In a strategic move to diversify its economy beyond tourism, the Maldives has successfully launched its first international bunkering service at Ihavandhippolhu, generating an impressive USD 7.5 million in revenue since its inception on September 19, 2024. This initiative, spearheaded by Economic Minister Mohamed Saeed, underscores the nation’s commitment to establishing itself as a pivotal maritime hub in the Indian Ocean.
Minister Saeed highlighted these achievements during a recent People’s National Congress (PNC) meeting, emphasizing the government’s proactive approach to economic diversification. He noted that the bunkering service, which began operations in September 2024, has already proven profitable, with ongoing efforts to expand operations and attract investment.
A substantial 95% of this revenue stems from the supply of Very Low Sulfur Fuel Oil (VLSFO), a cleaner fuel option that aligns with international environmental standards. This positions the Maldives as a forward-thinking player in sustainable maritime services.
The bunkering operations are a collaborative effort between the State Trading Organization (STO) and global energy giant Vitol. Utilizing two specialized vessels, the MT Marine Angel and MT Marine Bella, the service ensures efficient and compliant fuel delivery to transiting ships.
Strategically located at Ihavandhippolhu, the Maldives Economic Gateway capitalizes on its proximity to major shipping lanes, offering a convenient refueling point for vessels navigating the Indian Ocean. This geographic advantage is central to the government’s vision of transforming the area into a comprehensive maritime services hub.
Looking ahead, Minister Saeed envisions the bunkering sector contributing up to USD 400 million to the nation’s GDP. This ambitious target reflects the administration’s broader strategy to reduce economic reliance on tourism and tap into the lucrative maritime industry.
In support of this vision, the government is actively developing related infrastructure and regulatory frameworks. Efforts include drafting new legislation to govern international bunkering activities and seeking foreign investment to bolster the sector’s growth.
The successful launch and rapid revenue generation of the bunkering service mark a significant step in the Maldives’ journey toward economic diversification. By embracing its strategic location and investing in maritime services, the nation is poised to become a key player in the global shipping industry.
