MIDFZ, Capital Asia sign pact for Maldives economic gateway project

Maldives Industrial Development Free Zone PLC (MIDFZ), acting as the master developer for the Maldives Economic Gateway (MEG) project, on Satuday entered a framework agreement with Singapore-based Capital Asia Investments Pte. Ltd. (CAI).

The agreement outlines a collaborative approach to move forward with the MEG project, a key part of the Maldivian government’s economic diversification strategy under the leadership of President Mohamed Muizzu.

According to the Ministry of Economic Development and Trade’s press release, MIDFZ was established in January 2024, bringing together five state-owned entities to focus on strengthening the nation’s economic security.

Alongside the MEG project, MIDFZ oversees initiatives in food security and the creation of strategic storage facilities for essential goods across the Maldives. The MEG project, in particular, is intended to transform the Thavandhippolhu region into a hub for commerce and logistics.

The framework agreement, signed by Shimad Ibrahim, Managing Director of MIDFZ, and Tan Kun Chiao George, Chief Commercial Officer of CAI, lays out steps to define the project’s scope and phased development.

The ministry states that this includes cost assessments, financial evaluations, and the establishment of key commercial terms. The agreement also notes that the MEG project will be developed under the Special Economic Zones framework, providing certain regulatory and tax benefits intended to attract investment.

CAI, a fund management company headquartered in Singapore, manages a diverse portfolio of assets valued at USD 1.3 billion, covering infrastructure, fintech, IT, renewable energy, and hospitality. With a background in equity transactions, private placements, and strategic investments, CAI brings experience that the Ministry believes will be essential to realising the MEG project.

The ministry’s statement emphasises that the partnership represents a “shared commitment to developing a sustainable, environmentally conscious, and socially responsible economic initiative that aims to drive long-term economic growth and resilience for the Maldives.”