Maldives Signs Landmark SEZ Agreement with Canada’s Abraxas Power, Secures $680M in Investments
The Government of Maldives has signed its first-ever Special Economic Zone (SEZ) project agreement, partnering with Canadian firm Abraxas Power Corporation for the ambitious Solar City project. The agreement, signed during President Dr. Mohamed Muizzu’s official visit to Singapore, marks a significant milestone in the administration’s push toward clean energy and foreign investment.
Solar City: Pioneering Renewable Energy in the Maldives
The investment deal—valued at USD 187 million—was formalized at the Maldives–Singapore Business Forum by Minister of Tourism and Environment Thoriq Ibrahim and Abraxas Managing Director James Colter Eadie. This project is set to generate 100 megawatts of solar energy, positioning it as a cornerstone of the President’s commitment to deriving 33 percent of national electricity needs from renewable sources by 2028.
According to government projections, the Solar City initiative could save USD 42 million annually in fuel expenses. Completion is targeted for 2027, making it one of the most ambitious green infrastructure projects in the Maldives to date.
Strengthening Ties and Investment Through SEZs
The signing also comes amid broader efforts to attract substantial foreign direct investment into the country through Special Economic Zones. Speaking at the forum, Minister of Economic Development Mohamed Saeed revealed that the Maldives has now secured USD 680 million (MVR 10 billion) in SEZ-related investments—approaching the government's five-year goal of USD 1 billion.
“With the Solar City agreement signed today, we have taken a major step forward,” said Minister Saeed. “We are transforming our economy, stabilizing it, and opening doors for strategic partnerships in renewable energy and beyond.”
Saeed noted that when President Muizzu took office, the country was grappling with significant debt and a fragile economy. Over the past 16 months, he said, bold reforms have helped improve the investment climate and regain international confidence.
Bold Economic Targets and Vision for 2028
In addition to renewable energy goals, Minister Saeed outlined a sweeping vision for economic growth: raising the Maldives’ GDP to USD 150 billion by 2028 and boosting per capita income to USD 17,000 by 2030. These targets are anchored in sustainable development, tourism diversification, and international partnerships.
The Maldives–Singapore Business Forum, attended by prominent investors and business leaders from both nations, also commemorated 50 years of diplomatic ties between the Maldives and Singapore. Awards were presented to individuals and companies that have contributed to fostering bilateral relations and driving tourism growth.
Singapore was hailed as a key development partner, with Minister Saeed calling for continued collaboration. “Singaporean investors have played an integral role in shaping our tourism and hospitality sectors. It is essential that we nurture and expand this partnership,” he added.
Further underlining its focus on investment-driven growth, the Maldivian government also signed a separate investment service agreement with Henley & Partners, a global firm specializing in residence and citizenship by investment. This move aims to attract high-net-worth individuals seeking long-term investment and residency opportunities in the Maldives.
As the Maldives forges ahead with its first SEZ project and lays the groundwork for a renewable energy-driven future, the nation is positioning itself as a serious player in sustainable development and regional investment.
With nearly USD 700 million already secured, the country is on track to achieve its bold SEZ investment targets—bringing jobs, innovation, and infrastructure growth to the island nation while aligning with global climate and energy priorities.