Gelephu Special Administrative Region

Gelephu Special Administrative Region (stylized as GeSAR), also known as Gelephu Mindfulness City (GMC SAR) (Dzongkha: དགེ་ལེགས་ཕུག་དྲན་ཤེས་ཁྲོམ་ཚོགས) and Sarpang District Special Economic Zone (SD SAR),^[1][2] is a planned economic hub and special administrative region in Gelephu in Bhutan, separate from Bhutan's existing laws. Strategically located on the border with India to leverage regional connectivity betweem South Asia and South East Asia, it will cover an area of 2,500 square kilometers three times the size of Singapore.^[1]

King Jigme Khesar Namgyel Wangchuck of Bhutan announced the plan for the GMC SAR in a public Royal Address during the 116th National Day celebration on December 17, 2023.^[3]

The city will have its own business-friendly regulations and systems, integrating sustainability, Bhutanese culture, and spirituality with plastic-free, modern, urban, low-rise, eco-friendly buildings. The aim is to create a clean technology innovation hub by attracting global investment to boost economic activity. All food will be from organic sources, electricity from renewable sources, built to promote cycling, and foster AI innovation.^[4] GMC SAR will have seven key economic clusters, Spirituality, Health and Wellness, Education and Knowledge, Green Energy and Tech, Finance and Digital Assets, Agri-Tech and Forestry, Aviation and Logistics.^[5]

Gelephu was formerly a Lhotshampa town. The Lhotshampa were ethnically cleansed by the King of Bhutan in the 1990s and currently reside in refugee camps in Nepal.^[6] Their political leaders were tortured.^[7]

For several years, the King of Bhutan has planned the development of the Gelephu Mindfulness City (GMC) as a Special Administrative Region (SAR) with its own distinct laws and systems, with initial development to be driven by Foreign Direct Investment.^[1][2] Unveiled as part of Bhutan’s broader strategy to diversify its economy and create opportunities for its youth, GMC emphasizes Bhutan’s cultural identity while integrating modern technologies and sustainable practices. Its development gained prominence at the Bhutan Innovation Forum in 2024,^[8] where it received endorsement from Nobel laureates Joseph Stiglitz and Michael Spence, architect Bjarke Ingels, and Snap Inc. CEO Evan Spiegel.

Joi Ito is the Chairman of the Gelephu Investment and Development Corporation (GIDC), responsible for attracting investment and supporting the development of Gelephu Mindfulness City in Bhutan. His role includes promoting digital infrastructure, green energy projects, and technology industries such as artificial intelligence and blockchain. Ito is known for his prior roles as Director of the MIT Media Lab and President of Chiba Institute of Technology.

His appointment has drawn controversy due to past ties to Jeffrey Epstein; in 2019, Ito resigned from MIT after it was revealed he had accepted and concealed donations from Epstein, leading to public criticism and calls for greater transparency.^[9][10]

ORO Bank serves as the official financial institution of GMC. It positions itself as a sustainable, full-reserve digital bank aligned with Bhutan's Gross National Happiness values.^[11] However, its credibility has been questioned due to its CEO, Mike Kayamori, who previously led the cryptocurrency exchange Liquid Global. Under Kayamori's leadership, Liquid Global experienced a $90 million hack, regulatory scrutiny, and was eventually sold to FTX shortly before FTX's own collapse. A 2022 investigation by CoinDesk described Liquid as "a case study in how not to run a crypto exchange", citing poor governance and lax controls during Kayamori's tenure. His appointment as CEO of ORO Bank has raised concerns about vetting and transparency in managing national infrastructure funds.^[12]

Bjarke Ingels Group (BIG) is the principal architect and master planner for Gelephu Mindfulness City. The firm’s design for GMC is based on Bhutan’s Gross National Happiness principles, featuring Mandala-inspired neighborhoods and sustainable, carbon-negative urban infrastructure powered by renewable energy. In 2024, BIG became the first international company to open an office within GMC to support regional projects and nurture local design talent. Their involvement is integral to GMC’s goal of blending global innovation with Bhutanese cultural and environmental values.

