The Ministry of Economic Development and Trade has announced the publication of the revised Foreign Investment Entry Requirements under the new Foreign Investment Act, ratified by President Dr Mohamed Muizzu on 3 September 2024.
The new Act, which replaces the 1979 law, introduces a modern, transparent, and predictable framework for foreign investors, providing enhanced investment security and aligning with international best practices. The Act strengthens investor confidence while supporting the Government's broader vision of sustainable, inclusive, and resilient economic growth.
Endorsed by the Cabinet, the revised Foreign Investment Entry Requirements mark a key milestone in the government's development agenda to diversify the Maldivian economy, empower Maldivians, and attract high-quality investment. These revisions reflect a balanced approach: enabling greater openness in sectors that require foreign capital and expertise, while strengthening local participation in industries where domestic capacity exists.
The updated entry requirements classify investment sectors into three categories: fully open to foreign ownership, joint ventures and closed to new foreign investment. In determining these categories, the Ministry, following extensive Cabinet deliberations and in line with the factors prescribed by law, also undertook wide-ranging consultations with industry representatives and investors. The process considered national security implications, market competitiveness, readiness of local businesses, need for foreign capital and expertise, long-term contribution to productivity, and human capital development and employment opportunities.
The Economic Ministry said sectors where local skills and expertise are strong will be reserved for Maldivians or subject to restriction for foreign investment. These include wholesale and retail trade, logistics, public maritime transportation services, bunkering services, as well as construction projects under USD 15 million and real estate projects under USD 100 million. The Economic Ministry noted that these sectors offer significant opportunities and investment potential for local businesses.
Recognising that some sectors previously open to foreign investment have now been reclassified, the Ministry affirmed that appropriate transition arrangements will be provided to existing investors. These arrangements will be fair, transparent, and time-bound, with transition periods generally ranging from one to seven years, depending on the sector and the scale of investment, the Ministry said.
In assessing transition applications, the Ministry will consider the capital committed, compliance with existing regulations, and overall contribution to the Maldivian economy. This approach ensures predictability and fairness, while maintaining the integrity of the government's new policy directions, it said.
Under President Dr Mohamed Muizzu’s vision to elevate the Maldives to developed country status by 2040, foreign investors will also be given opportunities in areas where Maldivian experience is currently limited, under the new investment requirements.
The Ministry assured that the Maldivian government remains firmly committed to creating an enabling environment for foreign investment, one that fosters sustainable growth, strengthens investor protection, and provides a clear and secure framework for doing business in the Maldives.