Business Opportunities in Maldives

The Maldives is made up of over 1,190 small, low lying coral islands of which198 islands are inhabited and another 98 are exclusive resort islands. The local population is about 325,000; more than 900,000 tourists arrive annually. There are more than 100,000 expatriate workers. Population distribution varies significantly from less than 150 on remote islands to 103,000in Male?, the capital city, whose total area is just 2 sq. kilometers. The Maldives thrives on tourism and fishing. Construction, telecommunication, shipping, aviation, and banking, support these two primary sectors. Total GDP is about $2 billion. GDP growth averaged 7.5 percent during the past decade, and has helped lift the Maldives to lower middle income country status. The economy is projected to grow at 5.2 percent over the next 3 years. Per capita GDP, estimated around $4,900, is the highest in South Asia. However, there is significant income disparity as many Maldivians on distant islands do not benefit from the revenue produced by the tourism industry and have little opportunity to work or otherwise generate an income. Under a decentralization policy initiated in 2010, the government invested in infrastructure projects at the regional level, facilitating investment in the outer islands. The Maldives faces a chronic budget deficit. . In 2009, the IMF approved a $93million for Maldives, but it is currently on hold due to fiscal concerns. At times there are limits on the availability of foreign currency. Total annual imports are around $1 billion. The Maldives imports most of its requirements, ranging from staple foods to hotel supplies. Trade with the Maldives is centered in Male?, although many tourist resorts directly procure services, supplies, and equipment from overseas suppliers. The Maldives has been a recipient of generous donor assistance for many years.