Maldives moves to secure fuel supply, fiscal changes amid Middle East conflict

The Ministry of Finance on Saturday said it will take measures in coordination with the State Trading Organization (STO) to ensure an uninterrupted supply of fuel to the Maldives following developments in the Middle East.

In a statement issued on Saturday night, the ministry said plans are also in place to implement fiscal policy adjustments where necessary to ensure the continued delivery of public services.

The statement follows coordinated attacks by the United States and Israel against Iran earlier in the day, and subsequent retaliatory strikes by Iran on United States military bases in several Middle Eastern countries. As a result, airspace in parts of the Gulf region has been closed, disrupting airline operations to and from the Maldives. The Strait of Hormuz, a key route for global oil shipments, has also been closed.

The Finance Ministry said it is monitoring possible impacts on the Maldives’ financial and economic conditions arising from the situation.

“This ministry is working with relevant state institutions to prepare for potential risks and to take action to limit any effects on the Maldives,” the statement said.

The ministry noted that the Maldives imports most of its fuel through Oman, and said it is working with STO to identify possible challenges to fuel supply chains and to put measures in place to maintain supply.

It also said that, given the Maldives’ reliance on tourism, an assessment is under way to evaluate the impact of the Middle East conflict on tourist arrivals and international transport networks.

Based on these assessments, the ministry said fiscal policy adjustments will be made as required to support macroeconomic stability and ensure the continued provision of public services.

The ministry added that, according to the latest data from the Maldives Monetary Authority (MMA), the country’s foreign exchange reserves are currently at a high level. It said this would assist the government in managing external economic pressures, securing foreign currency for imports, and implementing necessary policy measures.

“The government will take steps to maintain financial stability and support economic confidence,” the statement said.

Separately, the Ministry of Economic Development and Trade said it has begun monitoring supply chain conditions to ensure the availability of essential food items.

President Mohamed Muizzu has also formed a special cabinet committee comprising nine ministers to address challenges arising from the situation.