AGP Executive Report

Banking Access in Baa Atoll: Maldives Islamic Bank launched 24-hour ATMs on Kendhoo, Goidhoo and Thulhaadhoo, and inaugurated a full branch in Eydhafushi to expand MVR and USD services. MDP Leadership Shake-up: Hisaan Hussain resigned as Vice President of the Maldivian Democratic Party, citing the party charter and the need for a fresh mandate after Abdulla Shahid’s exit. Foreign Exchange Crackdown Fallout: President Muizzu defended the government’s dollar reforms as research-led, while TEAM and MATI-linked voices warned tourism workers and resorts could face income pressure under the 40% USD deposit rule; Parliament also approved the foreign exchange bill. Tourism Industry Moves: Travel Trade Maldives (TTM) opened in Malé with 130+ resorts and 250+ operators, as Visit Maldives leadership changed with Abdulla Yaasir appointed MD after Ibrahim Shiuree resigned. Infrastructure Update: Muizzu said the Thilamale Bridge project is expected to open to the public within a year. Legal/Local Governance: Police referred the Thinadhoo city-status population fraud allegations to the Prosecutor General’s Office, and the High Court removed MIRA from a procedural appeal case.

Thilamale Bridge Timeline: President Muizzu says the Thilamale Bridge project—covering Malé to Thilafushi—will be completed and opened to the public within a year, citing close monitoring and international oversight. Presidential Outreach: Registration is now open for residents in eight more constituencies to join the “Rayyithunge Adu” meetings with President Muizzu. Foreign Exchange Crackdown: Muizzu defended the government’s dollar reforms on PSM’s “Nation Chat,” saying measures are research-based and aimed at tackling black-market practices; Parliament also passed the Foreign Exchange Bill requiring resorts to convert 40% of USD earnings via banks and banning publication of rates above the MMA level. Tourism Industry Pushback: Tourism workers’ group TEAM and travel agents’ body MATATO warned the reforms could squeeze incomes and disrupt booking systems, while Muizzu’s Tourism Advisor Mohamed Khaleel resigned after the bill’s passage. Tourism Leadership Change: Abdulla Yaasir was appointed Managing Director of Visit Maldives Corporation following Ibrahim Shiuree’s resignation. Tourism Trade Event: Travel Trade Maldives (TTM) 2026 opened in Malé, bringing together 130+ resorts and 250+ operators/agents for two days of deal-making. Diplomatic Appointment: Parliament unanimously approved Jameela Ali Khalid as Maldives ambassador to the UK. Anti-Corruption Legal Move: The ACC said the Proceeds of Crime Bill will strengthen confiscation of criminal property and recovery of illicit gains. Human Rights Commission: Parliament approved Shamoon Hameed for the HRCM seat.

Foreign Exchange Overhaul: Parliament passed the Foreign Exchange Bill requiring resorts to convert 40% of monthly USD earnings via local banks and banning publication or promotion of black-market rates above the MMA rate, with fines for individuals and companies. Tourism Fallout: The Tourism Employees Association says the 40% rule will squeeze workers’ incomes, while MATATO warns GST changes targeting offshore booking platforms could hit small agents and shift business away from the Maldives. Political Appointments: Parliament unanimously approved Jameela Ali Khalid as UK ambassador; it also approved Abdul Azeez as the next Information Commissioner and Shamoon Hameed to the HRCM after the committee gave him the top score. Tourism Leadership Shake-up: Visit Maldives Corporation named Abdulla Yaasir as its new MD/CEO after Ibrahim Shiuree resigned, and Tourism Advisor Mohamed Khaleel also resigned following the foreign exchange bill’s passage. International & Climate: At UNCCD COP17, India’s Bhupender Yadav met Maldives’ Ali Shareef on coastal ecosystem preservation and land restoration; Maldives welcomed the US move removing Syria from the terrorism sponsor list.

Tourism Forex Rules Clash: Parliament rejected an emergency motion by MDP MP Mauroof Zakir over the government’s plan to require resorts to exchange 40% of USD earnings via the MMA, with officials saying the matter is already before Parliament under the Foreign Exchange Act amendments. Human Rights Appointment: Shammoon Hameed topped the parliamentary committee’s scoring for a Human Rights Commission of the Maldives (HRCM) member post, ahead of Samau Ahmed Najeeb. Hospital Security Upgrade: Kulhudhuffushi Regional Hospital launched Special Constabulary services, adding controlled entry systems, revised visiting hours, and CCTV monitoring. Expat Salary Banking: New amendments require expatriate workers’ salaries and contract payments to be deposited into bank accounts in their own names, aiming to bring more foreign transactions into the formal system. Legal Pressure on Media: A court ruled seized items from Adhadhu News cannot be returned while investigations continue, alongside a gag order in the case. International Diplomacy: Maldives welcomed the US decision to remove Syria from the terrorism sponsor list. Regional Connectivity: Air India and Drukair agreed an interline partnership for single-ticket travel across their networks. MNDF Medical Support: A portable hyperbaric transport unit was donated to the MNDF for diving emergency evacuations.

