Government works on immediate measures as construction material shortages worsen due to Middle East conflict

Expatriate workers at a construction site in Male'. (Sun Photo)

The Maldives is currently experiencing significant disruptions in the importation of essential construction materials, largely driven by escalating conflicts in the Middle East. These supply chain challenges have resulted in sharp price hikes, particularly for cement, impacting both private development projects and public infrastructure initiatives. In response, President Dr. Mohamed Muizzu has established a Special Ministerial Committee to oversee the crisis. The government is actively engaging with industry stakeholders, including the Maldives Association of Construction Industry (MACI), to formulate immediate mitigation strategies. Officials are prioritizing the maintenance of essential goods supplies, including construction materials, fuel, and food, through improved monitoring, contingency planning, and the building of national reserves to ensure economic stability.

Supply chain disruptions in the Middle East have caused a scarcity of essential construction materials in the Maldives.
Cement prices have spiked dramatically, with some costs nearly doubling, causing strain on ongoing projects.
A Special Ministerial Committee has been formed by President Muizzu to coordinate the government's crisis response and supply management.
The Ministry of Economic Development and Trade is collaborating with the Maldives Association of Construction Industry (MACI) to address industry proposals and implement immediate solutions.
The government is actively building national reserves of key commodities, including construction supplies, to prevent further volatility.

The Special Ministerial Committee formed by President Dr Mohamed Muizzu has stated that the government is working to address the challenges in securing certain construction materials due to disruptions caused by the ongoing conflict in the Middle East.

Committee chair and Foreign Minister Dr Abdulla Khaleel told reporters at the Presidential Palace on Sunday that the Ministry of Economic Development and Trade is working on immediate measures to ease shortages affecting the construction sector.

Economic Minister Mohamed Saeed said the government is closely monitoring the situation and is in continuous discussions with the Maldives Association of Construction Industry (MACI). He noted that MACI’s proposals have been formally submitted to the President’s Crisis Committee.

“Recently, we held extensive discussions with senior officials of MACI, and their proposals have now been taken up by the Crisis Committee established by the President,” Saeed said.

The minister added that despite global supply challenges, the government is ensuring uninterrupted availability of essential goods, including basic food items, medicines and key construction materials. Work is also underway to build reserves of food, construction materials and fuel.

Foreign Minister Dr. Abdulla Khaleel speaks at a press conference at the President’s Office, where a special Cabinet committee briefed the media on national issues arising from the Middle East conflict, March 12, 2026. (Photo/President's Office)

Cement prices in the Maldives have risen sharply in recent weeks, with traders telling Sun that prices have nearly doubled. A basket of cement that previously cost under MVR 100 is now selling for more than MVR 200, creating difficulties for ongoing construction projects.

STO remains the largest importer of cement and sand in the country. Traders say that when STO’s supply volume decreases, demand shifts to private importers, driving prices higher.

The Maldives imports construction materials mainly from India, UAE, Pakistan and Vietnam. Customs data shows India is the largest supplier of stone and sand for the local construction industry.

Industry experts warn that steep price increases will affect both private construction and government infrastructure projects.

By Azhaar Abdul Azeez

Writer