The Maldives government has significantly changed the regulations governing the transfer of shares by resort owners and operators. On 12th February 2022, the government announced that these companies would no longer need to obtain prior permission from the Tourism Ministry to transfer their shares. This amendment aims to ease the business process in the country and attract more foreign investment to the tourism sector.
The amendment removes two clauses from the regulations on share transfers. The first clause previously required prior written permission from the Tourism Ministry for share transfers related to tourism businesses. This requirement has now been dropped. The second clause mandated the submission of a share certificate issued by the Economic Ministry to the Tourism Ministry upon completion of the share transfer. This requirement has also been eliminated. Nevertheless, the Tourism Ministry will continue to seek public complaints if notified of any share transfer.
The government’s decision to remove these regulations is a positive step towards making it easier for companies to invest in the Maldives’ tourism sector. The amendment should increase investor confidence, reduce bureaucracy, and streamline the process of doing business in the country.
Featured Cover Image: Mӧvenpick Resort Kuredhivaru Maldives