Dollar Rules Debate: Kendhoo MP Mauroof Zakir criticises the government’s plan to require resorts to convert/deposit 40% of USD earnings to the MMA, saying it’s rushed and could worsen the dollar shortage; former President Mohamed Nasheed echoes the warning, arguing the move may hit investor confidence and long-term tourism stability. Expat Banking Push: The Home Ministry amends expatriate employment rules so foreign workers’ salaries and contractual payments must be deposited into bank accounts in their own names (effective after one month), aiming to bring more transactions into the formal banking system and support remittance tax collection. Court on Media Devices: The Criminal Court blocks the return of seized equipment from Adhadhu News while the investigation is ongoing, with a gag order still in place as a High Court challenge proceeds. Housing Finance Update: State Minister Ahmed Nazim says 244 people have received loans under the ‘Hiyaavehi’ low-interest scheme, with 629 more expected to be funded next month. Security & Courts: Parliament receives a bill on seizing criminal proceeds property; separately, the Criminal Court extends detention of an Indian arrested for allegedly using another person’s airport access pass. Sports: FIBA Asia Cup 2029 pre-qualifiers rosters confirmed, with Maldives in Group B alongside Sri Lanka and Kazakhstan. MNDF Medical Aid: A portable hyperbaric transport unit is donated to the MNDF for diving emergency response.

Foreign Workers Regulation: The Home Ministry has amended rules so expatriate salaries must be deposited into bank accounts opened in the employee’s own name at MMA-registered banks, starting one month after publication. Dollar Crisis Debate: Former Economic Minister Fayyaz Ismail and former President Nasheed both warn that government moves to push resorts to exchange 40% of USD earnings could worsen the dollar shortage and hurt investor trust. MMA Rufiyaa Push: MMA Governor Ahmed Munawar says the goal is to shift most transactions to rufiyaa by 2030, with resorts and other dollar payers moving to local-currency salaries and land rent conversions. Tourism Governance: Visit Maldives MD Ibrahim Shiuree has resigned, with no reason given. Housing Delivery: State Minister Ahmed Nazim says 244 people have received ‘Hiyaavehi’ housing loans, with 629 more expected to be funded next month. Elections & Civic Duty: Elections Commission President Mohamed Shakeel marks National Voters’ Day, calling each vote a trust tied to integrity. Sports Corruption Case: Former FAM president Bassam Adeel Jaleel is again moved to house arrest on medical grounds. Tobacco Rules: Duty-free tobacco allowances for adults returning from overseas have been eased, with limits and exclusions for newer products. Rasmalé Update: 716 hectares have been reclaimed under the Rasmalé project, now the largest island by land area. International Spotlight: India’s UPI marks 10 years, with PM Modi calling it a “major turning point,” and noting UPI’s expansion to 11 countries including the Maldives.

Rufiyaa Push: Maldives Monetary Authority Governor Ahmed Munawar says the country should shift all domestic transactions to the Maldivian rufiyaa by end-2030, noting foreign currency still makes up over 40% of money supply and calling for resorts, TMA and even land-rent payments to move to rufiyaa. Dollar Crackdown: Homeland Minister Ali Ihusaan warned that selling dollars at inflated rates on the black market is a criminal offence, citing investigations into seven illegal dealers and about USD 77m moved through the illegal market in nine months. Resort FX Rules Under Fire: The Maldives Association of Tourism Industry (MATI) says a proposed jump to requiring resorts to convert 40% of dollar earnings via local banks is “not viable,” arguing resorts already face heavy dollar costs and that blanket rules risk hitting the sector. Housing Update: State Minister Mohamed Nashid says Rasmalé reclamation has reached 716 hectares out of 1,150, making it the largest island by land area. Legal Ruling: High Court dismissed Medhufushi Investment’s appeal over GST and fines, upholding MIRA’s position that such tax recovery decisions can’t be appealed. Information Commissioner: Parliament’s Independent Institutions Committee approved President Muizzu’s nominee Abdul Azeez Jamal Aboobakr (Azee) for Information Commissioner, with public hearings framed as a last resort. Sports/Justice: Bassam Adeel Jaleel was again moved to house arrest on medical grounds.

