Ahmed Shaheer, Managing Director, State Trading Organisation (STO)
When the Maldives gained independence in the 1960s, it became apparent that there was a pressing need for a state-owned company to import essential food items and ensure their availability to the public at affordable prices. After successfully delivering on this mission, STO has since expanded into many other key areas of the economy, and is currently seeking investment partners to develop joint projects.
You have been with STO, the leading trading company in the Maldives, since 1994, which gives you a unique perspective on the company's growth. Could you briefly describe STO's evolution and major milestones?
This company was formed 52 years ago to import the basic necessities of the country right after gaining independence, including wheat, rice, sugar and oil. Since then, we have also moved into other fields such as electronics, insurance, structural products, manufacturing, staple foods, fuel, fisheries, construction goods and pharmaceutical supplies. We have left many products to the private sector, and we also became a publicly traded company in 2001, and are thus partly owned by the private sector as well, although the state still controls over 81% of STO.
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"We have a 21-hectare island with potential for Halal tourism that we would like to develop, and we are looking for investors to partner with us."
As managing director, what are your priorities to keep STO growing and providing key services to the Maldives?
We are focusing on our core businesses and expanding our infrastructure. Our main activity is fuel, and we are making a $35 million investment in the fuel sector that we hope to be able to complete by the end of this year. We will have a larger capacity tanker to carry fuel and we are doubling our fuel storage capacity on Funadhoo Island, which is next to the airport, and we are also looking into expanding our warehouse. Since Malé is very small, the logistics are extremely expensive, and we want to make it more cost-efficient by bringing everything under one roof. We are also investing a lot on lifting gear and keeping up with the technology. We are trying to be a more customer-oriented company.
Are there any opportunities for Gulf investors to come on board?
The Maldives has an aggressive economic agenda. We are a young, growing country with many infrastructure requirements that include housing, roads and ports. We also have a lot of land with scope for real estate development, and there is also a lot of room for investment in the shipping business. At STO we have a highly qualified team and we would be happy to find a partner to start a shipping project together. We are also looking for investors to develop bunkering in the Maldives, as we are located along shipping lines.
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"We are big exporters of tuna; this is a sector that is doing very well for us, and there could be a Gulf market for our fish products."
What are your interests in the tourism sector?
We have a 21-hectare island with potential for Halal tourism that we would like to develop, and we are looking for investors to partner with us.
What message would you send to GCC residents about Maldivian products?
We are big exporters of tuna; this is a sector that is doing very well for us, and there could be a Gulf market for our fish products.