The Maldives has achieved remarkable economic growth over the past 50 years through its strategic focus on tourism, leveraging its natural resources like fisheries, and making targeted investments in infrastructure. However, to achieve a $100 billion economy by 2050, the Maldives will need to focus on several key growth areas, including economic diversification, sustainable development, infrastructure improvements, and regional integration. Currently, the Maldives’ economy is heavily reliant on tourism and fisheries, so significant efforts will be needed to expand into other sectors, attract investment, and enhance productivity. This piece outlines strategies that could help the Maldives reach its $100 billion GDP target.

 1. Diversification of the Economy

The Maldives needs to reduce its dependency on tourism and fisheries by developing new and emerging sectors:

Renewable Energy: With abundant solar and wind resources, the Maldives can become a regional leader in renewable energy. Investing in green technologies will reduce energy imports, create jobs, and potentially open up export markets for clean energy solutions.

Technology and Innovation: By developing a digital economy, the Maldives can attract investments in sectors like fintech, e-commerce, artificial intelligence, and tech start-ups. The Maldives could position itself as a regional tech hub by creating a conducive environment for innovation, supported by high-speed internet and education.

Marine and Aquaculture Industry: Expanding the fisheries sector into value-added products such as processed seafood and aquaculture (such as tuna farming) could provide substantial export revenues. The Maldives could also explore opportunities in sustainable ocean-based industries like algae farming, eco-tourism, and marine biotechnology.

Financial Services and Islamic Finance: Developing a financial sector and capital markets, especially Islamic finance, could diversify the economy and attract regional investors. Establishing a well-regulated financial hub could serve the larger South Asian and Middle Eastern markets.

 2. Sustainable Tourism Growth

Image: Facebook/Jumeirah Maldives Olhahali Island
Image: Facebook/Jumeirah Maldives Olhahali Island

Tourism remains a vital part of the Maldives’ economy, contributing around 30% of GDP and 60% of its foreign exchange earnings. However, growth should be sustainable:

Luxury and Eco-tourism: The Maldives should continue to focus on high-end tourism and eco-tourism to attract global visitors who seek unique, sustainable travel experiences. Diversifying tourism offerings beyond resorts to include cultural, heritage, adventure, and wellness tourism will help mitigate risks from external shocks.

Tourism Infrastructure: Upgrading airport facilities, seaports, and expanding regional connectivity can make the Maldives a central hub for tourists travelling across the Indian Ocean. More direct flights, improved connections to key markets (such as China, India, Europe, and the Middle East), and enhanced visitor services will boost tourism.

3. Investing in Human Capital

Graduates lift their caps at a graduation ceremony. | Photo: PSM

Human resources development is essential for future growth:

Education and Skills Development: Improving education, especially in STEM (science, technology, engineering, and mathematics), vocational training, and leadership, is vital. A highly skilled workforce will help drive innovation in technology, services, and sustainable industries. Collaboration with international institutions for world-class education and skills programmes will help meet the demands of a diversified economy.

Healthcare and Wellness: The Maldives can leverage its natural beauty and health-related industries, such as wellness tourism, to become a leading global destination for medical tourism and rejuvenation services. Expanding the healthcare sector would also enhance productivity by improving quality of life and reducing medical costs.

4. Infrastructure Development

Aerial view of the China-Maldives Friendship Bridge. (Photo: Xu Fudi)
The China-Maldives Friendship Bridge. (Photo: Xu Fudi)

Robust infrastructure is key to economic growth:

Transportation Networks: Expanding and modernising transportation, especially inter-island connectivity, will be vital. Investing in sustainable transport options like electric vehicles, public transportation, and improving ports will enhance efficiency and lower transportation costs.

Urbanisation and Smart Cities: Developing urban centres with smart city infrastructure, including sustainable housing, public spaces, and green energy solutions, will attract international investments. Establishing economic zones with cutting-edge infrastructure for businesses, especially in technology and finance, can attract both foreign direct investment (FDI) and enhance domestic productivity.

5. Capitalising on Regional and Global Trade

The Maldives is strategically located between Asia, the Middle East, and Africa, which could be leveraged for trade:

Trade and Export Expansion: The Maldives should work to strengthen its regional and global trade relations. Developing key export industries, including seafood, agricultural products, and renewable energy, can contribute significantly to the GDP. The Maldives could pursue trade agreements with ASEAN, the Gulf Cooperation Council (GCC), and other regional trade blocs.

Infrastructure for Export Growth: Improving port facilities and reducing trade barriers will be essential for facilitating export growth. The Maldives should seek to increase the capacity for shipping and logistics, particularly in the context of ocean freight, fisheries, and agricultural exports.

6. Sustainable Development and Climate Resilience

Dense vegetation covers Keylakunu Island in Haa Dhaalu Atoll, a designated protected island. | Photo: Ministry of Climate Change, Environment and Energy

Given its geographic vulnerability to climate change, the Maldives should prioritise sustainable development that ensures long-term growth and resilience:

Climate Change Adaptation: Investments in climate change adaptation measures—such as coastal protection, smart agriculture, and renewable energy—will help protect the economy from the impact of rising sea levels and extreme weather. This will ensure that sectors like tourism, agriculture, and fisheries remain viable in the long term.

Sustainable Resource Management: Ensuring that natural resources like fish stocks, water, and land are managed sustainably will safeguard livelihoods and contribute to economic stability. Supporting sustainable agriculture, renewable energy, and conservation efforts will enhance the long-term sustainability of the economy.

7. Attracting Foreign Investment

To reach a $100 billion economy, attracting foreign direct investment (FDI) is crucial:

Investment Incentives: The government can offer incentives such as tax breaks, business-friendly regulations, and streamlined bureaucracy to attract foreign investors. Setting up Special Economic Zones (SEZs) for specific sectors like technology, financial services, and manufacturing can create attractive investment opportunities.

Public-Private Partnerships (PPPs): Collaborations between the public and private sectors will help fund large-scale infrastructure projects such as airports, ports, and renewable energy. Encouraging global companies to invest in the Maldives’ emerging sectors will bring in capital and expertise.

8. Regional Cooperation and Global Partnerships

Image: X/@Portmv

Strengthening Regional Cooperation: The Maldives should continue strengthening partnerships with neighbouring countries, particularly in the Indian Ocean region. This could include deeper integration in organisations like SAARC (South Asian Association for Regional Cooperation) and increasing cooperation in sectors like tourism, trade, and fisheries.

Global Partnerships and Branding: Building a strong international brand focused on sustainability, luxury tourism, and innovation will enhance the Maldives’ global presence. The Maldives can actively participate in global forums to position itself as a leader in sustainable tourism, ocean conservation, and renewable energy.

In conclusion, achieving a $100 billion economy by 2050 requires the Maldives to implement a clear and diversified growth strategy. With a focus on renewable energy, technological innovation, sustainable tourism, and strategic infrastructure development, the Maldives has the potential to grow into a high-income economy. Fostering a business-friendly environment, investing in human capital, and securing key partnerships can help the Maldives achieve a sustainable and resilient economic future.

Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank. He has keen interest in Maldives’ growth and well-being of its people. The views expressed are personal.