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Maldives and UAE sign customs agreement

The Maldives has signed a customs agreement with its largest trade partner, the United Arab Emirates (UAE), which will result in enhanced bilateral cooperation.

The MoU signed yesterday will involve the exchange of data and expertise on consignments, customs policies, and general capacity building as well as cooperation to ensure the security of international supply chains.

The Commissioner General of Maldives Customs Service, Ahmed Mohamed, signed the agreement with Acting Director-General of Federal Customs Authority (FCA), Khalid Ali Al Bustani in Dubai.

Ahmed Mohamed expressed his confidence that the MOU will enable Maldives customs to translate the experience of its UAE counterparts for valuable use as the Maldives works to modernise its operations both in trade facilitation and customs enforcement.

29 percent of the Maldives imports came from the UAE in 2013, making the country the Maldives’ largest source of goods.

UAE authorities reported that two-way trade between the Maldives and the UAE reached AED943 (US$256 million) between 2009 and 2013 – 1.7 percent of which represented exports from the Maldives to the emirates.

The Maldives spends 30 percent of its GDP on importing fossil fuels – with make up around 90 percent of the UAE’s trade – with US$486 million on oil imports in 2012.

The figure is estimated to increase to US$ 700 million by 2020, although the current government is seeking foreign investors for the resumption of oil exploration projects in the Maldives.

As an island nation heavily dependent on imports, the Maldives Monetary Authority’s latest balance of payments projections estimate that the country’s current account deficit will widen to US$562.5 million in 2014, which is equal to 22 percent of GDP.

During the visit to Dubai, the commissioner general along with the accompanying delegates is scheduled to visit Rashed Port, Airport of Dubai, and Jebel Ali Port to witness and learn from the best practices of the UAE, said a Maldives Customs Service press release.

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Four persons arrested for possession of alcohol

Police have last night arrested four male persons for being in possession of 86 cans of beer.

According to the police, the cans were discovered while searching a boat docked at the jetty near the Malé waste yard on Sunday night (June 8).

While the police are further investigating the matter, they revealed that the arrested men include three Maldivians and one Bangladeshi.

The penalty for alcohol possession in the penal code – to be updated next year – is either a fine of between MVR1,000 to MVR3,000 or imprisonment, banishment, or house arrest for up to three years.

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Majlis speaker announces five parliamentarians to lead in his absence

The names of five parliamentarians who will lead parliament in the instance that both the speaker and his deputy are absent, have been announced by Speaker Abdulla Maseeh.

Parliamentary regulations stipulate that the five members must be those who have served for the longest time in the chamber.

The five names are Holhudhoo constituency MP Ali Mohamed, Kanditheemu constituency MP Mohamed Hussain, Hinnavaru constituency and MDP Parliamentary Group Leader MP Ibrahim Mohamed Solih, former speaker and Henveiru Uthuru constituency MP Abdulla Shahid, and Guraidhoo constituency MP Hussain Manik Dhon Manik.

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Parliament Speaker announces majority and minority leaders

Speaker of Parliament Abdulla Maseeh has today (June 9) announced the majority and minority leaders for the current term.

Parliament’s majority leader is the ruling Progressive Party of Maldives (PPM) MP Ahmed Nihan, member for Villimalé constituency, while the minority leader is opposition Maldivian Democratic Party (MDP) MP Ibrahim Mohamed Solih, member for Hinnavaru constituency.

PPM possesses 38 parliamentary seats, while the MDP currently has 25 seats.

Additionally, the Jumhooree Party – which recently left the ruling coalition – has 15 seats, while government coalition partner Maldives Development Alliance holds 5 seats.

The religious conservative Adhaalath Party currently holds one parliamentary seat, while one independent member – for Madaveli constituency – also sits in parliament.

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Road race competitor dies after heatstroke

A doctor has died after suffering heatstroke during the annual Dhiraagu road race on Friday, reports local media.

Dr Abishek Singh, who worked at Malé’s private ADK Hospital, passed away yesterday (June 8 ) reports Haveeru.

The 8th road race – this year dedicated to raising awareness of child protection issues – involved either one or two circuits of the 5km route around the outskirts of the capital. It was not revealed which category Dr Singh was competing.

3000 runners were said to have registered for this year’s race.

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Government submitting bills to Majlis at “remarkable speed”, says PPM group leader

The government has submitted 12 bills to the People’s Majlis today (June 8), local media has reported.

