New Duty-Free Services Introduced at Kulhudhuffushi Port to Boost Northern Economy

HDh. Kulhudhuffushi Port, the main port in the northern Maldives, has launched new services including a duty-free zone, aimed at strengthening the northern economy and enhancing trade efficiency. The services were inaugurated today by President Dr. Mohamed Muizzu during a ceremony at the port as part of his visit to HDh. Atoll.

The services, introduced under an agreement between Maldives Ports Limited (MPL) and the Ministry of Economic Development signed on 19 May, include a bonded area for storing key food items, essential goods, and duty-free products, as well as a bonded warehouse service specifically catering to tourist resorts in the north. A special unloading zone for domestic traders was also established to facilitate distribution of goods within the atoll, along with a dedicated area for bulk storage of construction materials such as aggregate and sand.

According to MPL, these services are expected to reduce transportation costs for businesses, help stabilize market prices, and enhance the delivery system for goods across northern atolls. The expansion aligns with President Muizzu’s vision of diversifying and developing the Maldivian economy while increasing economic resilience.

Economic Minister Mohamed Saeed signed the agreement on behalf of the government, while MPL Managing Director Mohamed Rizwan represented the company. The project also includes plans to expand the land area allocated to Kulhudhuffushi Port to accommodate future demand for bonded storage and logistics services, providing northern atolls with the ability to store grains, food items, and other goods at low cost without paying import duties.

MPL noted that the development will serve as a logistics hub for Ha, HDh, Sh, and N atolls, supporting sustainable cargo transportation, reducing costs, and creating broader economic benefits for communities and businesses across the northern region.