NEW DELHI, May 12 — The Maldivian Economic Development and Trade Ministry signed an agreement with Dubai’s International Free Zone Authority (IFZA) today to establish an economic and financial services zone.

The memorandum of understanding (MoU), signed by Maldives Economic Minister Mohamed Saeed and IFZA chairman Martin Pedersen, involves collaboration on establishing a special trade zone on Funadhoo island near Male and the Maldives Economic Gateway project at Ihavandhippolhu in the archipelago’s north.

"The MoU will pave the way to diversify and transform our economy,” the ministry said in a social media post.

The Ihavandhippolhu project includes a port, an airport and various financial, educational, commercial, logistics and residential zones.

The Maldives also plans to start a development bank this year.

"We are very confident that we can begin its operations in July,” a local media report quoted the economy minister as saying after the MoU signing.

President Mohamed Muizzu established the Maldives International Financial Services Authority in January this year to develop the island nation’s financial services industry. — Bernama