The Maldives, an archiped state in South Asia, are establishing a blockchain center of $ 8.8 billion which could potentially help it diversify from tourism, according to a Sunday report by financial time.
The ambitious project will be funded with the help of MBS Global Investments, a family office of $ 14 billion based in the United Arab Emirates. A joint venture agreement between the Dubai Family Office and the Maldives was signed earlier during the day.
The Blockchain initiative should be a boon for the Maldives, fixing its over-dependence on tourism. This potentially leads to a 200% increase in the country's GDP in just four years, creating thousands of jobs.
The economy of the Maldives is mainly based on tourism, which represents around 30% of its GDP. The Maldives are famous for their luxurious stations that attract tourists from around the world.
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The archpelagic state also has a prominent fishing industry, which is responsible for around 10% of the country's GDP. The Maldives are mainly known for the tuna at Alcoas and Skipjack, the EU, Japan and Thailand being its main markets.
However, the country is faced with significant economic challenges, its public debt exceeding its GDP, which is currently 7 billion dollars. In addition, it faces budgetary deficits due to excessive expenses.
The recently announced blockchain pivot could potentially help him alleviate tension. The Minister of Finance, Moosa Zameer, told the Financial Times that the center of $ 9 billion could be a way to get out of the current difficulties. In particular, the ambitious project could potentially help it avoid a possible defect.
