First National has welcomed the Capital Market Development Authority’s (CMDA) decision to open the Maldives’ domestic capital market to foreign investors for the first time in over four decades. The move, made possible through legislative reforms enacted in 2024, is expected to broaden access and attract international capital.
According to First National, the reforms will allow the country to draw in much-needed investment for the private sector, helping lower the cost of capital, enhance competitiveness, and support long-term economic growth.
The amendments to the Maldives Securities Act and Business Registration Act give CMDA comprehensive regulatory oversight aimed at ensuring transparency, governance, and investor protection. Under the new framework, foreign investors can acquire equity stakes of up to 10% per investor, while 100% ownership will be permitted in bonds and other securities approved by CMDA.
To safeguard market integrity, eligibility criteria require foreign investors to be domiciled in jurisdictions recognised by the International Organization of Securities Commissions (IOSCO). They must also not be subject to sanctions or blacklisting by international bodies such as the United Nations or the Financial Action Task Force (FATF).
The regulation also introduces a new category of licensed intermediaries known as Foreign Investment Agents. These agents will facilitate compliance and administrative processes, including investor registration, management of capital flows, reporting, and audit support.
First National confirmed it will seek to obtain a Foreign Investment Agent licence from CMDA. The company said its services will cover investor registration, investment advisory, fund management, brokerage, record keeping, inward investment account management, and advisory on exit strategies.
The reforms present international investors with opportunities to access a fast-growing market, benefit from ESG and impact investment options, and contribute to sustainable development in the Maldives. First National said it remains committed to providing guidance and seamless entry for investors interested in the country’s evolving capital markets.
