Maldives

The Maldives is a cluster of coral islands and sandbanks located in the Indian Ocean, southwest of Sri Lanka and India. It consists of 1,192 islands grouped into 26 natural atolls, of which approximately 200 are inhabited. The archipelago stretches across the Equator, with India to its north and Sri Lanka to its northeast. Temperatures are generally high throughout the year, and rainfall is influenced by the southwest and northeast monsoons.

The islands of the Maldives originated from the crowns of submerged ancient volcanic mountains. They are grouped into two chains of 26 atolls, with the capital island of Malé located in the eastern chain. The islands are exceptionally low-lying: the average elevation is approximately 1.5 metres above sea level, and the country’s highest natural point is only a few metres above sea level. The Maldives is home to approximately 5% of the world’s coral reefs, which support more than 1,000 species of fish, including manta rays and whale sharks. The country is renowned for its beaches, turquoise waters and marine biodiversity.

Demographic

The Maldives’ population is approximately 530,000. The population is concentrated in Malé and other inhabited islands, while tourist resorts generally operate on separate islands. The country also has a significant expatriate population, particularly in tourism, construction, health care and other service industries.

Dhivehi is the official language of the Maldives. English is widely used in tourism, business and higher education, while Arabic and some South Asian languages are also spoken. Islam is the state religion, and the overwhelming majority of Maldivian citizens are Muslim. Under the Constitution, Maldivian citizenship is linked to Islam, and public practice of other religions is restricted.

Most of the population is urban or semi-urban, particularly in and around Malé. The capital is among the most densely populated urban areas in the world, while the population of many other inhabited islands remains small. The country’s population is distributed across approximately 200 inhabited islands, with additional islands developed as tourist resorts.

History

The earliest traces of human activity in the Maldives date back more than 2,600 years, probably involving settlers and traders from Sri Lanka and India. Located along maritime trading routes linking the Indian Ocean, the Maldives became a strategic centre for commerce. Arab traders significantly influenced the culture and religion of the islands. In 1153, the king converted from Buddhism to Islam and adopted the title of sultan.

The Portuguese occupied Malé in 1558 but were expelled after a guerrilla revolt approximately 15 years later. The Dutch exercised influence over the sultanate during the 17th century. In 1796, after Britain seized Ceylon, now Sri Lanka, from the Dutch, the Maldives came under British protection. This status was formalised in 1887, when the sultan accepted British control over the islands’ external relations and defence.

Under British protection, succession to the sultanate was hereditary until 1932. A new constitution was then proclaimed, making the sultan an elected rather than hereditary ruler and limiting the monarch’s absolute authority. In 1953, the Maldives became a republic after the sultanate was suspended. The first elected president, Mohamed Amin Didi, introduced reforms including nationalisation of the fish-export industry, education reform and measures promoting women’s rights. Conservative opposition and unrest following food shortages led to the collapse of his government, and the sultanate was restored in 1954.

The British military presence continued after the Maldives became internally self-governing. In 1956, Britain established a military base on Gan in the southern Maldives. In 1959, a secessionist movement led to the formation of the short-lived United Suvadive Republic. The Maldivian government ended the secession in 1962.

On 26 July 1965, the Maldives achieved independence from Britain, while allowing Britain continued use of military facilities at Gan and elsewhere. In November 1968, a national referendum abolished the sultanate and established the modern republic. Ibrahim Nasir became president.

The last British troops left the Maldives in 1976, and Maumoon Abdul Gayoom became president in 1978. Gayoom remained in office for 30 years, until 2008. In 1982, the Maldives joined the Commonwealth of Nations.

In 2007, a referendum confirmed that the presidential system should be retained instead of being replaced by a parliamentary system. A new Constitution was adopted in 2008, introducing stronger institutional checks and enabling multi-party presidential elections. Mohamed Nasheed won the first multi-party presidential election and replaced Gayoom.

Key Dates

1153 – Islam replaces Buddhism as the state religion

1558 – Portuguese forces occupy Malé

1573 – Portuguese forces are expelled from the Maldives

1796 – British protectorate established

1887 – British protection is formally recognised

1932 – Constitution proclaimed; the sultan becomes elected rather than hereditary

1953 – Republic established

1954 – Sultanate restored

1959 – United Suvadive Republic established in the southern Maldives

1962 – The secessionist United Suvadive Republic is brought under government control

1965 – The Maldives gains full political independence from Britain on 26 July

1968 – Republic reinstated and the sultanate abolished after a referendum

1976 – Last British troops leave the Maldives

1982 – Maldives joins the Commonwealth of Nations

1987 – Severe tidal flooding affects Malé and prompts major coastal-protection measures

2004 – Indian Ocean tsunami causes extensive damage across the Maldives

2007 – Referendum confirms that the presidential system should remain

2008 – New Constitution adopted; multi-party presidential elections begin

2008 – Mohamed Nasheed becomes the first president elected under the multi-party system

