The Maldives has reached a major milestone in its tourism diversification efforts with the issuance of the country’s first permit for a Sustainable Township Development under the Special Economic Zones (SEZ) framework. The project represents a major step forward as the Maldives expands beyond traditional resort tourism and accelerates initiatives such as Halal Tourism and multi-sector investment models.

Sustainable townships are large, environmentally prioritised urban zones designed to operate on low-carbon systems, renewable energy and integrated smart infrastructure. To pave the way for such developments, the Government amended the Special Economic Zones Act to allow sustainable city-scale projects to receive special concessions.

A key part of this transformation involves two lagoons earmarked for the township. These lagoons were initially sold by the previous administration to raise funds for reclaiming Giraavarufalhu. One lagoon spans 1,075 hectares, while the other covers 398 hectares. For years, the areas remained economically unproductive, delivering no substantial benefit to the country. The incumbent Government’s policy shift together with agreements made with the project developer has now enabled these lagoons to be utilised for a high-impact, revenue-generating national project

The first Sustainable Township permit has been granted to Crystal Holdings Private Limited by the Board of Investments. Valued at more than USD 790 million, the development stands as one of the largest multi-sector investments in Maldivian history. It is designed to operate on a minimum of 60 per cent renewable energy, reinforcing national commitments to carbon reduction and long-term environmental sustainability.

The township is planned to integrate residential communities, commercial districts, leisure zones, technological hubs and environmentally efficient infrastructure, positioning it as a new growth centre for the Maldivian economy.

Targeted to begin operations by 2028, the project is expected to generate high-value employment, attract long-stay and high-net-worth visitors, diversify regional economic activity and contribute meaningfully to wider national development goals. The approval of this first Sustainable Township marks a pivotal shift as Maldives transitions toward a more resilient and future-focused economic model.