World Country Guide

Business Profile

Economy
Small quantities of cereals, fruit and vegetables are grown on the little fertile land available on the islands. Fishing is far more important: tuna fishing accounts for half of the Maldives’ export earnings. The industrial sector has grown substantially since 1980 as a result of major infrastructure investment in desalination plants, refurbished accommodation, generators and air conditioning. Much of this was originally designed for use by the tourism industry, which has also grown rapidly following the decline of shipping, and now accounts for almost one quarter of GDP. Otherwise, there is some light industrial activity, including fish-canning, textiles and boat building, and a small financial services sector which has recently come under scrutiny (along with several dozen other small economies offering ‘offshore’ services). In general, the islands’ economic development has been constrained by their relative isolation and the small size of the domestic market. Hopes that the Maldives might become an oil producer were dashed when a 10-year exploration programme failed to locate deposits in the islands’ territorial waters. The Maldives is a member of the Asian Development Bank and the Colombo Plan.

Business
Since the islands import almost everything, business potential is high, but only on Mal. Most business takes place during the morning. An informal attitude prevails. Appointments should be made well in advance. For business meetings, men normally wear a shirt and tie and a lightweight or tropical suit. Women wear a lightweight suit or equivalent. Handshaking is the customary form of greeting. Office hours: Sun-Thurs 0730-1430. Friday and Saturday are official rest days.

Commercial Information
The following organisation can offer advice: State Trading Organisation, STO Building, 7 Haveeree Higun, Mal 20-02 (tel: 323 279; fax: 325 218; e-mail: sto@dhivehinet.net.mv).

Conferences/Conventions
For further information, contact Kurumba Village, Universal Enterprises Ltd, 38 Orchid Magu, Mal (tel: 442 324; fax: 322 678 or 320 274); or Bandos Island Resort, North Mal Atoll (tel: 440 088; fax: 443 877); or Paradise Island, Villa Hotels, STO Trade Centre, Mal (tel: 440 011; fax: 440 022).