Building an $8.8 billion blockchain hub with support from the UAE will help the Maldives' economy and reduce its need on tourism.

The Financial Times reported on Sunday that the Maldives, an archipelagic state in South Asia, is working to build a blockchain hub worth $8.8 billion that might help it diversify away from tourism. MBS Global Investments, a $14 billion private office with headquarters in the United Arab Emirates, will assist in funding the enormous project. Earlier this morning, the Dubai family office and the Maldives signed a joint venture deal.

The blockchain effort, which would address the Maldives' over-reliance on tourism, is expected to have a significant positive impact. More than 200% GDP growth and multiplied job opportunities in 4 years of existence are possible. The economy of the Maldives is mainly run by tourism; it contributes nearly 30% to the national GDP.

The island state's fishing industry is expanding and accounts for over 10% of its GDP. Yellowfin tuna and skipjack caught in the Maldives are sold mainly in Thailand, Japan, and the EU. The country is presently undergoing economic challenges because its public debt is more than its GDP, currently valued at about $7 billion. Additionally, it is experiencing budget difficulties as a result of excessive expenditure. 

The tension might be lessened with the recently revealed blockchain transition. Moosa Zameer, Finance Minister, told the Financial Times that the $9 billion hub might be a solution to the present problems. Notably, the ambitious effort might be able to help it stay out of default.