Behind the Shine: The Red Flags and Risks of the Maldives’ $8.8 Billion Financial Centre Deal

A critical analysis of the Maldives government's announcement of an $8.8 billion blockchain-based financial centre project, led by MBS Investments, a little-known Dubai family office. The project's cost exceeds the country's total GDP, raising concerns about fiscal sustainability, hidden liabilities, and lack of institutional substance. The project operates under Special Economic Zone provisions, offering no corporate income tax, withholding tax, capital gains tax, or customs duties, resulting in zero guaranteed government revenue. Construction materials and labor will be imported, and foreign professionals will dominate employment, leading to capital leakage. Domestic firms may re-register in the SEZ to avoid taxes, eroding the tax base. The report warns of potential white elephant and future bailout risks.

A critical analysis of the Maldives government's announcement of an $8.8 billion blockchain-based financial centre project, led by MBS Investments, a little-known Dubai family office. The project's cost exceeds the country's total GDP, raising concerns about fiscal sustainability, hidden liabilities, and lack of institutional substance. The project operates under Special Economic Zone provisions, offering no corporate income tax, withholding tax, capital gains tax, or customs duties, resulting in zero guaranteed government revenue. Construction materials and labor will be imported, and foreign professionals will dominate employment, leading to capital leakage. Domestic firms may re-register in the SEZ to avoid taxes, eroding the tax base. The report warns of potential white elephant and future bailout risks.

A critical analysis of the Maldives government's announcement of an $8.8 billion blockchain-based financial centre project, led by MBS Investments, a little-known Dubai family office. The project's cost exceeds the country's total GDP, raising concerns about fiscal sustainability, hidden liabilities, and lack of institutional substance. The project operates under Special Economic Zone provisions, offering no corporate income tax, withholding tax, capital gains tax, or customs duties, resulting in zero guaranteed government revenue. Construction materials and labor will be imported, and foreign professionals will dominate employment, leading to capital leakage. Domestic firms may re-register in the SEZ to avoid taxes, eroding the tax base. The report warns of potential white elephant and future bailout risks.

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