Under President Dr. Mohamed Muizzu’s leadership, the Maldivian government is closely evaluating the repercussions of the Middle East crisis on the nation’s economy. In a X post, Finance Minister Moosa Zameer indicated that the ongoing geopolitical volatility could affect energy markets, food costs, and overall financial stability.
Minister Zameer confirmed that the Ministry of Finance—alongside relevant institutes—is continuously tracking global price fluctuations, inflationary pressures, and potential trade disruptions. These efforts aim to detect emerging risks and mount timely policy responses.
Key Facts & Government Response
- The spillover from Middle East instability may impact energy import costs, a significant concern for the Maldives, which depends largely on imported fuel for transportation and power generation.
- Disruptions in shipping lanes or production could lead to food price spikes, threatening national food security.
- Government institutions are pooling data on inflation trends and supply chain bottlenecks to inform monetary, fiscal, and trade strategies.
The Finance Minister reiterated the administration’s firm commitment to maintaining economic preparedness and protecting the livelihoods of all Maldivians. “We remain dedicated to being proactive and safeguarding public interests,” he affirmed.
Since September 2024, Minister Zameer has overseen fiscal policy under President Muizzu, a period marked by increased focus on economic diversification and resilience . Given the potential for external shocks due to geopolitical turmoil, Maldives’ status as a small island economy reliant on imports exposes it to sharp price swings—highlighting the importance of strategic monitoring.
Next Steps Monitored by the Government
- Data-driven warnings – issuing public advisories if global disruptions reach critical thresholds.
- Economic policy tools – considering adjustments in subsidies, tariff relief, or budget reallocation to support vulnerable sectors.
- International engagement – leveraging diplomatic and economic ties to ensure steady import channels and oil procurement.
As global tensions persist, the government’s focus remains on early detection and decisive action—ensuring that the Maldives stays capable of weathering international economic storms and continuing its development trajectory.
