Indian Council of World Affairs

Abstract: The Maldives is trying to follow a Maldives First Policy and has been reaching out to various countries within the region and beyond to explore possible avenues for cooperation in the economic, security, and investment arenas. In this context, its growing relations with Saudi Arabia assume importance. 

Introduction 

The government of the Maldives, helmed by President Muizzu, has been trying to follow a “Maldives First” policy. It has been reaching out to various countries within the region and beyond to explore possible avenues for cooperation in various sectors, including trade, investment, security, and defence. As part of its outreach, it is keenly engaging with the Islamic countries, the GCC countries in particular. This was evident when President Muizzu chose Turkey for his first official visit, instead of India, after taking oath as the President of the Maldives on 17^th November 2023, moving away from the earlier trend of visiting “India first” by his predecessors.^[i] On the other hand, the Gulf Cooperation Council (GCC) countries, including Saudi Arabia, are keen to enhance their scope of engagement with the countries in the Indian Ocean Region for securing access to vital trade routes and for potential economic and investment opportunities.^[ii]  In this context, the paper will look into the recent interaction at the bilateral and multilateral levels between the Maldives and Saudi Arabia, the main areas of cooperation, and future prospects.  

Bilateral Engagement

The Maldives and Saudi Arabia formally established their diplomatic ties on 17th March 1981, and in 2015, Saudi Arabia opened its embassy in Male. Since then, the Maldives emerged as a reliable and strategic partner for Saudi Arabia. For instance, during the tenure of Abdulla Yameen’s Progressive Party of Maldives (PPM) government, the Maldives severed ties with Qatar in 2017, after Saudi Arabia had cut ties with Qatar, accusing it of backing extremism and fostering ties with Iran.^[iii] Diplomatic relations were again restored in 2021, under the Maldivian Democratic Party (MDP) government led by President Ibrahim Mohamed Solih^[iv].

Under the present People’s National Congress (PNC) government, high-level engagements between the Maldives and Saudi Arabia reaffirmed the strong bond both countries have nurtured over the years. In October 2024, both countries signed an MoU to strengthen commercial and economic cooperation. The Maldivian Minister of Commerce, Mohd. Saeed, expressed gratitude to the government of Saudi Arabia and described the Memorandum of Understanding (MoU) as a “testament of strong bilateral ties between both countries” and an important initiative to advance “President Muizzu’s long-term economic vision of a diversified and resilient economy.” The Foreign Minister of the Maldives, Dr. Abdulla Khaleel, visited Saudi Arabia in January 2025 to explore possible opportunities for enhancing investments and trade. In June 2025, the President of the Maldives met the Crown Prince Mohammed bin Salman and discussed ways to strengthen bilateral relations and expand cooperation across various fields. ^[v]

Saudi Arabia has been funding generously various projects across multiple sectors in the Maldives through the Saudi Fund for Development (SFD). It provided over $470 million in assistance to the Maldives in sectors, such as tourism, healthcare, housing, fisheries, and transport^[vi]. For example, the SFD has signed an agreement with the Maldives to provide an additional $17 million loan to expand the Velana International Airport in April 2025. It previously extended $200 million in loans for the airport expansion project.^[vii] The expansion of the airport is expected to significantly boost Maldivian tourism and accommodate 7 million passengers annually by 2030.[viii]  The SFD is also involved in developing housing in various atolls and contributed nearly $80 million in development loans for the Hulhumale Island Development project.[ix]

Another crucial part of their bilateral relations is the Hajj diplomacy.  Saudi Arabia opened the “Makka Route” in the Maldives. The initiative is designed to provide high-quality services to pilgrims from beneficiary countries by streamlining travel procedures to visit the holy site.^[x]  The first group of 234 Maldivian pilgrims left for Saudi Arabia under this initiative in May 2025.^[xi] In addition, Saudi Arabia is a preferred destination for Maldivian students to pursue Islamic education. It has financially supported the construction of mosques, and Prince Salman donated $1.2 million to build 10 mosques on the islands.^[xii]

Looking to Enhance Regional Partnership

An important aspect of Maldives and Saudi relations is Maldives’ emphasis on strategic autonomy and its willingness to move away from the regional geopolitics involving China and India. It is diversifying its economic and foreign relations, away from the region, and Saudi Arabia is a preferred partner in this context, given especially the religious or cultural affinity and traditional relations. At the regional level, both countries are part of the Organization of Islamic Countries (OIC). The Maldives is increasingly willing to play an important role in the OIC through various collaborative platforms, such as the first Saudi-Maldives International Forum on Integrity, organised in May 2025.[xiii] The Forum was co-hosted by Saudi Arabia’s Oversight and Anti-Corruption Authority and the Maldives’ Anti-Corruption Commission. Fifty OIC countries have participated in the Forum. The primary agenda of this forum was to deepen bilateral cooperation on integrity-related matters and promote strong government frameworks, accountability, and proper utilisation of government resources.^[xiv]

Saudi Arabia’s keen interest in engaging with Maldives can be seen in the context of its 2030 vision, which emphasises on becoming a global investment powerhouse by diversifying its revenues.^[xv] In this context, the evolving bilateral relations between Saudi Arabia and the Maldives may pave the way for increased economic and financial cooperation with the GCC countries. The recent announcement of the $8.8 billion Maldives International Financial Centre (MIFC) in Malé, in partnership with MBS Global Investments of UAE, in May 2025, is an example in this regard. It promises to provide a financial free zone to attract global financial institutions, fintech firms, and remote workers.^[xvi] With this investment Maldives is hoping to position itself as a leading financial and business hub in the IOR.^[xvii]

The cultural connection is an important aspect of relations, and the Maldives has always looked up to Saudi Arabia as the leader and “Guiding Star of Islamic Ulema”.^[xviii] This friendship has been reflected in the positions taken regarding the recent global developments, including the Palestine issue and the Israel and Iran situation. Both countries have advocated for Palestinian statehood, with East Jerusalem as the capital. The Maldives joined other Islamic nations to ban Israeli passport holders from its territory in the wake of the Gaza war and the “genocide of Palestinian people”.^[xix] The Maldives became the third country in South Asia to ban Israelis after Pakistan and Bangladesh.

