Digital assets are being backed by Gulf investors in the tourism-dependent island nation, as efforts are being made by the Maldives to diversify its economic landscape.
An $8.8 billion blockchain and digital assets initiative in the Maldives will be funded by a Dubai-based family office that oversees assets on behalf of Qatari royal Sheikh Nayef bin Eid Al Thani.
According to a Financial Times report published on Sunday, the agreement—spearheaded by MBS Global Investments—is intended to broaden the economic base of the island nation, whose revenue heavily relies on tourism and fishing, as it faces increasing external debt pressures.
The investment, planned to be implemented over a five-year period, surpasses the Maldives’ total gross domestic product, which was approximately $7 billion in 2023, according to data provided by the World Bank.
The Indian Ocean nation is currently facing debt obligations ranging between $600 million and $700 million for this year, with an additional $1 billion scheduled to mature in 2026.
A shift toward digital finance and global investment is represented by the blockchain initiative, aimed at alleviating economic strain, despite the Maldives presently maintaining minimal to no presence in the cryptocurrency space, as efforts continue to be made by the nation to attract development partnerships from both India and China.
Included in the proposal is the construction of an International Financial Centre covering 830,000 square meters, designed to house 6,500 individuals and create approximately 16,000 jobs, which could provide employment for nearly 3% of the Maldives’ total population.
The project will be funded by MBS Global Investments through a consortium formed from its network of high-net-worth individuals and family offices. According to the report, a total of $4 to $5 billion has already been secured.
A diverse range of sectors—including fintech, real estate, construction, and investment firms—are represented within the current portfolio managed by the firm.
In July of the previous year, funding was allocated by the firm to Varys Capital, a digital asset management company that focuses on investments in early-stage cryptocurrency ventures.
It was observed at the time by Nadeem Hussain, CEO of MBS Investments, that traditionally cautious family offices were expanding their investment mandates to include exposure to blockchain-related opportunities.
The firm’s portfolio also features a special economic zone located on an island near the coast of Malaysian Borneo, and a meeting was held last month with Brunei’s Ministry of Finance and Economy to discuss possibilities for future collaboration.The firm’s portfolio also features a special economic zone located on an island near the coast of Malaysian Borneo, and a meeting was held last month with Brunei’s Ministry of Finance and Economy to discuss possibilities for future collaboration.
