The Ministry of Economic Development and Trade introduced a Transition Arrangement for existing foreign investments affected by the newly restricted and closed sectors under the revised Foreign Investment framework.
According to the Ministry, the transitional framework, introduced with the revised framework for investing, aims to support investors impacted by the policy changes, allowing them sufficient time to restructure operations and align with the new entry requirements endorsed by the Cabinet.
The Annex II published by the Ministry outlines the applicable transition periods for existing investments in restricted and closed sectors. It also highlights that the proposed durations and scope were developed following extensive consultations with the Business Council—a body comprising private sector representatives across key industries—as well as with investors and legal experts representing foreign stakeholders.
The Ministry stated that the arrangements are in line with international best practices, ensuring policy credibility while facilitating a smooth transition for affected businesses.
Transition periods will vary based on the sector, project type, and investment scale.
- A one-year transition period will be granted to businesses in General, Cargo, and Passenger Sales Agency, Accounting and Auditing, Service-based businesses, and Wholesale and Retail Trade.
- Sectors involving substantial investments, such as sea transport, domestic logistics, and capital-intensive projects, will be granted three to seven years.
- Existing residential real estate projects will follow transition timelines as outlined in their respective project agreements.
Investors seeking to benefit from the transition period must submit an application via fiu@trade.gov.mv. Applications will undergo a preliminary assessment by the Foreign Investment Unit (FIU), followed by a review by the Transition Committee. The Ministry will then issue a decision specifying the approved continuation period, with investors given the right to appeal for re-evaluation.
