Muizzu Ratifies New Foreign Investment Bill

President Dr Mohamed Muizzu has ratified the new Foreign Investment Bill, a legislative reform designed to modernise the Maldives’ foreign investment framework, replacing a 45-year-old Act.

The revised legislation aims to create more opportunities for foreign investors while ensuring adherence to updated legal procedures. Under the new law, the Maldivian government assumes responsibility for identifying, evaluating, and conducting feasibility studies on potential business opportunities across the nation.

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Foreign investors are now required to focus solely on areas specified by law and must secure a special license before proceeding. The Act further distinguishes between sectors open to investment and those that may be subject to specific conditions.

Investment opportunities will be determined following consultations with the Cabinet. The law also stipulates that the Ministry of Economic Development and Trade will assess investment permit applications within 30 days, provided they meet all regulatory criteria.

The updated bill imposes stricter penalties for non-compliance. Businesses found operating outside the bounds of their license may face fines of up to 30 percent of their total business value. Additionally, submitting incorrect information when applying for a foreign investment license could incur penalties ranging from MVR 100,000 to MVR 1 million.

This legal overhaul is part of a broader effort by the Maldivian government to attract and regulate foreign investments, ensuring that they align with the nation’s economic priorities and regulatory standards.