Maldives Introduces New Foreign Investment Law to Attract Global Capital
The Maldives has formally invited foreign investors to apply for investment licences under its newly ratified Foreign Investment Law, which came into effect on 3 December 2024.
The legislation requires foreign investors to obtain a special investment licence through the Ministry of Economic Development and Trade.
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The new law, signed by President Dr Mohamed Muizzu in September, establishes clear procedures for acquiring foreign investment approval. The process involves:
- Submitting an application by prospective foreign investors.
- Issuing an initial No Objection Letter by the Ministry.
- Registering legal entities to facilitate business operations.
- Issuing an investment licence by the Ministry.
- Signing a Foreign Investment Agreement between the investor and the Ministry.
The government introduced the law to foster a favourable environment for foreign capital, technology, knowledge transfer, and skills development. It aims to bolster investor confidence and lay a robust foundation for the country’s economic development through stringent guidelines and safeguards.
The legislation also provides a framework for identifying investment opportunities while ensuring investor protection and accountability. It outlines provisions regarding safety measures, investor obligations, compensation terms, and the conditions under which investments can be withdrawn by the state. Additionally, the law emphasises that it supersedes any other foreign investment provisions, except those in the Special Economic Zone Act.
This marks the first major overhaul of the Maldives’ foreign investment framework in nearly 50 years. The previous foreign investment law, enacted in 1979, has been repealed, underscoring the government’s commitment to modernising its economic policies and attracting global investors to the island nation.