“The government is submitting bills to the parliament at a remarkable speed. We’ll do our best to table these bills in the parliament,” Progressive Party of Maldives Parliamentary Group Leader Ahmed Nihan told Haveeru today.

Having already submitted special economic zones legislation to the Majlis last week, the government was reported to have today introduced bills addressing the issue of referendums as well as amendments to current laws on GST, child protection, MPs’ income, and immigration.

The scope of the government’s legislative agenda was revealed last March when Attorney General Mohamed Anil unveiled a 207-bill plan comprising 98 new bills and 109 amendments to existing laws.

Of the 207 bills, Anil said the government hoped to submit 65 pieces of legislation to the legislature this year once the 18th parliament was sworn in after the elections on March 22.

The government’s ability to secure new legislation was reduced late last month, however, after the split with it electoral ally the Jumhooree Party (JP).

The loss of the JP’s 15 MPs brings the ruling Progressive Coalition’s majority in the house to just one seat, after last week’s signing of independent MP  Abdulla Khaleel. This excludes the support of unofficial partner the Adhaalath Party’s sole MP.

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Jamiyatul Salaf calls on government to reconsider UN peacekeeping deal

Local Islamic NGO Jamiyatul Salaf has called on the government to reconsider the decision to have Maldivian troops participate in the United Nations peacekeeping force.

“Jamiyyatul Salaf rejects this and express grave our concern over this matter to the Maldivian citizens,” said the group.

In a statement issued on Thursday, Salaf called on the Maldivian authorities to “fear Allah and be more concerned about the Muslim Ummah”, requesting President Abdulla Yameen, the People’s Majlis, and the minister of defence reconsider the decision to place “Maldivian Muslims soldiers” among “dubious UN forces”.

Following the signing of an MOU between the Maldives and the UN last week, the Ministry of Foreign Affairs announced that a small contingent of military observers and infantry personnel will be deployed over the next two years.

“Given that history has proved with certainty that armies taking part in the UN forces have to act against Muslims, and that a Maldivian Muslim army is also part of the UN force, taking part in action against Muslims even in that capacity cannot be acceptable under any circumstance,” read the Salaf statement.

“It would be highlighted as harmful and dangerous days in the Maldivian Islamic history. Therefore, this should not even be allowed under Maldivian laws,” said the NGO, arguing that wars against Muslims around the world are waged without any reasonable grounds and that infidels are using biological weapons against Muslims.

Noting that the first priority of the Maldives should be its sovereignty and Islamic unity, Salaf suggested that Maldivians have recently experienced how “CMAG, the Commonwealth, and other infidel organisations and nations” have tried to change truths and “assisted falsehoods” in their ways of justice.

After the controversial transfer of presidential power in February 2012, the Maldives was suspended from the Commonwealth Ministerial Action Group (CMAG) – the Commonwealth’s democracy and human rights arm.

CMAG also drew criticism from the government after expressing concerns in delays to the 2013 presidential election, declaring its belief that first round had been credible after the result was annulled by the Supreme Court.

“In addition to this, it would not be impossible for the country become a target of dangerous and horrifying attacks from within and without as a result of this [taking part in the UN forces],” the NGO continued, warning anyone who dies fighting on the side of infidels in a war against Muslims would be considered an apostate and should be treated as a non-Muslim in every way.

In what seemed to be a reference to recent police investigations into Maldivians fighting in the Syrian civil war, Salaf said that, for fear of international disapproval, Maldivians are not being allowed to train themselves in foreign countries for obligatory Jihad against infidels who are fighting against Muslims.

The group remarked that it would be unfair to allow Maldivian Muslims to fight in the ranks of infidels against fellow Muslims.

Reports emerged last month of two Maldivian citizens being killed while fighting pro-government forces in Syria, with the government refusing to make any official comment on the jihadis as police begin investigations.

Salaf’s disapproval of the participation in UN operations was also expressed when President Mohamed Nasheed’s administration first announced the decision in 2011.

Nasheed’s government at the time stated that it was “important for the Maldives to contribute to the efforts of these international agencies and institutions to ensure that every country, every society and every individual has the opportunity to live in peace and security.”

The parliamentary approval for Maldivian participation in UN peacekeeping missions was granted in October 2011 with 56 votes in favour, five abstentions and 11 votes against.

The Maldives National Defence Force said the participation of the Maldives’ troops would be decided upon by the government.

