Overview
A tourism economy with heavy debt repayments ahead and a strategic position between India and China.
The Maldives runs on tourism and imported capital. Large external debt repayments, including sukuk maturities, put its foreign exchange position under pressure, and its location makes it a focus of competition between India, China and other Indian Ocean powers.
We help investors, lenders and operators understand sovereign risk, government policy towards tourism and foreign investment, and the geopolitics of the Indian Ocean.
Sovereign debtTourismIndian Ocean
What we watch
The issues that move the risk picture.
- Sovereign financingExternal debt repayments, reserves and the support of bilateral partners.
- Tourism policyTaxes, land leases and licensing for resorts and operators.
- India and ChinaShifts in alignment and their effect on projects and security cooperation.
- Climate riskSea level rise, coastal protection and the cost of adaptation.
Questions we answer
Typical client questions
A selection of the questions clients bring to us on Maldives.
- How likely is a sovereign default in the Maldives over the next two years, and what would it mean for us?
- How is government policy towards resort operators likely to change?
Discuss Maldives with an analyst.
Book a free 30-minute briefing call. We will give you an initial view where we can, and a written scoping note within two business days.
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