The government is to establish a company named Maldives Industrial Development Free Zone.

This was announced by the President’s Office on Tuesday.

President Dr. Mohamed Muizzu reached the decision upon recommendation from his Cabinet of Ministers.

Extensive deliberations were held on a paper presented by the Ministry of Economic Development and Trade during a cabinet meeting held on Sunday.

The Maldives Industrial Development Free Zone will be tasked with the extensive importation of goods from neighboring countries.

It will also be tasked with employing a re-export system to optimize profits.

The Maldives Industrial Development Free Zone will be a collaborative venture of five state-affiliated companies; Maldives Airports Company Limited (MACL), Maldives Ports Limited (MPL), State Trading Organization (STO), Maldives Transport and Contracting Company (MTCC) and the Housing Development Corporation (HDC).

Sunday’s cabinet meeting also saw a decision reached to ensure the company approaches the Board of Investment seeking permission to set up free trade zones, which is a primary objective of the company's formation.

The Maldives Industrial Development Free Zone will also be tasked with the responsibility of enhancing trade activities and promoting economic diversification.

This entails managing import, export, re-export and processing activities, which are necessary for maintaining economic stability and security.