Bhutan, renowned for its Gross National Happiness philosophy, is embarking on an ambitious project to transform itself into a global financial hub with the creation of Gelephu Mindfulness City (GMC). Launched by King Jigme, this bold initiative aims to position the Himalayan kingdom as a center of innovation, economic growth, and spiritual retreat while attracting foreign investors and expatriates.
Over the decades, Bhutan has successfully maintained its unique identity, focusing on happiness as a measure of development since the 1970s. However, the nation now faces a new set of challenges. More than 6% of its population has emigrated since 2015, many leaving for opportunities in Australia. In response, King Jigme envisions GMC as a way to reverse this trend, bringing back Bhutanese talent and drawing foreign professionals to the region.
Located in the subtropical lowlands near India, GMC is designed to cover 1,000 square kilometers, making it larger than Singapore. The city will be powered mostly by hydro-energy and is expected to house a million residents, including digital nomads, crypto entrepreneurs, and Buddhist pilgrims. This development is part of Bhutan’s strategic move to create a financial and technological center that can rival major global cities.
India’s proximity plays a crucial role in the success of GMC. Historically, Bhutan has enjoyed close ties with India, which has provided significant development support. India’s pledge of $1.2 billion in aid over the next five years underscores its commitment to strengthening the relationship, doubling the support provided in the previous five years. Indian firms are also key players in this new venture. On October 2, Reliance Group announced a $700 million investment in two power projects, one in GMC and another nearby, while the Adani Group has also expressed interest.
King Jigme’s vision for GMC goes beyond creating a financial hub. The city’s unique status as a “special administrative region” will grant it more autonomy than a typical special economic zone. Its regulatory framework will be modeled on Singapore’s legal system, while financial regulations will take inspiration from Abu Dhabi. This progressive environment is expected to lure investors from various sectors, including artificial intelligence (AI), biotechnology, and cryptocurrency. Bhutan’s existing Bitcoin holdings, valued at $750 million as of September, rank as the fourth-largest in the world, further bolstering its appeal to crypto entrepreneurs.
However, the secrecy surrounding Bhutan’s crypto ventures has raised concerns among some Bhutanese citizens, as well as foreign officials. There are fears that GMC could attract illicit money from countries facing Western sanctions. While Bhutan has assured that it will carefully screen all investors, questions remain about how the small nation will manage this given its limited diplomatic resources.
The geopolitical landscape adds another layer of complexity to Bhutan’s ambitious plans. Nestled between India and China, Bhutan has traditionally aligned itself with India. Yet, in recent years, it has sought to expand trade and tourism ties with China, even edging closer to resolving a long-standing border dispute. Despite these developments, India remains the dominant force in Bhutan’s foreign policy, with hundreds of Indian troops stationed in the country to counter potential Chinese influence.
As the world witnesses the rise of mega-city projects like Saudi Arabia’s Neom and Indonesia’s new capital Nusantara, Bhutan’s GMC stands apart with its emphasis on spiritual retreats, harmony with nature, and a mindfulness-driven lifestyle. At its core, however, the project is intended to serve as a financial hub that provides a gateway to India, much like Singapore and Hong Kong do for China.
While King Jigme acknowledges that the success of GMC is far from guaranteed, he believes it is a necessary step for Bhutan’s future. “Mindfulness,” a key component of Bhutanese culture, is woven into the city’s identity. Yet, as the project progresses, it is clear that Bhutan’s aspirations for GMC go beyond mindfulness, aiming instead for economic transformation and global recognition.
GMC’s success will determine whether Bhutan can maintain its unique cultural identity while integrating into the fast-paced global economy. For King Jigme, this project represents not just a vision for a city but a vision for the future of his nation.