Foreign Exchange Crackdown: Maldives Monetary Authority proposes raising the share of resort dollar earnings that must be deposited in local banks from 20% to 40%, and cutting the conversion cycle from once every three months to once a month, with further amendments planned to the Foreign Exchange Act. Black-Market Warning: Homeland Security Minister Ali Ihusaan says selling dollars at inflated rates without permission is a criminal offence, citing MMA rules and warning of fines up to MVR 1m per transaction; he also claims USD 76m was laundered via unlicensed exchangers over nine months. Information Commissioner Fight: Parliament’s Independent Institutions Committee approved State Minister Abdul Azeez Jamal Abubakr (Azee) for Information Commissioner, but Transparency Maldives and MPs raised concerns over a short complaints deadline and whether the nominee is legally eligible for a renewed term. Tourism Currency Compliance: MMA says two resorts failed to meet mandatory dollar exchange requirements—Rahaa Resort (Laamu) and South Palm Resort Maldives (Addu)—while reporting 78% overall compliance. Leadership Change at Visit Maldives: Ibrahim Shiuree resigned as Managing Director of Visit Maldives, with the reason unclear. Regional Policy Spotlight: President Muizzu urged SIDS to be recognized as hubs of innovation and enterprise at the SIDS Global Business Network Forum and Island Investment Forum.

Municipal Governance & Diplomacy: Municipality Minister Abdullah bin Hamad Al Attiyah met Maldives Ambassador to Qatar Adam Shareef Umar to discuss boosting cooperation between the two countries. Language & Culture: Former President Maumoon Abdul Gayoom launched Maldives’ largest English-Dhivehi dictionary, authored by Dr. Hassan Hameed, calling it a major contribution to Dhivehi language and scholarship. Tourism & Hospitality Industry: Sun Siyam Media signed on as official media partner for Food and Hospitality Asia Maldives (FHAM) and the Global Culinary Challenge (Sept 7–9), with 120+ resorts and 600+ participants expected. Central Bank Compliance: MMA named two resorts—Rahaa Resort and South Palm Resort Maldives—for failing to meet mandatory foreign currency exchange rules, urging full compliance. Transparency & Appointments: Transparency Maldives urged Parliament to reopen the process for the Information Commissioner role, arguing nominee Abdul Azeez Jamal Abubakr (Azee) is unsuitable and that the complaint window was too short. Payment Systems Reform: President Muizzu ratified amendments to the Payment Systems Act to establish a national payment switch under MMA oversight. Tax & Revenue Moves: Parliament passed GST changes to make foreign tour operators and offshore booking platforms pay GST under the destination principle, and also doubled withholding tax on foreign construction contractors. Environment & Waste: Muizzu ratified a Waste Management Act amendment ending double taxation on plastic bags and setting new waste management responsibilities and enforcement. Regional Politics in Cricket: ACC elections in Bangkok saw Pakistan-backed candidates win all three board director seats, including Maldives representation, while ACC also approved governance changes and Afghanistan’s eligibility for the presidency rotation. Infrastructure Milestone: India-funded Greater Malé Connectivity Project advanced as the final bridge segment linking Malé to Villingili was set in place, hailed as a major GMCP milestone.

Tax & Trade Policy: Parliament passed GST on services by foreign tour operators and offshore booking platforms, aiming to apply the destination principle, with an estimated MVR 1.61bn annual revenue; it also doubled withholding tax on foreign contractors from 5% to 10% to create a “fairer” bidding environment. Waste & Environment Law: President Muizzu ratified the 1st Amendment to the Waste Management Act, ending double taxation on plastic bags by exempting point-of-sale bag fees and bundles over 50 bags. Infrastructure & Diplomacy: The India-funded Greater Malé Connectivity Project took another step forward as the final bridge segment linking Malé and Villingili was officially set in place, with officials and former FM Abdullah Shahid calling it a symbol of Maldives–India trust. Tourism & Industry: Visit Maldives backed FHAM 2026 (7–9 Sept) to strengthen hospitality, while MATI announced an AI Transformation Programme for tourism and hospitality leaders. Regional Politics/Sport: Maldives President Muizzu congratulated Bangladesh’s newly elected president Mirza Fakhrul; meanwhile, Pakistan-backed panels swept ACC board elections in Bangkok. Public Debate: Former President Yameen warned there’s no economic recovery in the remaining term and criticised moves to curb reporting of black-market USD rates.

