Indian Council of World Affairs

Abstract: The recent bilateral engagement between the Maldives and the UK is a push towards achieving the People’s National Congress (PNC) government’s broader economic agenda of economic diversification, a resilient economy that is globally connected through partnerships and investments in strategic sectors. 

Introduction 

The Maldives is seeking reliable partners and the several overseas visits undertaken by the President of the Maldives over the past one and half years have emphasized the need for sustainable investments, economic and trade linkages, that take into account the distinct economic, security as well as the geographical needs of the island nation. Therefore, the recent visit (16-18 July 2025) of President Muizzu to the UK assumes importance, as the visit sought investments from the UK, in key strategic sectors. The Maldives, an important Small Island Developing States (SIDS) country in the IOR, was once a British protectorate. It signed a declaration of independence on 26 July 1965 and joined the Commonwealth in 1982. Maldives location near the British Indian Ocean Territory (BIOT) in the Central Indian Ocean, acted as an important strategic factor that shaped six decades of bilateral relations between the two nations. In recent years, the UK has shown keen interest in engaging with the Small Island Developing States (SIDS) countries such as Maldives as part of its Indo-pacific focus. The UK Government’s approach to SIDS was articulated in the UK’s Small Island Developing States Strategy 2022–2026.[1] The strategy seeks to address various challenges faced by the SIDS such as climate change and natural disasters, ocean and biodiversity, economic diversification, debt, inclusive governance etc[2]. Maldives is facing similar challenges and trying to overcome economic, investment and security constraints through international partnerships. In this context the paper will look at briefly the main focus areas of cooperation in the last few decades, the outcome of the recent visit of Mohamed Muizzu to the UK and future prospects. 

Map: Maldives Exclusive Economic Zone (EEZ) and the British Indian Ocean Territory (BIOT)

Source: Chakra Dialogue Foundation

Main Focus Areas of Cooperation

In the last six decades, commerce and trade, people-to-people relations, and human resource development have been priority areas at the bilateral level. Both Maldives and the UK have also been engaging through Commonwealth platforms, such as Commonwealth Heads of Government Meeting (CHOGM) and Commonwealth’s Ministerial Meeting on Small States (CMMSS). The platform has been useful in addressing specific issues pertaining to Maldives such as economic vulnerability, climate action, and access to finance. For instance, Maldives benefited from the Commonwealth Climate Finance Access Hub through the deployment of a Climate Finance Advisor[3]. The Commonwealth Observer Group has been regularly monitoring both the multiparty presidential and parliamentary elections since 2008. The All-Party British-Maldives Parliamentary Group (APPG) an informal, cross-party group formed by MPs and Members of the House of Lords, in Britain parliament is another important platform which is active in raising awareness of key issues faced by the Maldives pertaining to education, climate, economy and politics.  The Commonwealth’s position on internal politics and human rights situation during the Progressive Party of Maldives (PPM) government led to Maldives exit from the Commonwealth in October 2016. It rejoined Commonwealth in 2020, under the MDP government. 

Initiation of Strategic Dialogue

Since 2023, bilateral relations were further enhanced through initiation of Strategic Dialogue between the two nations. The first dialogue which was held on 20 February 2023 and the second dialogue held on 28 May 2025, tried to explored possibilities of economic and trade cooperation, security, governance, democracy, human rights etc.[4] Through this platform both the nations reaffirmed their commitment to leveraging international support towards addressing global issues impacting the SIDS.[5] At the first strategic dialogue, a Working Group on Maritime Security, Working Group on Trade, and a Memorandum of Understanding (MoU) to formalise the Ocean Country Partnership Programme (OCPP) under the UK’s Blue Planet Fund (BPF) were signed.[6]

