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In 1973 Ibrahim Nasir was elected to a second term under the constitution as amended in 1972, which extended the presidential term to five years and which also provided for the election of the prime minister by the Majlis. In March 1975, newly elected prime minister Ahmed Zaki was arrested in a bloodless coup and was banished to a remote atoll. Observers suggested that Zaki was becoming too popular and hence posed a threat to the Nasir faction.

Although governed as an independent Islamic sultanate for most of its history from 1153 to 1968, Maldives was a British protectorate from 1887 until July 25, 1965. In 1953, there was a brief, abortive attempt at a republican form of government, after which the sultanate was reimposed.

In 1558 the Portuguese established themselves on Maldives, which they administered from Goa on India's west coast. Fifteen years later, a local guerrilla leader named Muhammad Thakurufaanu Al-Azam organized a popular revolt and drove the Portuguese out of Maldives. This event is now commemorated as National Day, and a small museum and memorial center honor the hero on his home island of Utim on South Tiladummati Atoll.

On July 26, 1965, Maldives gained independence under an agreement signed with Britain. The British government retained the use of the Gan and Hitaddu facilities. In a national referendum in March 1968, Maldivians abolished the sultanate and established a republic.

In 1978 Maldives joined the International Monetary Fund and the World Bank. Tourism also gained in importance to the local economy, reaching more than 120,000 visitors in 1985. The local populace appeared to benefit from increased tourism and the corresponding increase in foreign contacts involving various development projects.

This first elected president of the country introduced several reforms. While serving as prime minister during the 1940s, Muhammad Amin Didi nationalized the fish export industry. As president he is remembered as a reformer of the education system and a promoter of women's rights. Muslim conservatives in Malé eventually ousted his government, and during a riot over food shortages, Didi was beaten by a mob and died on a nearby island.

Muhammad Thakurufaanu Al-Azam also known as Al-Sultan Ghazi Muhammad Bodu Thakurufaanu ruled over the Maldive Islands (Dhivehhi Rajje) from 1573 to 1585 AD. He is one of the most celebrated Maldivian heroes who saved Maldives from the Portuguese conquerors who ruled over the Maldives from 1558-1573 after killing Sultan Ali VI.

Maldives is an isolated nation and is among the smallest and poorest countries in the world. In olden times, the islands provided the main source of cowrie shells, then used as currency throughout Asia and parts of the East African coast. Moreover, historically Maldives has had a strategic importance because of its location on the major marine routes of the Indian Ocean.