Funding for a dedicated fund to support new small and medium-sized enterprise (SME) startups has been included in the 2027 state budget, along with funding for the development of the Addu SME Trade Facilitation Zone.

The government aims to expand economic development beyond the capital, Malé, by implementing economic projects across different parts of the Maldives.

Addu City, the country's largest populated city outside Malé, is set to benefit from several major infrastructure projects included in next year's budget. These include widening the Addu Link Road, upgrading roads across the city, and implementing other major infrastructure developments.

Presenting the state budget at today's sitting of Parliament, the Minister of Finance said these initiatives would open up new economic opportunities for Addu City.

As part of the government's policy to provide special support and incentives to small and medium-sized businesses, funding for the development of the Addu SME Trade Facilitation Zone has been included in the 2027 budget. The minister said the initiative would provide significant benefits to businesses operating in Addu.

The minister also highlighted the government's commitment to empowering Maldivian youth to become job creators rather than job seekers. In line with this objective, the government has allocated funding in next year's budget to provide financial support for SME startups.

The minister described the initiative as an important step towards building a generation of independent, innovative young entrepreneurs.

"Small and medium-sized enterprises are the backbone of our economy. Behind every small Maldivian business is a Maldivian with the determination to build a brighter future and strengthen the country's economic resilience," the minister said.

In a further measure to support SMEs, reduce their tax compliance burden and encourage business growth, President Dr Mohamed Muizzu has decided to increase the annual revenue threshold for mandatory Goods and Services Tax (GST) registration from MVR 1 million to MVR 1.5 million, effective from 1 January 2027.

The minister also stressed that establishing robust policies to ensure the sustainable use of the Maldives' natural resources remains a key government priority.

The minister said that implementing the law governing uninhabited islands and lagoons would enable these resources to be developed sustainably while ensuring that the benefits reach the Maldivian people.