Halal tourism has long remained an underexplored segment within the Maldives’ tourism industry, despite the presence of two critical enabling factors: a well-established tourism infrastructure and the Maldives’ presence as a Muslim nation. This untapped potential represents a strategic opportunity for economic diversification and long-term competitiveness.

The Administration of President Dr Mohamed Muizzu has recognised the importance of capitalising on this opportunity, both to diversify the economy beyond traditional tourism models and to position the Maldives competitively in a global industry where destinations are increasingly vying for the high-value Muslim luxury travel market.

Halal tourism is designed to cater to Muslim travellers seeking services that align with Islamic principles. These services include halal-certified food and beverages, prayer facilities, privacy-oriented accommodation, and the absence of activities or products that are inconsistent with Islamic values. The appeal of this market is increasingly evident, as Muslim travellers seek premium travel experiences without compromising their religious obligations. Destinations capable of guaranteeing such alignment are well positioned to benefit from this growing demand.

Global analysts estimate that the halal and Muslim-friendly tourism market will expand significantly, growing from approximately USD 256.5 billion in 2023 to an estimated USD 410.9 billion by 2032. With Muslim populations increasing across both established and emerging markets, demand for travel experiences that respect Islamic principles is expected to rise steadily over the coming decade. For the Maldives, which already offers world-class luxury resorts, direct international flight connectivity, and a strong reputation for safety and exclusivity, the opportunity to secure a meaningful share of this expanding market is substantial.

This strategic vision began to materialise in June 2025, when President Dr Muizzu announced that the Government would designate a number of islands exclusively for halal tourism development. In line with this policy direction, the Ministry of Tourism and Environment opened bids for islands located across Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, Laamu and Seenu atolls, targeting both domestic and international investors.

To enhance investor appeal, the Government introduced a comprehensive incentive package. This includes a 20 per cent reduction in lease acquisition costs and flexible payment schedules, allowing lease payments to be settled during the first quarters of the fifth and sixth years. Land rent will be waived for any island or lagoon development that is completed, opened, and operational before the end of the designated grace period. In addition, developers may receive duty exemptions of up to 20 per cent of their capital investment for resort development, while furniture, kitchen equipment, electronics, and similar items are eligible for duty-free import.

All halal tourism projects are required to adhere strictly to Islamic guidelines. Transactions involving alcohol or pork are prohibited, and only halal-certified food and beverages may be served. Halal certification is mandatory for all applicable services, and each island must incorporate essential Islamic facilities. These include two separate mosques for guests and staff, which are to be designed as prominent architectural features within the resort development.

The development of halal tourism represents a strategic inflection point for the Maldives’ tourism industry. By leveraging its existing luxury tourism infrastructure and its identity as a Muslim country, the Government is positioning the Maldives to access a rapidly expanding global market while strengthening economic diversification and resilience.