In a significant move, State-Owned Enterprises (SOEs) in the Maldives have drastically increased their dividend contributions to the government, with figures for 2025 indicating a more than threefold rise compared to the same period last year. As of April 10, 2025, SOEs have paid MVR 223.7 million in dividends, a staggering 272% increase from the MVR 60 million recorded by this point in 2024.
This sharp uptick in payouts comes at a critical time for the Maldivian government, which is grappling with tight capital expenditure and rising debt repayments. SOE dividends now account for 9% of all non-tax revenues in the first quarter of 2025, up from just 3.2% in 2024. The overall non-tax revenue has also risen significantly, from MVR 1.89 billion in 2024 to MVR 2.48 billion in 2025, driven by higher fees, charges, and tourism-linked revenues.
While these figures suggest improved SOE performance, they also raise deeper questions. Without a detailed breakdown of which SOEs contributed these dividends or the basis for the increased remittances, it’s unclear whether the higher payouts reflect genuine operational profits or extraordinary measures, such as forced remittances, asset sales, or the reallocation of internal reserves. This concern is particularly relevant given that many Maldivian SOEs operate in sectors with limited competition and often receive state support through guarantees, subsidies, or direct budget allocations.
Furthermore, despite the increased dividend contribution, the government’s capital spending remains constrained, with only MVR 736.8 million of the approved MVR 12.4 billion Public Sector Investment Programme (PSIP) utilized by April 10, 2025. This suggests implementation bottlenecks, cash flow issues, or institutional inefficiencies, many of which are linked to the SOEs responsible for executing development projects.
Cycling Money or Genuine Profits?
The current dividend surge must be viewed not just as a fiscal success, but also as a signal of the urgent need for enhanced governance, transparency, and performance tracking within the Maldivian SOE sector. The government cannot afford to rely on opaque financial engineering or one-off windfalls, but rather needs a clearer picture of the return on investment, public service delivery outcomes, and the true value these enterprises generate for the Maldivian economy.
As the government grapples with these challenges, the spotlight will remain on the SOEs and their ability to deliver sustainable, transparent, and accountable performance that truly benefits the nation.
