The government has proposed a bill to replace the 44-year-old Foreign Investment Act.
Parliamentarian Ahmed Haroon proposed the Foreign Investment Bill on behalf of the government with the aim of determining the rules and regulations governing the areas in which foreign investment can be made and the rules for issuing permits to individuals investing in the Maldives. The bill also proposed to amend the rules on providing protection and security to investors and the conditions under which investments can be accepted by the state.
The bill states that a license shall be issued to an investor upon receiving approval to make foreign investments. The relevant ministry shall also maintain a register of foreign investment license holders. The foreign investment license issued shall not be transferred to another person. Each license shall include information about the investor, a summary of the economic activities to be carried out in connection with the investment, and an estimate of the amount of funds to be spent. The bill also requires the license to include information on the permitted investment activities.
The ministry has the authority to withhold or revoke the licenses if the investments are in violation of the rules and regulations. The bill also provides for full protection and safeguards for investments made in the Maldives and the benefits of such investments. Such investments should be treated in accordance with transparent policies.
Every foreign investor has the right to repatriate the capital and profits generated from their investment in the Maldives, according to the bill. It also states that no action shall be taken by the state or any state agency for the purpose of taking over foreign investment, even via a subsequent law.
Furthermore, investors can be fined large amounts for violating the act. Any such offense will result in a fine of not more than 30% of the value of the entire business or investment. The bill also allows for a fine of between USD6,500 and USD65,000 depending on the seriousness of the offence.