President Dr Mohamed Muizzu has announced plans to establish a national oil reserve as part of the Government's long-term strategy to safeguard the Maldives against the economic impact of the ongoing Middle East conflict.

Addressing a press briefing today, the President said research is already underway, with the Government having decided to carry out the project in three phases across three regions of the country.

President Dr Muizzu estimated that establishing an oil reserve in each region would take between one and a half to two years, with the entire project expected to be completed within approximately five years. Each phase is estimated to cost around USD 150 million.

The President underscored the importance of the initiative, given the Maldives' heavy reliance on imported fuel, describing the establishment of a national oil reserve as a critical step towards energy security.

He assured that each phase of the project would be undertaken in a sustainable and economically viable manner, with decisions made only after a thorough assessment of the costs and benefits involved.

President Dr Muizzu added that the reserve would function similarly to a Sovereign Development Fund, providing a strategic financial and energy buffer for the country. He said further details of the plan would be shared with the media once finalised.