International franchise operations within the Maldives will continue to function strictly within established regulatory parameters, Mohamed Saeed, the Minister of Economic Development, Transport and Trade, said as the government seeks to reconcile a landmark trade pact with longstanding protections for domestic businesses.
The clarification, delivered during a parliamentary session, follows the activation of the Maldives-China Free Trade Agreement on 1 January 2025. The inquiry was prompted by Ameen Faisal, the Member of Parliament for Kanditheemu, who questioned whether Chinese corporations were purportedly being granted access to the restaurant sector, a trade traditionally reserved for Maldivian citizens.
Minister Saeed noted that while negotiations from 2015 to 2017 involved extensive stakeholder consultation, certain disparities may emerge between contemporary Foreign Direct Investment policies and initial assurances provided to China. Under the current framework, the restaurant trade remains protected, though international franchises are granted entry under specific conditions.
"Although the restaurant industry is exclusively reserved for Maldivian citizens, international franchises are permitted to operate under specifically defined frameworks within the foreign investment policy," Minister Saeed said. These operations are authorised within resorts and airport facilities, a measure independent of the new treaty.
Beyond domestic concerns, the pact offers Maldivian enterprises unique reciprocal access to the Chinese market. While some commercial sectors have reported operational concerns since the agreement’s implementation, the government and the private sector are working in tandem to resolve these transitional challenges, Minister Saeed assured the Parliament.