Twenty-eight foreign companies registered to operate in business sectors reserved for Maldivians have been dissolved.
The Ministry of Economic Development, Transport and Trade said the companies were dissolved under the powers granted to the Registrar of Companies by law.
Last year, the Ministry of Economic Development, Transport and Trade published the Foreign Investment Entry Requirements, or the conditions for investing in the Maldives. These requirements were formulated under the new Foreign Investment Act ratified by the President in 2024.
In accordance with these requirements, the Economic Ministry said it had dissolved 28 foreign companies that had been registered and operating in the Maldives in sectors specifically reserved for Maldivians. The ministry has also published a list of the companies that have been dissolved.
The ministry said it had provided a transition period to ensure that parties already investing in businesses reserved for Maldivians would not suffer losses. This period allows them either to exit those sectors or transition to other sectors where opportunities are currently available.
The ministry further said the foreign companies were dissolved only after all procedures related to the matter, as well as the procedures stipulated under the Companies Act, had been completed.
The basis of the new investment requirements is to reserve emerging industries and sectors for Maldivians, while opening up greater opportunities for foreign investors in areas where overseas expertise is needed, according to the ministry.
The ministry also said parties already investing in newly reserved business sectors would be given a period to exit or transition so that they would not suffer losses. In addition, opportunities have been created in some sectors for businesses to operate without a Maldivian shareholder, or to operate through a joint venture arrangement.
According to the ministry, additional sectors considered to require greater Maldivian skills and capabilities will either be reserved for Maldivians or have investment opportunities restricted under the new requirements.
These include wholesale and retail trade, logistics, general maritime transport services and banking services. The restrictions also cover construction projects valued at less than USD 15 million and real estate projects valued at less than USD 100 million.
The ministry highlighted these sectors as areas where Maldivians have significant opportunities and where there is strong potential for investment.
The Maldives passed a new Foreign Investment Act in 2024, introducing major changes to the country's foreign investment framework. The law was amended for the first time in 45 years with the aim of creating a more favourable environment for foreign investors coming to the Maldives while expanding competitive business opportunities for Maldivians.
The new law also introduces modern measures to protect investments, and the ministry said it was formulated following extensive consultations.