Ministry of Economic Development has announced Foreign Direct Investment (FDI) Policy, opening 92 sectors for foreign investment.
The newly publicised policy includes guidelines and regulations for new and existing investors in Maldives. While the policy includes 92 types of business foreigners can invest in the Maldives, an additional 55 areas have also been approved for foreign investment after review.
The policy includes 37 restricted businesses for which only a 5-year permit has been allocated for foreigners. These permits will expire on December 31, 2025. According to FDI policy, foreigners are prohibited from investing in 29 types of businesses, which include retail businesses and photography.
Speaking to brief the public on the new policy, Minister of Economic Development Fayyaz Ismail said the newly announced policy shall aware foreign investors on areas they can invest in Maldives. Although foreigners previously required an approval from the ministry, the policy has changed detailed processes of FDI in Maldives.
Minister Fayyaz said while some businesses have been restricted for foreigners, more opportunities have been opened in some other areas. He said diving was earlier open for 100% FDIs and the current revisions requires investors to start diving centres as joint ventures, with a 20 percent investment from a Maldivian.
According to the minister, under the new FDI policy, businesses can apply for funding for Public Service Investment Program (PSIP) projects in Maldives through Maldives Monetary Authority (MMA) and Capital Market Development Authority (CMDA). Investors can also request the ministry for PSIP projects.
Economic ministry revealed tourism and construction sector as the two most demanding sectors for FDI projects.