Besides, the dialogue also became a platform to discuss issues concerning the security of the island nation, such as violent extremism and efforts at counterterrorism. The Maldives follows a zero-tolerance policy regarding terrorism and violent extremism.[7] To address the issue, government is implementing a National Action Plan on Preventing and Countering Violent Extremism (NAP-PCVE) (2020-2024). The Joint Interagency Operations Centre (JIOC) was established in 2021, to coordinate counterterrorism measures and for developing plans in accordance with the National Action Plan.[8] The UK offered assistance to Maldives’ counterterrorism efforts through JIOC by providing technical assistance and conducting counterterrorism live exercises. The Maldives and the UK also initiated discussions to enhance collaboration in the field of higher education this year. Maldivian students have been availing opportunities such as the Commonwealth and Chevening Scholarships. Around, 200 Maldivians are studying at renowned universities in the UK at any given time.[9]

Maritime Security Cooperation

As the Indo-pacific region remains one of the world’s most dynamic and contested geopolitical arenas, the UK as part of its Indo-pacific foreign policy focus is looking for deeper diplomatic and security engagement with the countries in the region including with the SIDS.[10] For example, it joined the AUKUS, along with Australia and the US to enhance collaboration with countries in the region on multiple fronts such as climate, trade, defence, maritime safety and security. As a result, engaging diplomatically with Maldives, a strategically located island nation in the Indian Ocean Region and a bilateral partner, is important for the UK in its efforts at strengthening maritime safety and security, for safeguarding global trade routes and for upholding a rule based order. Collaboration in maritime security figured in two strategic dialogues that were held so far. The MoU signed in 2023 between the UK and Maldives on the International Ship and Port Facility Security Code is one important example of enhanced collaboration in maritime security matters.[11] The MoU also facilitates capacity building and training. The UK Minister of State for the Indo-Pacific, Anne-Marie Trevelyan visited Maldives, on 9^th May 2024, to discuss bilateral and regional opportunities for maritime cooperation.[12] The British Royal Navy’s RFA Lyme Bay ship was docked in Male port in May 2024 for logistics purposes.                                                                                         

The Visit of President Muizzu to UK: Outcome

In this background, the high level discussions held during the visit of President Muizzu to the UK, with key  British officials, including Speaker of the House of Commons Sir Lindsay Hoyle, Foreign Secretary David Lammy and Commonwealth Secretary-General Shirley Ayorkor Botchwey, focused on cooperation in climate adaptation, renewable energy, education, fisheries, sustainable development, tourism, and justice sector reforms[13]. At private audience with King Charles III at Windsor Castle, both leaders discussed ways to further strengthen the longstanding ties between the two nations.[14] During the visit, President Muizzu also acknowledged the UK’s contribution to two of Maldives’ primary industries, tourism and fisheries[15]. He noted that in 2024, over 180,000 British tourists visited the island nation. He also emphasized that, fisheries remain a major source of revenue for the Maldives, with around $20 million of tuna exported annually to Britain. Additionally, investments from Britain have helped in developing the Maldives luxury tourism sector.

Focus on Five key sectors

Most importantly, the visit tried to promote greater investments in five key strategic sectors of Maldives from UK based companies. The first is the creative economy, which includes digital design and content, arts, etc. The government is hoping to generate 15 per cent of GDP by 2030 with the help of creative industries. The second is the digital transformation aimed at modernising governance, enhance service delivery and advance digitalisation of public services. The third focus area is renewable energy. The Maldives is keen to meet the national electricity demand through renewable energy sources by 2028. The fourth is fisheries and ocean innovation. The Maldives Fishery Brand, “From Maldives,” was launched at the Maldives-UK Business Forum on 18 July 2025. Tourism and infrastructure are the fifth focus area, and the government is planning to diversify the tourism experience by expanding into wellness, sports, cruise and halal tourism[16]. President Muizzu, visited the UK in April 2025, to promote Maldives tourism, in collaboration with Liverpool Football Club (LFC) in the UK. Maldives Marketing & Public Relations Corporation (MMPRC), in partnership with LFC, launched a “Visit Maldives” campaign on March 27 in the UK to attract tourists to the island nation.

