The government has announced that the Foreign Direct Investment (FDI) Act will bring new benefits to the Maldives, aligning the country's investment framework with the current global climate.
The original FDI Act, which was first enacted on May 1, 1979, has been in effect for 45 years. However, it no longer aligns with the present-day global investment environment and economic conditions. The purpose of the act is to establish guidelines for determining which sectors foreign investors can invest in within the Maldives, outline the regulations for granting investment permissions, and ensure protection and safeguards for investors. President Dr. Mohamed Muizzu has approved the updated FDI Act, signaling a new chapter for foreign investment in the country.
Following the approval, Minister of Economic Development and Trade Mohamed Saeed and Deputy Attorney General Ahmed Usham held a press conference to discuss the implications of the updated law.
Speaking at the press conference, Minister Saeed highlighted that the new law is designed to enhance investor confidence in the Maldives and facilitate access to financing from banks and financial institutions. He also noted that the act supports the adoption of an investment protection promotion agreement, which will further secure and promote foreign investments.
Minister Saeed emphasized the government's commitment to expanding the role of FDI in stimulating economic growth. He stated that President Dr. Muizzu is dedicated to implementing significant economic reforms aimed at broadening business opportunities, promoting a sustainable business environment, boosting trade, and improving the ease of doing business in the Maldives. The minister also pointed out that these reforms include plans to develop the real estate sector into a thriving industry.
Deputy Attorney General Ahmed Usham acknowledged that while the original law was effective at the time of its enactment, updates were necessary to meet current needs. He confirmed that President Dr. Muizzu has approved the amended, more investor-friendly law and is committed to swiftly making additional changes or introducing new legislation to make the Maldives more attractive to investors.
The government has already begun efforts to increase foreign investment in the atolls, inviting local councils to collaborate with Invest Maldives on promotional activities. It has also assured that the interests of Maldivian businesses will be safeguarded, even with the reintroduction of the FDI Act after 45 years.