MALDIVES 2016 MALDIVES London Media 2016 Series SUSTAINABLE DEVELOPMENT The 1,192 coral islands which make up the Republic of Maldives are grouped into 26 natural atolls spread across an area of 90,000 square kilometres in the Indian Ocean, south west of Sri Lanka. Renowned for its natural beauty of white sand beaches and crystal clear lagoons, high-end tourism has fuelled the country’s economic expansion in recent decades. A substantial public investment program is currently underway to bring about much needed upgrades to the country’s infrastructure to keep pace with future development in tourism and facilitate the diversification of the economy. Improving Infrastructure companies in the hospitality industry a free zone, with the ability to cater to an The government has embarked are investing in the Maldives. With the annual capacity of 480,000 TEUs on its full on a number of landmark projects latest amendments to the Tourism Act, completion. The government is currently which in turn are fuelling construction the administration is confident that the in negotiations with an international and real estate development. One key number of resorts will continue to grow.” partner to pursue this project as a joint project is the expansion of Ibrahim Nasr Another priority project is the $300 partnership with the existing port operator, International Airport (INIA) which is million Malé-Hulhulé bridge which will Maldives Ports Limited. currently underway. This $750-800 million link the capital city Malé to the airport and investment, financed by soft loans from neighbouring Hulhumalé island, allowing Facilitating Investment China’s EXIM bank and GCC funds, increased convenience and comfort for While considerable external debt will see the development of a second the 20,000 Maldivians who currently travel has been taken on to finance these runway, expansion of the cargo and sea between the islands by boat. The bridge is infrastructure investments - the Malé- plane terminals as well as a state of the expected to come online by 2018 and the Hulhumalé Bridge is being built with art passenger terminal with the capacity project is ahead of schedule. Reclamation Chinese loans, while several Arab funds to handle 7 million arrivals compared of the 240 hectares of land, for what will have committed to projects within to the current 1.2 million. Together become Hulhumalé Phase II, has already Hulhumalé - private foreign investment is with the development of numerous been completed. It is being developed as also on the rise as the government works smaller domestic airports and harbours, an integrated project with a technology on strengthening the investment climate. it is expected to have transformational park and an international financial centre In 2014, a Special Economic Zones Law implications for Maldives with the ability co-integrated with housing, entertainment, was introduced providing tax incentives, to develop it from purely a niche luxury tourism and commercial developments. increased investment security and a destination to a larger, more diverse The project will directly contribute to relaxed regulatory regime for large-scale market. Plans to develop 100 new islands easing congestion in Malé by motivating government investment projects which are and step up marketing campaigns are young people to relocate to Hulhumalé. proposed to be funded through private already underway and the country hopes The main commercial port in Malé will capital. to sustainably accommodate an ambitious also be relocated to the adjacent industrial “We are witnessing a sustained increase 7.5 million yearly visitors by 2018. island of Thilafushi, allowing the new port in foreign investment into the country, “The Maldives’ tourism is reaching a to accommodate growing trade volumes. and it is the policy of the government whole new level,” stated President Yameen It will combine state of the art technology to increase FDI flows to deliver its in July. “Most of the leading international together with warehousing facilities and strategic priorities. The government SEPTEMBER 2016 © LONDON MEDIA & PUBLIC RELATIONS WLL MALDIVES 2016 MALDIVES ECONOMY pursues a very liberal regime on FDI with 100% foreign ownership as well as no restrictions on repatriation of capital and profits. Furthermore, we also boast the highest investment return in Asia with investors achieving between 7-14%,” says Mohamed Saeed, Minister of Economic Development. “We are in the process of establishing a mercantile court, and believe that Maldives could be a possible base for future arbitrations, given the Maldives’ tourism number of international luxury brands which are already present and trust doing is reaching a whole business in Maldives.” new level. Protecting Paradise The Maldives tourism industry President Abdulla Yameen flourishes in a delicate environmental balance. Threats from global warming and unsustainable tourist activities are Sustainable Seas which Maldivian fisherman fish from,” taken extremely seriously to ensure that Tuna has long been the life blood explains Dr Mohamed