The Maldivian government has launched a series of emergency measures to reduce the economic impact of the ongoing conflict in the Middle East, following the escalation of hostilities involving Iran, the United States and Israel.
Officials say the conflict poses significant indirect risks to the Maldives, particularly because the country relies heavily on Middle Eastern transit routes and imports. Around 30 percent of tourists travelling to the Maldives pass through the region, while more than a third of the country’s imports—including fuel and many essential goods—are sourced from or transported through Middle Eastern markets.
Soon after the conflict escalated on 28 February, the administration of President Dr Mohamed Muizzu established a high-level ministerial committee to monitor developments and assess potential risks to national security and the economy. The nine-member committee was formed within hours of the outbreak of the conflict and has been tasked with coordinating the national response.
The committee is focusing on several key priorities, including maintaining economic stability, ensuring uninterrupted food supplies and preventing Maldivian airspace from being used for any conflict-related activities. Authorities are also working to identify alternative international suppliers for fuel and essential commodities, while exploring new transport routes to avoid disruptions linked to Middle Eastern airspace.
Another key area of focus has been the safety and welfare of Maldivian citizens living in the Middle East, alongside diplomatic engagement with international partners.
By mid-March, the committee had already held multiple meetings to evaluate possible economic impacts and consult with relevant stakeholders. Government assessments suggest that if the conflict continues for a month, the Maldives could face financial losses ranging between USD 85 million and USD 100 million. To help manage this potential shortfall, the government has secured a USD 100 million financial facility from two foreign institutions to support the country’s reserves and ensure the continued import of essential goods.
Meanwhile, the State Trading Organization (STO) has reassured the public that there is no shortage of fuel in the Maldives despite the global surge in oil and gas prices triggered by the conflict.
In a statement to PSM News, STO confirmed that the national fuel supply chain remains stable and that current stocks are sufficient. The company also said two additional fuel shipments are expected to arrive next week, which will further strengthen supply levels.
A shipment of liquefied petroleum gas (LPG) is also scheduled to arrive soon. This is expected to resolve a temporary measure introduced by STO subsidiary Maldive Gas, which had been selling 5-kilogram gas cylinders at discounted prices instead of the usual 10-kilogram cylinders to manage rising demand.
The government has acknowledged that the global increase in oil prices is influencing domestic fuel costs. Finance Minister Moosa Zameer explained that local fuel prices are calculated based on the weighted average cost of imported shipments.
To ease the burden on consumers, authorities say they are exploring ways to use a portion of STO’s profits to subsidise some of the price increases. Officials added that despite the global surge in prices, fuel in the Maldives is still being sold at rates lower than the current international market price.
While acknowledging that global events remain beyond the country’s control, the government says it is continuing to prepare for possible economic disruptions while taking steps to ensure stability and maintain essential supplies for the population.
