The Maldives, which is facing an economic crisis, is developing a $9 billion blockchain hub to mitigate its financial woes. MBS Global Investments, a Dubai family office, has pledged to invest $8.8 billion in developing a “blockchain and digital assets” financial hub in the island nation within five years, The Financial Times reports.
The investment is also meant to help fight the nation’s impending debt issues, with the investment likely exceeding the Maldives’ $7 billion GDP annually. Finance Minister Moosa Zameer said the nation had to move away from tourism and fish exports, as “debt falling due in the next two years was the largest challenge.” Zameer sees the blockchain project as being able to solve the country’s economic woes.
Why the Maldives?
On Sunday, the Maldives government and MBS Global Investments signed the agreement in a joint venture deal. The family office, which has assets of approximately $14 billion, is headed by Qatari Sheikh Nayef bin Eid Al Thani. To fund the project, the company will use its network of high-net-worth individuals and family offices to create a consortium. MBS CEO Nadeem Hussain also confirmed that over $4 billion to $5 billion worth of firm commitments have already been locked in.
Details about the Project
The Maldives International Financial Centre, located in Malé, will be 830,000 sq meters in size and employ 16,000 individuals. The master plan of the project is expected to triple the country’s GDP within four years and earn more than $1 billion in revenue by the fifth year. The move comes after India’s $760 million bailout of the Maldives to help the nation’s sovereign default. Zameer admitted that India and China both had significant roles in the nation’s economic development but stressed that the MBS deal provides a “different” business model compared to conventional borrowing.
