Gov’t Aims to Boost Investment with New Foreign Investment Act

Minister of Economic Development and Trade Mohamed Saeed has announced that the Maldivian government is committed to enhancing the country’s appeal to investors and creating more opportunities for business expansion.

At a press conference held at the President’s Office, following President Dr Mohamed Muizzu’s ratification of the Foreign Investment Act, Minister Saeed explained that the updated legislation is designed to strengthen investor confidence in the Maldives.

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The new Act incorporates modernised policies and offers improved protection for investors. Minister Saeed indicated that the legislation would continue to provide additional concessions for businesses moving forward.

He noted that if an agreement is reached between Abu Dhabi and the Maldives, businesses from both regions would benefit from enhanced assurance. The Act, he said, is intended to foster greater investment protection.

While the previous law emphasised national security, the updated legislation shifts focus towards ensuring transparency and security for investors. It also aims to safeguard the interests of Maldivian entrepreneurs, specifying areas where foreign investment will be restricted based on these considerations.

Once the new law is in effect, the Cabinet will have three months to determine which areas will be open to foreign investment. Existing investors will be required to reapply for permits in these newly designated zones.

Under the new regulations, investors must obtain a special licence to operate in the Maldives. The Ministry of Economic Development and Trade will review investment permit applications and make decisions within 30 days, provided all regulatory requirements are met.