MoU on Commercial Cooperation

During the visit, the Maldives’ Ministry of Economic Development and Trade signed a MoU with the West London Chambers of Commerce (WLCC) to strengthen commercial cooperation between the two countries. The MoU, which will remain in force for an initial period of three years, is expected to facilitate a comprehensive framework for collaboration across trade, investment and business development.[17] In 2024, bilateral trade between the UK and Maldives stood at $624 million (including exports and imports).[18] By the end of 2023, the FDI from the UK in Maldives was around $52 million.[19] 

Pending Discussion on Bilateral FTA

Before the visit, the opposition MDP however questioned the government’s silence on not pursuing the Free Trade Agreement (FTA) with the UK.[20] The party asked for an explanation from the government on reasons to drop the FTA discussions during the second Strategic Dialogue held this year, despite the progress made under the previous government on trade negotiations. On 8 June 2023, the UK’s Department for Business and Trade announced the launch of a public Call for Input into a prospective goods only FTA with the Maldives[21]. The consultation ran for eight weeks, and the deal was expected to come into effect in 2025. The then MDP government welcomed the announcement, as the Maldives is one of the few countries within the Commonwealth that the UK has not pursued an FTA with.[22] The MDP also emphasised on the need to sign a trade deal with the UK to address stagnant export earnings and rising operational costs. Because, according to the MDP, Maldivian fish exports like yellowfin and skipjack tuna face a 20 per cent tariff in the UK, making them less competitive in the UK market[23], despite, the Maldives reliance on pole-and-line fishing, an environmentally responsible method of fishing. Though the FTA deal was initially expected to be completed by 2025, it was not a major agenda during the state visit of Maldives President to the UK in July 2025.

Assessment

The recent bilateral engagement between the Maldives and the UK broadly supports the People’s National Congress (PNC) government’s broader economic agenda of economic diversification and a resilient economy that is globally connected through partnerships. Getting investments in various innovative and emerging sectors, such as ocean innovation and digital transformation, seems to be a priority of the government to catch up with the technological advancements that are taking place globally through partnerships to boost its economic growth. Amidst the geo-politics of IOR, Maldives foreign policy seems to be navigating the challenges through pro-active diplomacy and by engaging with big and middle powers present in the region to attract investments. The UK, on the other hand, is eager to engage with the Maldives, within the broader context of climate advocacy, rules-based international order and maritime security. The UK is also trying to gain foothold in the region, by partnering with like minded powers in the region, such as the US and Australia, to safeguard its own security interests. The recent agreement the UK had with Mauritius on the Chagos, for instance, will ensure the future of a US-UK military base in Diego Garcia in BIOT, which is near to Maldives EEZ.  These strategic factors may further strengthen bilateral relations, in the near future. 

***** 

*Dr. Samatha Mallempati, Research Fellow, Indian Council of World Affairs (ICWA)
Disclaimer: The views expressed are personal.

Endnotes

[1] House of Commons International Development Committee, “The UK Small Island Developing States Strategy”, Fourth Report of Session 2023–24 Report, May 01, 2024, P.11, https://committees.parliament.uk/publications/44520/documents/221279/default/. Accessed on July 26, 2025.

[2] Ibid

[3] The President’s Office, Republic of Maldives, “Remarks by His Excellency Hussain Mohamed Latheef, Vice President of the Republic of Maldives at the CHOGM Climate Breakfast during the 2024 Commonwealth Heads of Government Meeting (CHOGM)”, 23 October 2025, https://presidency.gov.mv/Press/Article/31934. Accessed August 11, 2025.

[4] Ministry of Foreign Affairs, Republic of Maldives, “Communique of the First Strategic Dialogue between the Maldives and the United Kingdom”, February 20, 2023, https://www.foreign.gov.mv/index.php/en/media-center/news/communique-of-the-first-strategic-dialogue-between-the-maldives-and-the-united-kingdom. Accessed on July 19, 2025.

[5] The Government of UK, “Second UK-Maldives Strategic Dialogue 2025: joint communiqué”, May 29, 2025, https://www.gov.uk/government/news/second-uk-maldives-strategic-dialogue-2025-joint-communique. Accessed on July 19, 2025.

[6] Ibid.

[7] “National Strategy on Preventing and Countering Violent Extremism”, National Counter Terrorism Centre, November 02, 2017, https://nctc.gov.mv/publications/NSPCVE.pdf. Accessed on July 18, 2025.

