grow. Investment: Eagle Hills chairman Mohamed Alabbar says the proposed Rasmalé development could create 40,000 construction jobs and 15,000–18,000 permanent positions; the project remains under public debate. Business Rules: The government warned foreign-owned wholesale, retail and logistics firms that enforcement will follow if they fail to meet new investment requirements. Credit Outlook: Moody’s upgraded the Maldives’ rating to Caa1 with a stable outlook, citing debt repayments.

Infrastructure: MTCC says the MVR 232 million Magoodhoo airport is nearing completion, while STELCO has begun taking over electricity services in Addu and Haa Alifu as Fenaka’s operations are wound down. Investment and jobs: Eagle Hills chairman Mohamed Alabbar projects 40,000 construction jobs and 15,000–18,000 permanent roles from the proposed Rasmale’ development; these are company estimates. Banking and credit: BML posted a record MVR 1.93 billion profit for the first nine months, up 26%, and issued MVR 12.1 billion in new loans. It also supplied customers with USD 722 million amid rising demand for foreign currency. Moody’s upgraded the Maldives’ credit rating to Caa1 with a stable outlook. Business rules: Authorities say foreign-owned wholesale, retail and logistics firms must meet new investment requirements or face enforcement. Energy: Resort-sector discussions highlighted solar and battery storage as options to reduce diesel use and strengthen energy resilience.

Utilities: STELCO has taken over electricity services in Addu and Haa Alifu as it continues integrating operations formerly run by Fenaka. Investment: Eagle Hills chairman Mohamed Alabbar says the proposed $20 billion Rasmalé project could create 40,000 construction jobs and 15,000–18,000 permanent positions; the long-term lease proposal remains under public scrutiny. Banking: Bank of Maldives posted record nine-month net profit of MVR 1.93 billion, up 26%, and issued MVR 12.1 billion in new loans. It supplied customers with $722 million in foreign currency, as high demand continues to pressure access to dollars. Business climate: The government says foreign-owned wholesale, retail and logistics firms must meet new investment requirements or face enforcement. Moody’s upgraded the Maldives’ credit rating to Caa1 with a stable outlook. Tourism: Maldives businesses took home 36 South Asian Travel Awards, including recognition for Sun Travels, Ocean Group and Kandooma Maldives.

Banking: Bank of Maldives posted a record MVR 1.93 billion profit for the first nine months, up 26% year on year, and issued MVR 12.1 billion in new loans. It also handled USD 2.86 billion in international payments and supplied customers with USD 722 million, as foreign-currency demand remains high. Credit Outlook: Moody’s upgraded the Maldives to Caa1 with a stable outlook, citing debt repayments and stronger foreign-exchange buffers. Business Rules: The government says foreign-owned wholesale, retail and logistics firms that missed new investment requirements now face enforcement. Rasmale’: Eagle Hills says it will initially fund 5,000 proposed homes, an investment of about USD 500 million, and has invited Maldivian businesses to participate; the final agreement is not yet signed. Tourism and Energy: Industry leaders have raised tax and foreign-exchange pressures with the government, while a forum discussion highlighted financing options for resort solar and battery projects.

Banking: Bank of Maldives posted a record MVR 1.93 billion profit for the first nine months, up 26% year-on-year, and disbursed MVR 12.1 billion in new loans. It also supplied customers with USD 722 million in foreign currency; inflows are expected to strengthen with peak tourism season. Credit rating: Moody’s upgraded the Maldives to Caa1 from Caa2, citing debt repayments, stronger foreign-exchange buffers and continued access to financing. The outlook is stable. Rasmalé: Eagle Hills says it will initially fund 5,000 homes, an investment of about USD 500 million, and has invited Maldivian businesses to participate. The final agreement is still pending, and the developer says it will respect local laws. Tourism: The Maldives won 36 South Asian Travel Awards, including recognition for resorts, transport providers and travel agents. Digital payments: Online shopping limits tied to scarce US dollars remain a public concern; the President says work is underway to address the challenges.

Banking & Forex: Bank of Maldives posted a record MVR 1.93 billion profit for the first nine months, up 26%, and issued MVR 12.1 billion in new loans. It supplied customers with USD 722 million over the period and expects foreign-currency inflows to rise as peak tourism season begins. Credit Rating: Moody’s upgraded the Maldives to Caa1 from Caa2, with a stable outlook, citing major debt repayments and stronger external buffers. Rasmale’ Investment: Eagle Hills says it will initially fund 5,000 housing units, an investment estimated at USD 500 million; the final agreement is still pending. Tourism: The Maldives won 36 South Asian Travel Awards, including Leading Adventure Destination, while industry discussions continue over tax and foreign-exchange pressures. Atoll Banking: Maldives Islamic Bank opened a sales centre and ATM in Sh. Funadhoo, expanding access to cash services for residents and businesses.

Sovereign Finance: Moody’s upgraded the Maldives to Caa1 from Caa2, with a stable outlook, citing lower near-term default risk after major debt repayments and stronger foreign-exchange inflows. Rasmalé Investment: Eagle Hills chairman Mohamed Alabbar says Maldivian businesses can invest in and win contracts from the proposed waterfront and marina project, which he says will create jobs and tourism opportunities. Tourism Pressure: TGST revenue was down 1.4% year-on-year as resort leaders raised concerns over tax and foreign-exchange rules; a reported delay to the 17% tax on overseas travel sellers still lacks formal confirmation. Guesthouse Finance: SME Digital launched USD-repayable tourism loans at a 7.5% annual profit rate, offering up to MVR 10 million for guesthouse development, upgrades and working capital. Workforce Rules: Foreign nationals entering on visas other than work visas can no longer switch status to take up employment, a change that may affect businesses reliant on overseas workers.

Tourism & Trade: Bangladesh has called for closer cooperation with the Maldives in tourism and fisheries, including opportunities to grow exports of Maldivian tuna and other seafood. Tourism Taxes: TGST receipts reached MVR 8.06 billion by October 1, down 1.4% year on year, even as overall state revenue rose. Industry leaders are seeking broader consultation on tax and foreign-exchange rules; reports that the 17% tax on foreign travel firms may be delayed until April 2027 remain unconfirmed. Guesthouse Finance: SME Digital has launched USD-repayable financing for guesthouses, offering rates of 7.5% and loans of up to MVR 10 million over 15 years. Foreign Exchange: Police searched four expatriates and a Maldivian in an investigation into unlicensed banking and currency exchange, as authorities step up action against black-market dollar trading.

Tourism Taxes & FX: Resort leaders are seeking clearer rules and wider consultation on foreign-exchange conversion and tourism taxes. UK travel groups welcome reports that the 17% tax on overseas travel sellers has been delayed until April 2027, but say they are still awaiting official confirmation. Public Finances: Tourism Goods and Services Tax revenue was down 1.4% year on year as of October 1, even as total state revenue rose 1.8% and spending climbed 18.2%. Guesthouse Finance: SME Digital has launched US-dollar repayable loans at a 7.5% annual profit rate, offering up to MVR 10 million over 15 years for guesthouse development, upgrades and working capital. Currency Controls: Police searched a shop and residence while investigating suspected unlicensed banking and foreign-currency exchange. Tourism Demand: A new Dubai–Malé private jet route is targeting luxury travellers, with one-way charters starting at USD 32,000. Housing: HDC says only about half of more than 12,000 Hulhumalé housing tenants are paying rent.