Khulhudhuffushi Port duty-free zone opens, paving the way for northern economic growth

The newly launched duty-free zone at HDh. Khulhudhuffushi Port is set to play a major role in boosting the northern Maldives’ economy, according to Economic Minister Mohamed Saeed.

Speaking to reporters after inaugurating the facility, Minister Saeed said the zone creates a valuable opportunity to grow the country’s re-export business, with infrastructure now in place to store various imported goods—without incurring import duties.

"This is the first-ever free zone in the Maldives," he noted.

The new zone is expected to streamline re-export operations, making it easier for traders to import goods, add value, and then export them again—an important step toward strengthening the Maldives' position in regional trade.

“For example, a trader can bring goods here, store them in the free zone, carry out value-adding processes, and re-export them without the burden of import tax.” Minister Saeed explained.

As part of the government’s broader strategy to enhance the re-export sector, plans are also underway to establish similar duty-free zones in the central and southern regions of the country.

The Economic Minister added that the government intends to expand the existing land allocated for Khulhudhuffushi Port to meet future demand for bonded storage and logistics services.