Minister of Economic Development and Trade Mohamed Saeed has stated that the duty-free zone established at the Kulhudhuffushi Commercial Port will facilitate re-export trade and create new economic opportunities.

He made the remarks on Tuesday while speaking to the media after a ceremony to mark the expansion of services at Kulhudhuffushi Port, which has now been designated as the Maldives’ first duty-free zone.

The Minister said the development was designed to support re-export activities, allowing traders to bring in goods, store them duty-free, and then re-export them at a competitive price. He noted that while the first zone has been established in Kulhudhuffushi, the Government intends to expand such services to the central and southern regions.

In addition, Minister Saeed stated that goods imported into the duty-free area will be stored without the payment of duty, which will only be applied at the time of clearance in line with customs regulations. The facility will also be capable of storing goods requiring controlled conditions, such as dry goods and temperature-sensitive cargo.

The Kulhudhuffushi regional port, developed about 20 years ago to handle imported goods, has faced service delivery challenges over the years. Operated by Maldives Ports Limited (MPL), the port has now been expanded to provide duty-free storage of food staples, essential goods and other food items, bonded warehouse facilities for northern tourist resorts, a dedicated jetty area for domestic vessels, and bulk cargo handling services for the construction industry.

Building on these new services, MPL is set to establish value-adding facilities to further strengthen re-export trade. This will allow goods to be imported into the Maldives, processed and priced locally, and then exported to international markets without incurring duty.

Looking ahead, the Government has also committed to expanding the land area of Kulhudhuffushi Port to meet the growing demand for bonded storage services.