The construction sector in the Maldives has been a significant contributor to the country’s economy and development. This sector plays a crucial role in developing infrastructure, resorts, residential properties, and other facilities to support tourism as well as the local population. The development of Hulhumale itself has spurred the growth of the construction sector from large-scale projects to the high-street hardware store retail level. Hence, the construction sector at every level has facilitated the rise of the reclaimed island from bare land plots to multi-story buildings that now silhouette high into the sky.
The construction work is largely carried out by migrant labourers from Bangladesh, who now make up a significant part of the population in Hulhumale (80,000 workers according to the Bangladesh Foreign Ministry, 2021). Large-scale infrastructure projects, including the bridge, airport expansion, and multifarious other ambitious projects like the Greater Male Connectivity project, continue to stimulate the demand for large-scale construction materials and capital equipment. Additionally, resort development along with housing and land reclamation projects further stimulates demand in the construction sector.
Meanwhile, owners of hardware retail outlets have also informed our research team that they have witnessed healthy growth over recent years, and many have opened multiple retail branches across the Male Atoll in order to meet rising demand for construction equipment and materials.
The most recent data shows that the GDP contribution from the construction sector in the Maldives grew from 3,267.70 million MVR (213 US$ Million) in 2021 to 3,864.70 million MVR (252 US$ Million) in 2022. The long-term trend has remained robust and on a positive incline, almost doubling from 2014 to 2022.