Industry in the Maldives consists of a traditional and a modern sector. The traditional sector consists of boat building, mat-weaving, rope-making, black-smiting, handicraft and other cottage industries. This sector employs a considerable number of women and accounts for about a quarter of the work force. Its linkage with other sectors of the economy such as tourism, transport and construction has further strengthened this sector. While the traditional industries continue to flourish, there are also a number of new industries coming up.

The main activities in the modern sector include fish canning, manufacturing of garments, production of PVC pipes, construction of fibreglass boats, production of cleaning fluids, and bottling of aerated water. Other enterprises such as boat yards, transport services, electrical and mechanical workshops, carpentry’s and brick-making units are also significant.

The size of the domestic market, shortage of skilled and semi-skilled manpower, non-availability of ray materials and difficulties of transportation characterize the constraints of industrial development in the country. It is recognized that the development of the industrial sector is important to meet the growing demands of the economy. Therefore, foreign investment is highly encouraged for initiating mutually beneficial investment projects. The industrial sector accounts for about 5.8% of the GDP.

It is expected that with the development of transport, communication and other infrastructure facilities, the economic base of the country will be further broadened.