President Dr Mohamed Muizzu has ratified the First Amendment to the Special Economic Zone (SEZ) Act (Act No. 24/2014), introducing new provisions to support the development of sustainable townships within designated SEZs.
The amendment bill was passed by the 20th People’s Majlis during its 16th sitting of the third session of 2025, held on 5 November.
The revised Act outlines the framework for designating SEZs as sustainable townships, setting out the principles and conditions required for their establishment. According to the amendment, a sustainable township must involve a minimum investment of USD 500 million and include either an integrated tourism development or a large-scale real estate development. Integrated tourism projects are required to feature a range of luxury tourism services, while large-scale real estate developments must additionally include luxury residential facilities.
The amendment also introduces new sustainability standards for infrastructure within such zones. It mandates that energy production and waste management systems must be self-sufficient, with at least 60 per cent of the zone’s operational energy needs generated from renewable sources.
In addition, the amendment specifies a range of special concessions and incentives for developers and investors involved in sustainable township projects, aimed at promoting large-scale, environmentally responsible investment in the Maldives.
Following ratification, the First Amendment to the Special Economic Zone Act has been published in the Government Gazette and is now in effect.
