The Maldives has officially begun inviting foreign investors to apply for investment licenses under the newly ratified Foreign Investment Law, which came into effect on December 3. This marks a significant step in the country’s efforts to attract foreign capital and modernize its investment landscape.
The law, signed into effect by President Dr. Mohamed Muizzu in September, establishes a streamlined process for acquiring foreign investment approval. Investors seeking to operate in the Maldives must follow a structured procedure, which includes:
- Submitting an application to the Ministry of Economic Development and Trade.
- Receiving a preliminary No Objection Letter from the Ministry.
- Registering the legal entity for business operations.
- Acquiring the foreign investment license from the Ministry.
- Signing a Foreign Investment Agreement between the investor and the Ministry.
The updated legislation aims to create a conducive environment for foreign investment by addressing key aspects such as investor protection, dispute resolution mechanisms, and conditions under which investments may be revoked by the state. It also emphasizes fostering technology transfer, skill development, and knowledge sharing.
A notable highlight of the law is its precedence over other foreign investment-related provisions, except those outlined in the Special Economic Zone Act. This comprehensive overhaul replaces the country’s previous foreign investment framework, which had remained unchanged since 1979.
The government has positioned the new legislation as a cornerstone of its economic reform agenda, designed to boost investor confidence and encourage sustainable development in the Maldives. By modernizing its investment framework, the nation hopes to attract foreign capital while safeguarding its economic and environmental interests.
This development represents the first significant amendment to the country’s foreign investment laws in nearly five decades, signaling a new era for international investors eyeing opportunities in the island nation.
