New investment rules prioritize Maldivian businesses

The Ministry of Economic Development and Trade has gazetted revised foreign investment entry requirements, significantly reshaping the landscape for foreign investors in the Maldives.

The changes, published on Wednesday, are part of reforms under the Foreign Investment Act which came into force in September 2024.

According to the ministry, the amendments aim to create more opportunities for Maldivian businesses in competitive sectors while reserving areas that require foreign expertise. The reforms consider factors such as national security, domestic market competitiveness, the level of local business involvement, and the need for foreign capital and experience.

From the date of gazette, several sectors previously open to foreign investors will now be restricted. Some will require joint ventures with specific shareholding conditions, while others are entirely prohibited. Existing foreign businesses in these sectors will be granted a transitional period to comply with the new regulations.

The ministry emphasized that existing investors with prior approvals and substantial commitments will be reviewed on a case-by-case basis. A Foreign Investment Transition Committee has been established to oversee compliance and facilitate the transition process.