Revised Foreign Investment Act Expands Opportunities for Local Businesses, Says Economic Minister

Minister of Economic Development and Trade Mohamed Saeed has stated that the amendments brought to the Foreign Investment Act have created greater opportunities for local investment across multiple sectors.

The Minister made the remark in a social media post following a statement by the Maldives National Association of Construction Industry (MNACI), highlighting that the newly revised Act reserves specific areas of work for local contractors and construction sector professionals.

The amended Foreign Investment Act, which came into force on 3 September, updates the original legislation passed in 1979 with modern provisions designed to bring significant benefits to local businesses, the government has said.

Among the changes, certain industries in which Maldivians are already active and competitive have been designated exclusively for locals. In addition, regulations have also been changed to prevent foreign investors from applying for projects below a set investment threshold.

In its statement, MNACI welcomed the changes and noted that the government had consulted the association and incorporated its recommendations before implementing the amendments. The statement noted that the revised Act would help improve the livelihoods of those working in the construction sector.

In response to the statement, the Economic Minister said expanding business opportunities for Maldivians is a key pledge in President Dr Mohamed Muizzu’s manifesto. He added that the government consulted stakeholders from various industries when revising the law, the first such review in many years.

At the same time, the Minister assured that the rights and protection of foreign investors in the Maldives will continue to be guaranteed. He said the new regulations are aligned with international standards.

With the new amendments to the Foreign Investment Act, foreign investment has been restricted in some areas where Maldivians are considered to have strong expertise and capacity. These include wholesale and retail trade, logistics, public maritime transport services, bunkering services, construction projects under USD 15 million and real estate projects under USD 100 million. The Ministry stated that these sectors have strong potential for local participation and investment growth.