President Dr Mohamed Muizzu has announced that Addu Atoll will be designated as a special incentive zone for small and medium enterprise (SME) investments for a three-year period starting 1 January 2027.

The announcement was made while delivering the Presidential Address 2026.

The President said the Government has decided to open selected areas of the Maldives to SMEs for a specified period, offering extensive concessions to accelerate the growth of the sector. These incentives include exemptions from land rent, income tax, and other rents and taxes paid by direct businesses to the State, along with additional support measures.

He said the first areas to be opened under this initiative will be Addu City, Addu Hulhudhoo and Addu Meedhoo. Legal, administrative and technical arrangements required to implement the scheme will be completed within this year.

The President noted that the initiative is expected to drive SME expansion, create employment opportunities and deliver economic benefits to Addu Atoll and the country as a whole. He also invited local and foreign investors to seize the opportunity to develop Addu Atoll into an IT hub.

In his address, the President said the Government aims to raise national productivity by building on achievements and resources established last year to strengthen the SME sector, alongside new measures and initiatives planned for this year. As part of this effort, 2026 has been declared the “Year of National Innovation”.

The President said his long-term goal is to ensure every Maldivian becomes a productive contributor to national development, expressing hope that the Maldives will join the ranks of developed countries by 2040.