Minister of Economic Development Mohamed Saeed has stated that the newly introduced Foreign Investment Act to the Maldives will bring a modern change to the 45-year-old law.
On a social media post, Minister Saeed stated that the newly introduced Foreign Investment Act will bring positive changes to the law. He noted that the act will create an environment that ensures legal protection and economic growth for investors.
The newly submitted bill is proposed by the government to define the rules for determining the areas in which foreign investors can invest in Maldives, including rules relating to foreign investments. The government notes that this act will increase foreign investment and create a favourable environment for foreign capital, technology, knowledge and skills to be brought to Maldives.
The Foreign Investment Act provides for full protection and security for foreign investors and their investments. As such, the capital and profits are entitled to be repatriated to the country of the investor. However, the bill may restrict foreign investment or related rights to maintain sovereignty, maintain defence security and safety, protect the environment and protect human rights.
Additionally, the existing Foreign Investment in Maldives Act will be repealed with the enactment of the new Act. With this, the investments licensed under the Foreign Investment in Maldives Act will be transferred to the new Act and foreign investments permitted under the Ministry of Tourism will be given a period of 12 months to register under the new Act.
Furthermore, the Foreign Investment Act was accompanied by bills to amend the Financial Securities Act and the Business Registration Act. As such, an amendment was proposed to the Business Registration Act to allow foreign investors to invest in permitted securities.