Conclusion

The growing partnership between the Maldives and Saudi Arabia indicates that the Maldives wishes to focus more on diversifying its foreign economic and investment relations beyond its neighbourhood as well as the geopolitics of the Indian Ocean Region, and exercise strategic autonomy. It also shows its desire towards asserting its Islamic identity in domestic polity and external relations.

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*Mayuk Kumar Paul, Research Intern, Indian Council of World Affairs, New Delhi.
Disclaimer: Views expressed are personal

References

[i] “Why did Maldives President Muizzu ditch India for Turkey on his first foreign visit?”, November 28, 2023, https://www.indiatvnews.com/news/world/maldives-president-mohamed-muizzu-ditches-india-for-turkey-on-his-first-foreign-visit-pro-china-stance-geopolitical-rivalry-latest-updates-2023-11-28-904798, Accessed on June 19, 2025

[ii] “The Gulf’s Growing Influence Over the Maldives”, November 15, 2023, https://thediplomat.com/2023/11/the-gulfs-growing-influence-over-the-maldives/, Accessed on June 19, 2025

[iii] ‘Maldives Severes diplomatic ties with Qatar”, June 5,  2017, https://presidency.gov.mv/Press/Article/17947, Accessed on June 20, 2025.

[iv] ‘Maldives moves to restore Qatar ties severed over Saudi-led blockade', August 3, 2019, https://www.newarab.com/news/maldives-moves-restore-qatar-ties-severed-over-blockade, Accessed on June 20, 2025.

[v] “Saudi Crown Prince meets Maldivian, Mauritanian presidents to discuss partnership opportunities”, June 7, 2025, https://www.arabnews.com/node/2603754/saudi-arabia, Accessed on June 20, 2025.

[vi] “Saudi Fund for Development Extends $18.61 Million to Boost Velana International Airport Expansion”, April 15, 2025, https://en.maaldif.com/6189/#:~:text=In%20a%20major%20step%20forward,travelers%20visiting%20the%20island%20nation, Accessed on June 21 2025

[vii]  “Saudi Fund Provides Additional $17 Million Loan for VIA Expansion”, April 14, 2025, https://mvrepublic.com/news/saudi-fund-provides-additional-us17-million-loan-for-via-expansion, Accessed on June 23, 2025.

[viii] “Countdown Begins: The New Velana Airport Set to Transform Maldives Travel by 2025”, June 27, 2025, https://letsgomaldives.com/news/countdown-begins-the-new-velana-international-airport-set-to-transform-maldives-travel-by-2025/, Accessed on June 25 2025.

[ix] “Saudi Fund For Development Inaugurates Hulhumale Island Project and Signs Two Development  loan Agreements in the Republic of Maldives, May 17, 2024, https://www.sfd.gov.sa/en/n759, Accessed on June 25, 2025.

[x] “Saudi Arabia launches Makkah Route Initiative in Maldives”, May 27, 2025, https://www.arabnews.com/node/2602383/saudi-arabia, Accessed on June 26, 2025.

[xi] Ibid , Accessed on June 26, 2025.

[xii] Saudi Prince donates MVR 18.4 million to build mosques in Maldives”, October 16, 2014, https://maldivesindependent.com/society/saudi-prince-donates-mvr18-4-million-to-build-mosques-in-the-maldives-90505, Accessed on June 27, 2025.

[xiii] “Saudi-Maldives International Forum On Integrity 2025: Strengthening Integrity And Combating Corruption In The Tourism Sector”, May 6-7, 2025, https://ifi.org.mv/handbook, Accessed on June 27, 2025.

[xiv] “The Kingdom of Saudi Arabia in partnership with the Republic of Maldives Organize the first International Forum on Promoting integrity in Tourism Sector”, May 07, 2025, https://ifi.org.mv/ , Accessed on June 27, 2025.

[xv] “Leadership Messages”  June 23, 2025, https://www.vision2030.gov.sa/en/leadership-messages, Accessed on June 28, 2025.

[xvi]  “Maldives to build $8.8 billion Financial Freezone in Malé to become Indian Ocean business hub by 2030”, May 6,2025, https://www.newsonair.gov.in/maldives-to-build-8-8-billion-financial-freezone-in-male-to-become-indian-ocean-business-hub-by-2030, Accessed on June 29, 2025.

[xvii] Ibid

[xviii] “Maldives’ Balanced Global Outreach”, March 17, 2023, https://www.orfonline.org/expert-speak/maldivess-balanced-global-outreach, Accessed on July 1, 2025.

[xix] “Maldives Joins Saudi Arabia, Malaysia, Pakistan, Iran, Algeria, Bangladesh, Iraq and More in Blacklisting Israel with New Travel Ban on Its Citizens: What You Need to Know”, April 17, 2025, https://www.travelandtourworld.com/news/article/maldives-joins-saudi-arabia-malaysia-pakistan-iran-algeria-bangladesh-iraq-and-more-in-blacklisting-israel-with-new-travel-ban-on-its-citizens-what-you-need-to-know/ . Accessed on July 1, 2025.