Revolutionizing Agriculture: Maldives’ New Economic Zone Set to Enhance Local Produce

The Maldives is set to embark on an ambitious project to strengthen its food security. The Managing Director of the State Trading Organisation (STO) and Maldives Industrial Development Freezone Company (MIDFZ), Shimad Ibrahim, announced that practical work on the Agricultural Economic Zone will begin in early 2026. This development follows a significant agreement signed in March 2024 between MIDFZ and China Harbor Engineering Company Limited.

The project, which includes reclaiming 100 hectares of land, aims to boost local agricultural production and reduce the Maldives’ reliance on food imports. The decision to reclaim land, rather than using smaller islands, was made to ensure the efficiency and scalability of the project. In addition to agricultural activities, the zone will feature a training centre and accommodation blocks for workers.

The Agricultural Economic Zone is expected to produce a variety of crops, including vegetables, fruits, poultry, and chicken eggs. Shimad Ibrahim expressed optimism that this initiative will significantly lower the nation’s dependence on foreign markets, making locally produced food more available and affordable. The project is also seen as a vital step towards addressing food shortages and improving overall food security in the country.

As part of the project, MIDFZ will develop key infrastructure on Uthuru Thilafalhu (UTF), including agricultural parks, freight and passenger terminals, and other essential facilities. The zone aims to attract local and international investors, increase domestic production, and reduce the country’s foreign currency outflow due to food imports.

Ministers Mohamed Saeed and Dr. Aishath Rameela have also highlighted that the initiative will help the Maldives produce 80% of its commonly consumed vegetables and fruits, further decreasing the need for imports and contributing to the growth of the local agricultural sector.