2012 – Mohamed Nasheed resigns as president amid political unrest

2013 – Abdulla Yameen becomes president

2018 – Ibrahim Mohamed Solih becomes president

2019 – Maldives returns to the Commonwealth of Nations

2020 – Maldives records its first COVID-19 cases and enters a period of severe tourism disruption

2023 – Mohamed Muizzu becomes president

2025 – Tourist arrivals reach approximately 2.25 million, a record annual total

Legal System and Government

The Maldives is a presidential multi-party republic in which the president is both head of state and head of government. The president and vice president are elected directly by universal suffrage for five-year terms, and a president may serve a maximum of two terms. The cabinet is appointed by the president and is subject to approval by the People’s Majlis.

The legislature is unicameral. The People’s Majlis consists of members elected from the country’s administrative constituencies. The current president is Mohamed Muizzu, who took office on 17 November 2023.

The Maldivian legal system is influenced by Islamic law, constitutional law and elements of common-law legal practice. The Constitution provides that judges are independent and subject to the Constitution and the law; where legislation is silent, courts must consider Islamic Sharia. The Supreme Court is the highest court, while the High Court hears appeals and certain matters as a court of first instance. Magistrates’ courts operate across the inhabited islands.

The earlier description of a five-member council empowered to affirm or overturn High Court judgments should be removed, as it does not accurately describe the current constitutional structure. Judicial appointments and oversight are governed by the Constitution and the Judicial Services Commission.

Economy

The Maldives is an upper-middle-income economy whose growth depends heavily on tourism, fisheries, construction and related services. Tourism remains the dominant source of foreign exchange and government revenue. In 2025, the country recorded approximately 2.25 million tourist arrivals, around 9.8% more than in 2024.

Economic growth slowed in early 2025, with the World Bank reporting year-on-year growth of 2.5% in the first quarter of 2025, compared with 6.4% in the corresponding quarter of 2024. The slowdown reflected weaker tourism growth and contraction in parts of the non-tourism economy. The economy remains vulnerable to external shocks because the country imports most food, fuel, machinery and manufactured goods.

Tourism and related services generate a substantial share of national output and employment. The sector includes resorts, hotels, restaurants, aviation, marine transport, travel agencies and recreational services. Construction has also expanded because of resort development, housing demand, airport infrastructure and land-reclamation projects.

Fisheries remain an important traditional industry and export earner. Skipjack tuna is particularly important, while yellowfin tuna and other fish products are also exported. Agriculture is limited by the scarcity of arable land and freshwater, although coconuts, vegetables, fruits, tubers and other crops are cultivated on some islands. Manufacturing is concentrated in fish processing, boatbuilding, handicrafts, construction materials and small-scale food production.

Trade

The Maldives’ principal exports are fish and fish products, particularly fresh, chilled and frozen tuna, processed fish and other marine products. Official monetary statistics identify fish exports as a major component of merchandise exports.

The Maldives imports most of its fuel, food, machinery, electrical equipment, construction materials and transport equipment. Its main trading partners include India, China, the United Arab Emirates, Oman, Sri Lanka, Thailand and European markets.

The Maldives participates in the South Asian Free Trade Area and the South Asia Preferential Trade Arrangement. It also maintains preferential trade arrangements with certain Commonwealth countries, including Australia and New Zealand. As a small island economy, the Maldives generally runs a structural merchandise trade deficit, although tourism receipts help offset part of the external imbalance.

Investment Opportunities

The Maldives offers investment opportunities in resort tourism, guesthouses, eco-tourism, marine transport, yacht marinas, fisheries, fish processing, renewable energy, construction, waste management, desalination, digital services and telecommunications.

Tourism remains the most prominent investment sector. Opportunities include new resorts, boutique hotels, guesthouses, wellness facilities, cruise and yacht services, diving operations and environmentally sustainable tourism infrastructure. The government is also seeking investment in projects that improve connectivity between islands and expand airport and harbour capacity.

The fisheries sector offers opportunities in tuna processing, cold-chain logistics, packaging, branding, export distribution and mariculture. Investment in renewable energy, energy storage, desalination, wastewater treatment, recycling and climate-resilient infrastructure is increasingly important because of the country’s geographic vulnerability and dependence on imported fuel.

Other potential areas include ICT, financial services, health care, education, logistics and urban development. Foreign investment rules, land-use rights, tax treatment, sector restrictions and employment requirements should be reviewed for each proposed project. The availability and duration of tax holidays or other incentives depend on the applicable law, investment agreement and project classification and should not be stated as automatic entitlements.

The Maldives’ low-lying geography makes climate adaptation central to investment planning. Projects involving coastal protection, resilient housing, water security, waste management and low-carbon tourism may therefore offer both commercial and public-development value.