BIG and its founder Bjarke Ingels have faced several controversies. The firm has been accused of greenwashing, notably for designing Saudi Arabia’s Qiddiya entertainment city amidst criticism of the country’s human rights record and environmental policies. Gender imbalance within BIG was highlighted after a 2017 incident involving a project photo featuring only men, raising questions about women’s representation in leadership. Some BIG projects, such as the VM Mountain housing complex, have been criticized for limited social integration and questionable community impact. Additionally, Ingels received backlash after meeting with Brazilian president Jair Bolsonaro, known for climate-change denial and harmful environmental policies. Critics also argue that BIG sometimes prioritizes aesthetic innovation over practical functionality, citing examples like the “cactus towers” in Ørestad. The firm’s association with WeWork ended amid the company’s financial difficulties and re-evaluation of architectural strategy.^[13][14][15]

Gelephu Mindfulness City, aiming to foster innovation and economic development while maintaining Bhutan’s commitment to mindfulness and environmental sustainability, will be organized around seven key economic clusters:^[5]

• Spirituality: Promoting mindfulness and Bhutanese cultural heritage.
• Health and Wellness: Establishing GMC as a global destination for holistic health.
• Education and Knowledge: Creating a “City of Mindful Learning” with world-class educational institutions.
• Green Energy and Tech: Leveraging Bhutan’s renewable energy potential to foster innovation.
• Finance and Digital Assets: Launching the blockchain-backed digital currency TER, aimed at promoting transparent and secure financial transactions.
• Agri-Tech and Forestry: Enhancing food security and sustainable agriculture practices.
• Aviation and Logistics: Developing the Gelephu International Airport as a regional hub.

The city seeks to address critical challenges like youth unemployment and urban migration, while promoting renewable energy, ethical investments, and mindful living.

GMC operates as an autonomous administrative region with independent executive, legislative, and judicial systems. The governance framework prioritizes transparency and accountability, ensuring a business-friendly environment while promoting mindfulness and sustainability.^[16] The project is led by prominent figures, including Mun Leong Liew as CEO and Dasho Dr. Lotay Tshering as Governor. The Board of Directors comprises experts in investment, infrastructure, education, and technology, guided by His Majesty the King as Chairman. The Gelephu Mindfulness City Authority (GMCA) enacted the first law receiving Royal assent from His Majesty the King on 26 December 2024, adopting 18 Singaporean laws as its primary legal framework and 10 Abu Dhabi Global Market Financial regulations to govern company law, taxation and financial services.^[17][18] The city’s financial ecosystem is intended to be modeled on international best practices, incorporating stringent KYC (Know Your Customer) regulations and anti-corruption protocols.

GMC is claimed to exemplify Bhutan’s philosophy of "Building with Nature". The city integrates renewable energy sources, preserves biodiversity, and promotes low-impact urban living. Infrastructure projects, including the airport and advanced digital networks, will be powered entirely by green energy.

The construction of a 58 km long Gelephu-Kokrajhar rail line (from Gelephu in Bhutan to Kokrajhar city of Assam state in India) and the upgrading of Gelephu Airport from domestic to an international airport commencing around the July-August 2024 are being planned. These initiatives were discussed between the Monarch of Bhutan and India's Prime Minister Narendra Modi.^[1][2]

Despite international praise for its vision and ambition, the Gelephu Mindfulness City project has drawn controversy for what some observers call a case of “visionary expropriation.” According to multiple sources, the project closely mirrors a proposal made years earlier by entrepreneur Art Dane Finch and his Yung Drung City initiative—a startup backed by prominent Silicon Valley figures, including Peter Thiel.^[19]

Finch, who had lived and worked in Bhutan, spent several years developing a charter-city model in Gelephu, complete with investor outreach, strategic planning, and architectural partnerships. His proposal emphasized liberal governance, decentralized innovation, and foreign direct investment through a privately governed zone. Yet, when the Bhutanese monarchy unveiled its own vision for the region in December 2023—with strikingly similar design language and spatial layout—Yung Drung was nowhere in sight.

Critics have accused the Bhutanese government of quietly sidelining the original creators and rebranding the concept as a royal initiative. As Dash Startup notes, "the Bhutanese state essentially ghosted the startup while adopting its blueprint—minus its founders."^[19]

Forbes also cited Finch’s frustration, quoting him as saying he hoped for “dialogue and recognition,” but was instead met with “a closed door.”^[20]

The incident has raised broader questions about intellectual ownership, transparency, and how governments may leverage outsider innovation while restricting their involvement. Supporters of the King’s plan argue that GeSAR is a sovereign vision aligned with Bhutan’s values. Detractors, however, point to a troubling precedent where private entrepreneurship was used as a blueprint for a public project—without credit or collaboration.

• Great Nicobar Island Development Project, SAR in India
• Dawei Port Project, SAR in Myanmar