President’s Office spokesperson today told Minivan News that there has been no change in the government’s stand on the issue.

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Thirty new police recruits sworn in

Thirty new recruits have been sworn-in as police officers at an oath-taking ceremony today, Maldives Police Service has said.

According to police media, their oath was administered by Criminal Court Chief Judge Abdulla Mohamed.

Addressing the officers after the ceremony, Judge Abdulla reminded the new recruits that the oath was taken in Allah’s name, advising them to preserve the safety and security of the people in the service of the nation – as stated in the oath.

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Expansion of economic activity in first quarter driven by tourism sector growth: MMA

Domestic economic activity expanded in the first quarter of 2014 “driven by the strong growth of the tourism sector during the ongoing high season of the industry,” according to the Maldives Monetary Authority’s (MMA) quarterly economic bulletin.

Total tourism receipts in the first three months of the year increased by 10 percent compared to the first quarter of 2013, reaching US$801.1 million, the central bank revealed.

“In Q1-2014, the average operational bed capacity of the industry also increased by four percent when compared to Q1-2013 and totalled 26,999 beds, contributed by the opening of more resorts and guesthouses during the period,” the bulletin explained.

“Despite the increase in the operational bed capacity of the industry, the occupancy rate of tourism accommodation facilities remained relatively unchanged at 84 percent when compared to Q1-2013, owing to the higher increase in bednights.”

Arrival trends

On arrival trends in the first quarter, the bulletin noted that the 10 percent annual increase in arrivals was “entirely driven by the significant increase (24 percent) in arrivals from the Chinese market.”

Chinese tourists accounted for 27 percent of guests during the first quarter of 2014. According to the Tourism Ministry, the Chinese market expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year –  a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

“Meanwhile, after recording three successive quarters of positive growth, arrivals from Europe (which constitute over half of total tourist arrivals) registered a marginal decline of two percent in Q1-2014, mainly due to a substantial fall in arrivals from Russia owing to its economic crisis and partly due to Easter calendar effects,” the bulletin continued.

“The poor performance of the Russian market (the third main market from Europe since Q2-2012) is in stark contrast to the double-digit growth rates exhibited by the Russian market throughout the last year.”

The bulletin noted that all major markets from Europe recorded a decline in arrivals. While arrivals from Germany – “the main source market from Europe” – and Italy both declined by four percent, arrivals from France declined by two percent.

“The better performance of UK market during the quarter is attributable to the sustained growth of the British economy since last year,” the bulletin observed.

Fisheries and construction sectors

The fisheries industry in the first quarter of 2014 “continued to be adversely affected by falling tuna prices in the international market since September last year,” the bulletin observed.

“This is reflected by the annual decline in fish purchases by collector vessels (12 percent) and the fall in both volume and earnings of fish exports in Q1-2014, by 26 percent and 6 percent, respectively,” the bulletin stated.

The construction industry however continued its “ongoing recovery” in 2014, the bulletin continued, which was “indicated by the strong annual growth in construction-related imports and bank credit to mainly residential housing construction projects.”

“Spurred by the strong performance of the tourism and other key sectors, activity in the wholesale and retail sector also picked up during the review period. This was reflected by a 13 percent increase in bank credit to the sector in the review period compared to Q1-2013, while private sector imports (excluding tourism) grew by 9 percent in the same period,” the bulletin read.

“Main driver of inclusive growth”

Meanwhile, a delegation from the World Bank led by the World Bank Vice President Philippe Le Houérou – in his first visit to the Maldives since assuming the post in July 2013 – met President Abdulla Yameen in late May and agreed to work with the government in developing a national strategy for fostering growth and consolidating public finances.

The discussion focused on “the need to reduce fiscal deficits, create a favourable investment climate for the private sector and delivery of key public services,” according to a press release from the World Bank.

“Maldives has enjoyed economic growth during the last decade and expects to achieve 4.5 percent growth in 2014,” Le Houérou was quoted as saying.

“But it still faces challenges, such as balancing public accounts while delivering public services on some 200 islands across hundreds of kilometres of the Indian Ocean. The issue is how Maldives can make the most of its potential in order to achieve inclusive and sustainable development.”

World Bank Country Director for Sri Lanka and Maldives, Francoise Clottes, noted the country’s “great success in developing a world-class tourism sector to take advantage of its breathtaking beauty.”

“This sector is expected to continue to grow and remains the main driver of inclusive growth and sharing prosperity, going into the future,” Clottes said.

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