Decentralisation Clash: Former President Mohamed Nasheed warned President Muizzu is “contributing to another coup” over a bill that would let the Cabinet take over land currently under local councils, citing Thinadhoo’s 1960s forced resettlement history and arguing decentralisation is the democratic foundation of island development. Local Governance & History: The Thinadhoo 60th resettlement anniversary ceremony also drew Abdulla Yameen, underscoring a sharp debate over “concrete development” versus democratic, people-led progress. Infrastructure & Economy: MACL opened a tender to lease vacant cargo office spaces at Velana International Airport’s new cargo terminal. Tourism Demand: China leads Maldives tourism this year with 250,437 arrivals (18.5% of 1,379,151 total by Aug 18). Public Finance: Government deposited MVR 1.3bn into the Sovereign Development Fund so far this year while debt repayments rose to MVR 9.7bn. Water Security: MWSC plans to start subsea water production from 500m depth by mid-next year, with pipelines to Male’ and Hulhumalé. Appointments: Hassan Faihath was named Deputy Managing Director of FDC, which is running major housing projects. Religion & Nation-Building: Plans are underway to lay the foundation for the Hulhumalé Grand Mosque for the 900th anniversary of Maldives embracing Islam. Mental Health Tech: Maldives’ National Drug Agency is exploring AI tools with China’s Yunnan University to expand mental health and drug rehabilitation support. Regional Diplomacy: Muizzu congratulated Bangladesh’s newly elected President Mirza Fakhrul, hoping to deepen bilateral ties. International Forums: Maldives will host the SIDS Global Business Network Forum and Island Investment Forum on Aug 23–25.

Housing & State Appointments: Hassan Faihath Qudhrathulla, former Gaafu Dhaalu Atoll Council president, has been appointed Deputy Managing Director of Fahi Dhiriulhun Corporation (FDC), which runs social and affordable housing including the 4,000-unit Hulhumalé project. Islamic Heritage Project: The Maldives is set to lay the foundation for the Grand Mosque in Hulhumalé as part of the 900th anniversary of embracing Islam, with land handed over to the Ministry of Islamic Affairs and a complex planned to include a Qur’an museum. Mental Health & Rehab: The National Drug Agency is working with China’s Yunnan University to explore AI-assisted mental health assessments and expand culturally appropriate drug treatment and rehabilitation support. Foreign Relations: President Muizzu congratulated newly elected Bangladesh President Mirza Fakhrul Islam Alamgir, stressing shared history and regional stability. Regional Business Diplomacy: The Maldives will host the SIDS Global Business Network Forum and the inaugural Island Investment Forum on Aug 23–25, drawing 200+ participants from 30+ countries. Currency Policy Debate: MMA Governor Ahmed Munawar says a Rufiyaa-only approach for domestic transactions could help tackle the dollar shortage if fiscal and monetary fundamentals are kept tight. Public Finance Watch: Government spending on salaries, allowances and pensions reached MVR 9.38 billion as of Aug 13, up 11.2% year-on-year. Security/Disaster Update: Two weeks after a supply vessel sank in Huvadhoo Sea, MNDF says search for three missing men continues.

Diplomatic Ties: President Dr Mohamed Muizzu congratulated newly elected Bangladeshi President Mirza Fakhrul Islam Alamgir, calling the vote a major democratic milestone and reaffirming Maldives–Bangladesh cooperation on regional stability and development. Logistics & Trade: Velana International Airport reported Q2 cargo growth, with 18,457 tonnes handled and stronger transshipment and freighter activity as the Maldives pushes to expand VIA’s role as a logistics hub. Currency Policy Debate: Maldives Monetary Authority Governor Ahmed Munawar said the USD shortage could be eased by enforcing Rufiyaa-only transactions domestically, if fiscal and monetary fundamentals are kept stable. Public Finance: Government spending on salaries, allowances and pensions reached MVR 9.38bn as of Aug 13, up 11.2% year-on-year, alongside higher overall recurrent and capital outlays. Education Infrastructure: Work on a new seven-storey CHSE building is set to start toward the end of 2026, with 15 classrooms and science labs planned in Malé. Regional Forums: Maldives will host the SIDS Global Business Network Forum and the inaugural Island Investment Forum from Aug 23–25, bringing 200+ participants from 30+ countries. Foreign Exchange Crackdown: MMA revoked the licence of Express Money Exchange after illegal FX transactions, as authorities tighten action against black-market USD activity.

