The Maldives, an archipelagic nation in South Asia, is currently working on establishing an $8. 8 billion blockchain hub that could help diversify its economy beyond tourism, according to a report published by the Financial Times on Sunday. This ambitious endeavor will be funded with the assistance of MBS Global Investments, a $14 billion family office based in the United Arab Emirates. Earlier today, a joint venture agreement was signed between the Dubai-based family office and the Maldivian government. The blockchain project is anticipated to significantly benefit the Maldives by addressing its heavy reliance on tourism. It could potentially boost the country’s GDP by 200% within four years and generate thousands of new jobs. Tourism drives roughly 30% of the Maldives’ GDP, as the nation is renowned for its luxurious resorts that attract visitors worldwide. In addition, the Maldives has a significant fishing sector, which contributes about 10% of the GDP.

The country is especially known for yellowfin tuna and skipjack, exporting mainly to the EU, Japan, and Thailand. Despite these industries, the Maldives faces severe economic challenges, with public debt exceeding its GDP, currently estimated at $7 billion. The nation also grapples with fiscal deficits due to high government spending. The new blockchain initiative may help ease these pressures. Finance Minister Moosa Zameer told the Financial Times that the $9 billion hub offers a potential solution to the country’s current economic difficulties and could help avoid a possible default.