Dubai family investment group plans to inject $8.8 billion towards transforming the Maldives into a central hub for blockchain technology.
** blocksCHAIN ISLAND: Qatar's Sheikh Nayef bin Eid Al Thani's Family Office Pours $8.8b into Maldives' Digital Economy**
Revamping the Maldives' economy beyond traditional tourism, a Dubai family office helmed by Qatar's Sheikh Nayef bin Eid Al Thani is investing a staggering $8.8 billion into a digital assets and blockchain project.
The project, spearheaded by MBS Global Investments, aims to mitigate the Maldives' economic vulnerabilities, primarily its heavy reliance on tourism and fishing, mounting external debt obligations, and stagnant GDP. The 5-year venture surpasses the nation's total GDP, which was approximately $7 billion in 2023.
This ambitious plan includes building an expansive International Financial Centre spanning 830,000 sq. meters, housing 6,500 residents and generating up to 16,000 jobs, potentially accounting for 3% of the national population.
MBS Global Investments is funding the initiative through a consortium of its wealthiest partners. With $4-$5 billion already secured, the firm plans to pump more funds into this groundbreaking project.
Investing in blockchain and digital assets isn't new for MBS Global Investments. They previously poured money into Varys Capital, a digital asset management firm backing early-stage crypto projects. Their diverse portfolio also includes a Malaysian island special economic zone and a recent collaboration with Brunei's Ministry of Finance and Economy.
So, what does this mean for the Maldives? The island nation, struggling with $600-$700 million in debt due in 2024 and another $1 billion in 2026, is positioning itself to become a global hotspot for blockchain and digital finance. The move could provide much-needed investment, stimulate innovation, and breathe fresh air into the country's stagnant economy.
By Sebastian Sinclair
Daily Dose of Disruption Newsletter
[1] Report by Financial Times[2] World Bank Data on Maldives' GDP[3] Decrypt[4] enrichment data[5] Maldives’ Ministry of Foreign Affairs Statement
- The Maldives is set to become a global hotspot for blockchain and digital finance, following an $8.8 billion investment from Qatar's Sheikh Nayef bin Eid Al Thani's family office.
- MBS Global Investments, the entity behind this investment, aims to mitigate the Maldives' economic vulnerabilities through a digital assets and blockchain project, including the development of an International Financial Centre.
- The venture is expected to generate up to 16,000 jobs, a significant boost to the Maldivian economy, which had a total GDP of approximately $7 billion in 2023.
- MBS Global Investments has a history of investing in crypto projects and digital asset management firms, such as Varys Capital, and also holds interests in other business ventures, including a Malaysian island special economic zone and a collaboration with Brunei's Ministry of Finance and Economy.
- This investment could provide much-needed investment for the Maldives, which faces debt due in 2024 and 2026, potentially stimulating innovation and breathing fresh air into the country's stagnant economy.