Public Finance: The Finance Ministry says state spending on salaries, allowances and pensions hit MVR 9.38bn by Aug 13, up 11.2% year-on-year, as personnel costs rose alongside higher overall recurrent and capital spending. Search & Rescue: Two weeks after a supply vessel sank in the Huvadhoo Sea, MNDF says searches for three missing men—including a police officer and rescue personnel—are still ongoing, with prospects described as “slim.” Money & Enforcement: MMA revoked Express Money Exchange’s licence over illegal FX dealings, while Parliament’s Public Accounts Committee backed penalties for advertising or promoting black-market USD rates. Housing Commitments: President Muizzu pledged more housing allocations in the Greater Male’ Region in his final term year, through direct meetings under “Rayyithunge Adu.” Fisheries Support: The Fisheries Ministry launched the Aaruveri Matching Grant Scheme with MVR 278m for energy upgrades, mariculture, processing and value-addition. Trade Policy (India): India eased rules so exporters can invoice and receive payments in Indian rupees for many overseas sales, aiming to expand rupee settlement. Politics (MDP): Mohamed Nasheed accused the government of intimidating civil servants to secure signatures for a petition tied to a bill affecting land under local councils. International: Maldives will host SIDS business and investment forums Aug 23–25, drawing 200+ participants from 30+ countries.

Housing & State Firms: President Muizzu says more people will receive housing in the Greater Male’ Region in the final year of his term, as he meets residents under “Rayyithunge Adu,” while MTCC moves to restart its suspended staff housing project by seeking land from HDC. Foreign Exchange Crackdown: MMA revoked Express Money Exchange’s licence over illegal FX activity, as Parliament’s Public Accounts Committee backs tougher penalties for black-market dollar rate reporting and trading—though ex-minister Andey argues the real problem is enforcement. Fisheries Funding: The fisheries ministry launched the “Aaruveri Matching Grant Scheme,” allocating MVR 278 million under the World Bank-backed TransFORM project, with grants up to 40% for seven fisheries-related windows. Trade Policy & Rupee Settlement: India eased rupee invoicing/export payment rules, allowing eligible exporters to invoice and receive payments in Indian rupees for many destinations—an update that could matter for Maldives-linked trade corridors. Parliament & Land Politics: MDP chairperson Mohamed Nasheed alleges civil servants are being intimidated into signing a petition tied to a bill that would let the cabinet take control of land, lagoons and reefs currently under local councils. Regional Customs Cooperation: Maldives joined Nepal, Bhutan and Bangladesh to exchange pre-arrival customs information under SASEC, aiming for faster clearance and better risk management. Banking & Research: BML was named Platinum Partner of IUM’s ICIA 2026 conference, set for Aug 30–31, focusing on building a learning society for sustainable development. International Spotlight: Maldives contestants won multiple prizes at Saudi Arabia’s major Quran competition in Makkah, including a top-four finish for a Maldivian woman.

Land & SOE Housing: MTCC says it has started steps to restart its suspended staff housing “Hiyaa” project, meeting HDC and asking the President’s Office to secure land after corruption-linked suspension. Dollar & Press Freedom: Parliament’s Public Accounts Committee approved amendments to the Foreign Currency Act to criminalise public reporting/advertising of black-market USD rates, drawing backlash from MDP and the Maldives Journalists Association over media freedom and enforcement. Tobacco Policy: Health Minister Geela Ali says tobacco-control decisions are research-led, including a generational ban and free cessation services, as a five-year national campaign is planned. Fisheries Support: Fisheries launched the World Bank-funded “Aaruveri Matching Grant” (MVR 278m) offering 40% non-reimbursable grants to boost energy efficiency, sustainable production, mariculture, and youth/women-led SMEs. Public Appointments: Pension Administration Office appointed Yazmeed Mohamed as CEO for a five-year term starting 23 Aug after recent top-management resignations. Foreign Affairs: Maldives Foreign Ministry denies claims about consulates in Addu/Bengaluru, saying no island consulate decision has been made beyond Malé. Humanitarian Diplomacy: President Muizzu marks World Humanitarian Day calling for protection of aid workers and condemning obstruction in Gaza. International Trade Facilitation: Maldives signed with Nepal, Bhutan and Bangladesh an agreement to exchange pre-arrival customs data to speed clearance and strengthen controls. Health & Environment: MoU signed for Maldives’ first cancer treatment waste storage facility in Addu, aimed at safe disposal of cytotoxic waste. Security/Regional: UKMTO reports six armed men boarded an oil tanker in the Gulf of Aden and redirected it toward Somalia, urging caution.