Oil and Mineral Exploration Added to Permitted Activities in Maldives SEZs

Exploration of oil and minerals has been added to the list of activities permitted within Special Economic Zones (SEZs) in the Maldives, following a new presidential resolution.

Under the Special Economic Zones Act, the President holds the authority to determine the types of economic activities allowed in SEZs, as well as the minimum investment thresholds required for such projects. President Dr Mohamed Muizzu last set these parameters in January 2025.

In the previous resolution, exploration activities permitted within SEZs were limited to gas-related projects. However, a new resolution issued yesterday expands the scope to include oil and mineral exploration, in addition to gas.

The resolution does not amend other categories of activities already approved for SEZs. These include:

• Export-oriented manufacturing activities

• Transhipment ports, international logistics, ports, airports, bulk breaking, bunkering and docking services
• Universities, tertiary hospitals, specialty hospitals and world-class research and development facilities
• World-class Information Communication Technology (ICT) parks and related facilities
• International financial services and international trade centres
• Renewable energy sector
• Activities introducing new technologies currently unavailable in the Maldives
• Food security sector

The updated list now formally includes gas, oil and mineral exploration among eligible SEZ activities.

In addition to defining permissible activities, the President is empowered under the law to set minimum investment requirements for SEZ projects. The resolution issued last year set a minimum investment threshold of USD 100 million for SEZ projects, excluding sustainable township developments. For sustainable township projects, the minimum investment requirement remains USD 500 million.

The Government has previously undertaken studies to assess the potential for hydrocarbon resources in the Maldives, including during the administration of former President Abdulla Yameen Abdul Gayoom. The inclusion of oil and mineral exploration within SEZs broadens the scope for future investment proposals under the existing SEZ framework.