The Maldives has invited foreign investors to apply for licences under the recently enacted Foreign Investment Law, which came into effect on 3 December. This marks the first major revision of the country’s foreign investment legislation in nearly half a century, replacing the 1979 law with updated provisions.
The new law, ratified by President Dr Mohamed Muizzu in September, mandates foreign investors to obtain a special licence through the Ministry of Economic Development and Trade. The process involves several steps, including the submission of an application, the issuance of an initial No Objection Letter from the Ministry, registration of the business entity, issuance of the licence, and the signing of a Foreign Investment Agreement.
Aimed at fostering investor confidence, the new framework seeks to create a favourable environment for foreign capital, technology, knowledge, and skill transfer. The government has emphasised its commitment to increasing foreign investments as part of broader economic development efforts.
The law also includes measures to protect investors, outlines their responsibilities, and details terms for compensation. It specifies conditions under which investments can be withdrawn by the state and identifies violations that may result in legal action. Additionally, the law takes precedence over existing foreign investment provisions in other legislation, except the Special Economic Zone Act.
By streamlining approval processes and offering robust guidelines, the Maldives aims to attract international investors while ensuring adherence to regulations that align with the nation’s economic goals. For investors, this shift signals a new era of opportunities in one of the world’s most sought-after destinations.
