President Dr Mohamed Muizzu has officially declared Project Solar City as the Maldives’ first Special Economic Zone (SEZ), marking a major milestone in the country’s economic development strategy.

The declaration follows Presidential Decree No. 1/2025, issued earlier this year, which outlines the permitted economic activities and minimum investment requirements for SEZs under the Special Economic Zones Act (Act No. 24/2014). The decree also provides investment incentives for the project developer and includes maps delineating the zone’s geographic boundaries.

On Tuesday, an Investment Agreement for Project Solar City was signed between the Government of the Maldives and APM SPV Private Limited.

Designated as a High Technology Park, Project Solar City will undertake a range of ventures, including the development of a 100 MW floating solar photovoltaic system, a tourist facility with MICE (Meetings, Incentives, Conferences, and Exhibitions) capabilities, a logistics and industrial hub, and real estate projects.

The initiative aligns with the Administration’s target to generate 33 per cent of the Maldives’ electricity from renewable sources by 2028. This transition is expected to save approximately USD 42 million in annual oil costs. The renewable energy component alone is valued at over USD 100 million, with the total project estimated at USD 187 million.

Project Solar City is expected to serve as a catalyst for economic diversification, foreign investment inflow, and sustainable development in the Maldives.