The Maldives Inland Revenue collected MVR3.4 billion (US$220 million) in January, up 43.1% compared to the same period last year and the highest amount received in a month since the tax authority was established more than a decade ago.
Bolstered by strong tourist arrivals, MIRA reported an increment in the sales tax for both the domestic and tourism sectors as well as higher receipts from corporate income tax, airport taxes, green tax, and tourism land rent.
The Maldives Tourism Development Corporation unveiled its new logo and website at a ceremony held to mark the government-owned company’s 15th anniversary.
MTDC paid dividends in 2021 for the first time in 11 years as profits rose more than 300% from the previous year. Its main income source is rent from two subleased five-star resorts: Anantara Kihavah Villas and Ayada Maldives. A new property is under development on Haa Dhaal Naagoshi in partnership with Dubai’s R.A.W Galadari. The 1,600-bed resort on the 73-hectare island would be one of the largest single-island properties in the Maldives.
Speaking at the anniversary function in Kurumba resort, Thazmeel Abdul Samad, MTDC’s managing director, said Naagoshi was expected to open in 2024. Whilst Galadari owns an 85% stake in the resort, MTDC would earn a fixed portion of profits under the joint venture deal, he said.
Thazmeel also announced plans to develop and operate a 230-bed resort with an investment of US$35 million. The company is looking for a suitable uninhabited island that can be reached within 20 minutes by seaplane from the Malé airport. Locations under consideration include previously leased islands where development has stalled or new islands put up for bidding last month.
Construction of a new seven-storey office building at a 6,000 square feet plot purchased in Hulhumalé last year is meanwhile scheduled to begin in the second quarter, he said.
The government owns a 47% stake of MTDC with 53% of shares held by the public. The company has more than 24,000 shareholders. Earlier this month, MTDC posted a profit of US$2.9 million for 2022, down significantly from US$10.2 million in 2021. While revenue was higher in 2022, cost of operations grew by 25% compared to the previous year.
The repayment period for Covid-19 relief loans can be extended to eight years and six months upon request, the finance ministry announced. Businesses could also apply to extend the grace period to 19 months.
As part of the government’s economic relief package rolled out in early 2020, the Covid-19 recovery loans were made to large businesses such as resorts to provide working capital and help retain staff. The loans were issued through the Bank of Maldives to be repaid within three years with a six-month grace period, which was later extended to one year and then 19 months.
Some MVR637.8 million (US$41 million) was reportedly disbursed to 184 businesses. Resorts were offered MVR7.7 million whilst MVR1 million was released to other businesses.
Requests for loan rescheduling can be mailed to BML within 60 days, after which the finance ministry “reserves the right to take legal action against non-performing loans (parties with payments overdue for more than 90 days)”.
India’s Renaatus company has been enlisted to upgrade and expand the Gan International Airport in Addu City. The contract was signed “two or three weeks ago,” the airport operator’s managing director revealed at a ceremony held to mark Gan’s 80th anniversary. The airport was built by the British as a staging post for the RAF during the 1950s.
Financed by a line of credit from the Indian EXIM Bank, the US$17 million project in the southernmost atoll “entails the development of duty free shops, lounges, restaurants, ATC, cargo facilities, roads and parking areas as well as the expansion of the passenger terminal with the capacity to handle 1.5 million passengers per annum,” according to the economic development ministry.
Ooredoo Maldives earned a profit after tax of MVR560 million (US$36 million) last year, according to audited financial statements. The mobile and internet service provider – whose shares are listed on the Maldives Stock Exchange – generated revenues of MVR1.9 billion in 2022.
Earlier this month, Ooredoo’s board of directors recommended a dividend of MVR3.04 per share for 2022.
“The recommended 2022 Dividend and the Audited Financial Statements of the Company for 2022 will be proposed for the approval of the Shareholders during the Annual General Meeting (“AGM”) to be held in March 2023. If approved by the Shareholders, we will commence distribution of the 2022 Dividend in March 2023,” according to the Qatari telco’s Maldives subsidiary.
The Maldives Islamic Bank earned a net profit of MVR121 million (US$7.8 million) in 2022, up from MVR79 million in the previous year, according to the bank’s fourth quarter report.
“Although the Net Profit for the quarter dropped to MVR21.57 million from MVR36.86 million registered for Q3 of 2022, we were able to finish the year with the highest Net Profit recorded since the pandemic. Net Asset position per share also improved to MVR33.20 from MVR32.24 recorded during the third quarter,” the report stated.
A collaboration between the Maldives government and the Islamic Development Bank Group, the first and fully Shari’ah compliant bank in the country opened in March 2011.
The civil court ordered resort magnate Ahmed Siyam Mohamed’s Sun Travel company to pay US$24 million owed as damages to Hilton. The local company was ordered to make the payment within two weeks.
The long-running litigation arose from Sun’s abrupt cancellation of a management agreement for the Irufushi resort in April 2013. In 2015, the Singapore International Arbitration Centre ruled in favour of Hilton and awarded damages to the international hotel chain. In early 2022, Sun’s accounts were frozen after the Maldivian courts of appeal upheld the Singapore tribunal’s judgment.
In the latest ruling in the saga, the civil court ordered Sun to settle the dues – including compensation and accrued fines – after Hilton filed a case for enforcement of the arbitration award.
Sun Travels argued at court that the arbitration judgment should not be accepted, claiming that Hilton had fraudulently entered the management agreement. But citing a Supreme Court precedent, the civil court ruled that it lacked the jurisdiction to re-litigate cases decided by international arbitration.
The state-owned Island Aviation Services – operator of the national carrier Maldivian and several domestic airports – invited bids for the expansion of the Noonu Maafaru International Airport’s terminal.
IAS is seeking to expand the terminal’s capacity from 100 to 300 passengers along with new lounges and space for immigration purposes.
The airport in the northern atoll was built with a US$60 million grant from the Abu Dhabi Fund. It is located within proximity of high-end resorts such as Soneva Jani, Velaa Private Island, Cheval Blanc Randheli and Sun Siyam Irufushi.
Maafaru presently caters to several private jets. A new fuel farm recently developed is expected to be operational this month.
In December, the Maldives Transport and Contracting Company was contracted to expand the airport’s runway. The US$27 million project was to be completed in one year.