[8] The President’s Office, Republic of Maldives, “President officially inaugurates Joint Interagency Operations Centre”, October 07, 2021, https://presidency.gov.mv/Press/Article/25924. Accessed on July 18, 2025.

[9] High Commission of the Republic of Maldives, London, “Maldives-UK Bilateral Relations”, https://www.maldiveshighcommission.uk/index.php/political/bilateral-relations. Accessed on July 20, 2025.

[10]   Ben Bland, Olivia O’Sullivan and Chietigj Bajpaee, “Why the Indo-Pacific should be a higher priority for the UK”,  July 2025, https://www.chathamhouse.org/sites/default/files/2025-07/2025-07-22-indo-pacific-priority-for-uk-bland-et-al.pdf. Accessed August 10, 2025.

[11] Maldives Maritime Journal, “Maldives and UK Agree to Strengthen Port Security”, 23 July 2023, https://mmj.mv/maldives-and-uk-agree-to-strengthen-port-security/. Accessed on 26 July 2025.

[12]  Foreign, Commonwealth & Development Office, “UK Minister of State for the Indo-Pacific completes first UK official visit to Maldives in two years”, 12 May 2024, https://www.gov.uk/government/news/uk-minister-of-state-for-the-indo-pacific-completes-first-uk-official-visit-to-maldives-in-two-years. Accessed July 22, 2025.

[13] Ministry of Foreign Affairs, Republic of Maldives, “Secretary of State for Foreign, Commonwealth and Development Affairs pays courtesy call on the President”, 16 July 2025, https://foreign.gov.mv/index.php/en/media-center/news/secretary-of-state-for-foreign-commonwealth-and-development-affairs-pays-courtesy-call-on-the-president. Accessed on July 20, 2025.

[14] Ministry of Foreign Affairs, Republic of Maldives, “King Charles III holds private audience with the President”, 17 July 2025, https://foreign.gov.mv/index.php/en/media-center/news/king-charles-iii-holds-private-audience-with-the-president. Accessed on July 15, 2025.

[15] The President’s Office, “Speech delivered by His Excellency Dr Mohamed Muizzu, President of the Republic of Maldives at the Maldives-UK Business Forum”, July 17, 2025, https://presidency.gov.mv/Press/Article/34282. Accessed on July 20, 2025.

[16] Ibid.

[17] Maldives Financial Review, “MoU signed between the Maldives and the UK to strengthen bilateral trade and investment”, July 19, 2025, https://mfr.mv/public-sector/mou-signed-between-the-maldives-and-the-uk-to-strengthen-bilateral-trade-and-investment. Accessed on July 22, 2025.

[18] The UK Department for Business and Trade, “Trade and Investment Factsheets: Maldives”, 19 June 2025, https://assets.publishing.service.gov.uk/media/68513b42d6806a88ce045447/maldives-trade-and-investment-factsheet-2025-06-19.pdf. Accessed on July 18, 2025.

[19] Ibid

[20] Abdulla Shujau, “MDP Presses Government to Clarify Silence on UK Trade Talks, Fisheries Tariffs”, Maldives Republic, May 28, 2025, https://mvrepublic.com/main-stories-in-maldives/mdp-presses-government-to-clarify-silence-on-uk-trade-talks-fisheries-tariffs/. Accessed on July 19, 2025.

[21] UK Parliament, the Government of UK, “UK–Maldives Free Trade Agreement Update”, June 09, 2023, https://questions-statements.parliament.uk/written-statements/detail/2023-06-08/HCWS832. Accessed on July 16, 2025.

[22] The President’s Office, Republic of Maldives, “The Government welcomes the announcement of the United Kingdom to start public consultations on pursuing a Free Trade Agreement with the Maldives”, June 08, 2023, https://presidency.gov.mv/Press/Article/28456. Accessed on July 17, 2025.

[23] Abdulla Shujau, “MDP Presses Government to Clarify Silence on UK Trade Talks, Fisheries Tariffs”, Maldives Republic, May 28, 2025, https://mvrepublic.com/main-stories-in-maldives/mdp-presses-government-to-clarify-silence-on-uk-trade-talks-fisheries-tariffs/. Accessed on July 20, 2025.