Parliament Accepts Amendment to SEZ Act Introducing Sustainable Townships

The Parliament has accepted the first amendment to the 2014 Special Economic Zones (SEZ) Act, establishing the legal framework for the development of “sustainable townships” within designated SEZs. The new class of mixed-use projects aims to encourage large-scale, environmentally responsible investments.

Amendment Seeks to Attract Major Sustainable Investments

The amendment, proposed by Baarashu MP Ibrahim Shujau on behalf of the government, was passed with 41 votes in favour and six against. The bill has been forwarded to the Committee of the Whole House for detailed review.

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Under the proposed changes, any sustainable township must attract a minimum investment of USD 500 million (approximately MVR 8 billion). Developers will also be required to meet several qualitative standards, including the integration of luxury tourism and residential facilities, the establishment of international-standard training or health institutions, and the development of renewable energy and waste management systems.

At least 60 percent of the energy used within such projects must be derived from renewable sources. In addition, the proposals emphasise self-sufficiency through sustainable agriculture or aquaculture, as well as the provision of high-quality housing, education, and healthcare infrastructure.

Sustainable townships were formally recognised under SEZ policy by a presidential decree issued by President Dr Mohamed Muizzu on 12 January 2025. The initiative represents a shift towards mixed-use, sustainable economic developments, compared to the single-sector focus of earlier SEZ projects, which generally required investments exceeding USD 100 million.

In addition to the SEZ amendment, the sitting featured a heated exchange during ministerial questioning, debates on delays in the government’s housing scheme, acceptance of a resolution on Aasandha access for foreign spouses, and updates on the ongoing election of a new President for the Maldives Media and Broadcasting Commission.

Heated Exchange During Ministerial Question Time

The session also included a Question and Answer segment with Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed. Tensions rose after the Minister’s remarks, leading to a heated exchange between government and opposition MPs. The Speaker instructed MP for Kendhoo, Mauroof Zakir, to leave the chamber after repeated disruptions.

Following the incident, the Speaker announced that a microphone had been damaged during the commotion and that MPs responsible would be required to compensate for the damage after an investigation.

Resolution on Delayed Housing Scheme Debated

MP Mauroof Zakir tabled a resolution addressing the delays in handing over flats to beneficiaries under the government’s 4,000-flat housing scheme. The resolution sparked discussion among members over the prolonged wait faced by many recipients and the need for improved transparency in housing allocations.

Resolution on Aasandha Access for Foreign Spouses Accepted

Parliament also accepted a resolution proposed by North Galolhu MP, Mohamed Ibrahim, seeking to gather MPs’ views on the lack of access to Aasandha healthcare services for foreigners married to Maldivians. The resolution was accepted with 46 votes in favour and has been referred to the Committee on Social Affairs for further consideration.