MACL’s Expanding Investment Footprint: Profits, Projects, and the Risks of Rapid Diversification

Maldives Airports Company Limited (MACL) is one of the strongest and most profitable state-owned enterprises (SOEs) in the Maldives. Its financial performance, anchored by the operation of Velana International Airport has consistently placed it at the top among SOEs.

However, over the course of 2025, MACL embarked on an unusually broad and intensive investment programme aligned with government development priorities. The scale, speed, and diversity of these commitments represent a clear shift in the company’s roles raising important questions about financial exposure, operational capacity, and long-term strategic focus.

Financial Strength as the Foundation

MACL entered this expansion phase from a position of financial strength. In its first quarter 2025 results released early last year the company reported:

• Total revenue: MVR 2.48 billion

• Gross profit: MVR 1.44 billion

• Net profit: MVR 571.83 million

• Cash reserves: MVR 1.52 billion

• Retained earnings: MVR 8.70 billion

• Total assets: MVR 33.41 billion

  
  

These figures, while now dated, provide important context. They explain why MACL was in a position to take on major capital commitments and why it has increasingly been used as a vehicle for large-scale national development projects.

A Rapid Timeline of Major Commitments

MACL’s investment push began early in 2025 and accelerated sharply from August 2025.

February 2025 - Early Start

• MACL signed a contract with MTCC for R. Fainu Airport, starting the year’s investment push.

August 2025 - Initial Expansion Phase

• In mid‑August, MACL signed MoUs for 63 fitness and recreation centres across multiple islands and for AA. Mathiveri Airport with land reclamation, and signed MoUs for sports complexes in AA. Rasdhoo and AA. Ukulhas.

• From August 25–27, MACL held groundbreakings for fitness centres in Hdh. Finey, Hanimaadhoo, Naivaadhoo, Nelaidhoo, Makunudhoo, Neykurendhoo, Hdh. Kurinbi, and Kumundhoo, while signing MoUs for sports complexes in Hdh. Nolhivaranfaru and Hdh. Kulhudhuffushi, and held a groundbreaking for Kulhudhuffushi Airport passenger terminal development.

September 2025 - Continued Expansion

• MACL signed agreements for sports complex in Hdh. Nolhivaram, and signed MoUs for F. Nilandhoo, Th. Vilufushi, and Th. Guraidhoo Airports with land reclamation, while holding groundbreakings for fitness centres in F. Dharanboodhoo, Th. Buruni, and Th. Hirilandhoo.

October 2025 - Peak Investment Month

• MACL held groundbreakings for fitness centres in ADh. Dhagethi, Dhihdhoo, Omadhoo, Mandhoo, Sh. Feydhoo, Sh. Narudho, and L. Hithadhoo, and signed MoUs for sports complexes in Sh. Milandhoo, Sh. Funadhoo, L. Fonadhoo, L. Gan, and Lh. Naifaru.

• MACL signed MoUs for Sh. Komandoo, Sh. Milandhoo, Sh. Funadhoo Airports with land reclamation, L. Kadhdhoo Airport and coastal protection in L. Fonadhoo, Adh. Mahibadhoo Urban Centre, and Hotel School & Resort in L. Hulhimendhoo, while commencing runway expansion at Sh. Funadhoo Airport and Hulhumale’ Phase III land reclamation.

• MACL held groundbreakings for fitness centres in Lh. Olhuvelifushi and K. Kaashidhoo.

November 2025

• MACL signed agreements for sports complex and City Hotel & Eco-Tourism Project in Fuvahmulah City, held a groundbreaking for sports complex in S. Feydhoo, and took on Rasmale’ land reclamation project, one of the largest land reclamation project in in Maldives.

December 2025

• MACL signed an agreement for sports complex in R. Dhuvaafaru, concluding the year’s major investment activity.

The volume and concentration of these agreements indicate a deliberate expansion of MACL’s responsibilities well beyond aviation.

The Cost of Airport Development and Land Reclamation

When airport developments and large-scale reclamation projects are considered together, the cumulative capital exposure runs into multiple billions of Rufiyaa. Compared against MACL’s profit levels and available cash reserves, the scale of these commitments highlights the financial and liquidity risks associated with undertaking several large projects within a short timeframe.

Airport development in the Maldives is capital-intensive, particularly where land reclamation is required. Recently developed regional airports cost between MVR 150 million and over MVR 500 million per project, while standalone land reclamation projects like Hulhumale’ Phase 3 and Rasmale’ add even larger financial commitments. The Rasmale’ project alone is expected to cost USD 500–700 million (roughly MVR 7.6–10.6 billion).

To put this in perspective, MACL’s total revenue for the first quarter of 2025 was MVR 2.48 billion, with a net profit of MVR 571.8 million. This means that a single large reclamation project like Rasmalé could exceed four times MACL’s quarterly revenue and nearly 20 times a single quarter’s profit, highlighting the scale of financial exposure involved.

When combined with multiple airport developments and other projects, the cumulative capital commitments place MACL in a position where careful financial and operational management is critical to maintain liquidity and long-term sustainability

Financial Exposure and Strategic Risk

MACL’s strong balance sheet provides a buffer, but the scale of commitments raises legitimate financial questions:

• How much of the project cost is directly borne by MACL, and how much is funded or guaranteed by the government?

• Are non-commercial projects backed by explicit reimbursement or risk-sharing mechanisms?

• To what extent will aviation revenues be used to support projects unrelated to airport operations?

  
  

Infrastructure projects are long-term by nature. Aviation, however, is a cyclical and shock-sensitive industry. Reduced financial flexibility during downturns could expose MACL to increased risk.

Operational and Governance Challenges

Beyond finances, the operational challenge is significant. Managing airport operations while simultaneously delivering dozens of construction and development projects increases the risk of:

• Cost overruns and schedule delays

• Dilution of management focus

• Strain on internal oversight and governance

As MACL’s portfolio grows, maintaining transparency and accountability becomes increasingly critical.

A Strategic Shift in Role

What has emerged over the past year is a transformation of MACL from a specialised airport operator into a multi-sector infrastructure developer.

This may accelerate national development, but it also blurs the line between commercial aviation investments and policy-driven public infrastructure. Without clear separation, there is a risk that MACL’s long-term financial sustainability could be affected.

Conclusion

MACL remains one of the Maldives’ strongest SOEs, supported by years of solid profitability. However, the seriousness of the investments made over the past year represents a defining moment for the company.

The issue is not whether these projects have value, but how the risks, costs, and responsibilities are managed. As MACL moves from announcements to execution, transparency around funding structures and long-term obligations will be essential to ensure that the company’s financial strength is preserved.

The scale of investments undertaken in 2025 has fundamentally reshaped MACL’s role and the consequences of that shift will become clearer in the years ahead.