Shainee, Minister its marine life, clear blue waters and white of the Maldivian economy. Fishing is of Fisheries and Agriculture, “our bycatch sandy beaches remain well protected. the second largest contributor to GDP is essentially zero, making Maldives tuna a In order to minimise environmental after tourism and is vital to Maldivian unique and premium product. A smaller, impact, all developments in the Maldives livelihoods, particularly outside the capital more sustainable fishing industry also are strictly regulated with a mandatory of Malé. Maldives is the only country in means income is distributed among more environmental impact assessment (EIA) the world that does not allow any fishing fishermen thus sustaining more families”. required before any project starts. methods other than pole and line and Maldivian fishing practices are in sharp Currently, foreign ownership is limited hand line. “This wholly sustainable contrast to methods such as purse seining, to a 25-year lease and only uninhabited one-by-one method, which has been practiced by industrial fishing fleets, islands are released by the government for practiced for generations, protects the and the country plays an active role in tourism development. Resort buildings are sharks, dolphins, turtles and other fish encouraging more fisheries around the not allowed to cover more than 30% of an species which roam freely in the schools world to adopt sustainable practices. ■ island and should not be higher than the surrounding natural vegetation. "Preserving the environment has always been at the top of our agenda. Every project that undergoes development must pass a rigorous environmental impact assessment. No matter the project, all developers must ensure that environmental sustainability comes first," reiterates Thoriq Ibrahim, Minister of Environment and Energy. L to R: Minister of Economic Development, Mohamed Saeed, Minister of Fisheries, Mohamed Shainee; Minister of Environment & Energy, Thoriq Ibrahim JULY 2016 © LONDON MEDIA & PUBLIC RELATIONS WLL MALDIVES 2016 FISHERIES LEADING THE WORLD IN SUSTAINABLE FISHING After tourism, tuna is the major source of income in Maldives and its primary export. It is also an essential part of Maldivian livelihoods. MSC-certified Maldives pole and line caught fish is recognised worldwide as an icon of sustainability. HE Dr Mohamed Shainee, Minister of Fisheries & Agriculture discusses how this major pillar of the Maldives economy is being transformed to attract investment and promote sustainability. HE Dr Mohamed Shainee, Minister of Fisheries & Agriculture How important is the fishing industry to Maldives? fisheries. We announced when we took office that, by end of the Although tourism has officially taken over as the number one five year term, we do not want to be exporting any raw material out GDP contributor, fishing is still extremely important, particularly of Maldives. We want to add value to it, create jobs and realise the in the outer islands. It provides both jobs and protein. If tourism full benefit of our sustainable fish. is the backbone of the country; then fisheries is the bloodline. We Of our 100-120,000 tonne annual catch 40-50% is consumed estimate 20-30% of the population is employed in the fisheries domestically leaving a disposable catch of about 60,000 tonnes. sector. In terms of foreign exchange 80% of exports are fish related When we took office, 30-40,000 tonnes were being exported as raw products so it is also an important contributor to the economy. material. But now we have a plan in place. The state fish company has invested in a cannery with a capacity of 50 tonnes, or more in What is being done to ensure the long term sustainability of two shifts, a private company already has 80 tonne capacity and Maldives’ marine resources? we have given the go ahead to another private operator for 20-25 Maldives is recognised as having the most sustainable tuna tonnes. With all this capacity coming online we hope to absorb our in the world. Our fishermen have been catching fish one by one full disposable catch, which will increase profits by two or three using pole and line and hand line methods for centuries. Today fold compared to raw material prices, whilst providing more jobs. we continue to practice no net, 100% selective fishery resulting in zero bycatch, whereas other methods such as purse seine can What efforts are being made to promote Maldivian fish? generate as much as 20% bycatch. Our method protects the We work together with private companies and the state fish sharks, dolphins, turtles and other fish species which roam freely company to promote Maldives fishery. We have created the in the schools we fish from. Fisheries Promotion Board with a clear mission to reinvigorate the The government takes sustainability extremely seriously as we sector and ensure fishermen are able to earn a decent income. are conscious that we only produce a small quantity of fish which We hold regular promotions at major seafood exhibitions around can be sold in the market at a premium due to its sustainable the world.