President Dr Mohamed Muizzu has announced plans to designate Addu City as the Maldives’ first IT-focused development zone, offering rent and tax exemptions to small and medium enterprises (SMEs) for a period of three years.
The announcement was made during the Presidential Statement 2026, delivered at the opening of the year’s parliamentary session on Monday.
Addressing lawmakers, President Muizzu said the government has decided to open selected regions of the country for targeted investment, supported by time-bound incentives aimed at strengthening and expanding SMEs. These measures, he said, are intended to accelerate business growth, encourage innovation and create new employment opportunities.
Under the plan, businesses operating in designated areas will be granted exemptions from a range of payments, including land rent, income tax and other applicable charges. President Muizzu said Addu City — including Hulhudhoo and Meedhoo — will be the first region to benefit from the initiative, with the incentive period set to run for three years beginning 1 January 2027.
The President said legal, administrative and technical preparations required to implement the scheme will be completed during the course of this year.
He expressed confidence that the initiative would contribute significantly to economic development in the southern region, noting that the incentives are expected to support SME expansion, generate jobs and deliver broader economic benefits to the country.
Inviting local and international investors to participate, President Muizzu said the government envisions Addu Atoll emerging as a national hub for information technology and digital services, marking a new phase in regional economic development.
