The Government has published updated entry requirements for foreign investment under the new Foreign Investment Act (Act No. 11/2024), which replaces the law first enacted in 1979. The new framework, endorsed by the Cabinet and gazetted by the Ministry of Economic Development and Trade, is designed to create a transparent, predictable, and investor-friendly environment aligned with international standards.
According to the Ministry, the revised requirements mark a milestone in diversifying the Maldivian economy and encouraging high-quality investments while ensuring local participation in sectors where domestic capacity exists. The new rules categorise all business activities into three groups: open to full foreign ownership, restricted to joint ventures, or closed to foreign investment.
Among the sectors open to full foreign ownership are renewable energy, information and communication technology, logistics infrastructure development, higher education, healthcare, and real estate projects above specified investment thresholds. For instance, data centre operations, renewable energy generation, and resort construction above USD 10 million are fully open to foreign ownership.
In the tourism sector, foreign investors can hold 100 percent ownership in resorts, hotels, and integrated tourism projects, while smaller guesthouse ventures are limited to a maximum 49 percent shareholding. Similarly, the education sector allows foreign ownership of private schools and universities, subject to government agreements.
Certain sectors remain closed to new foreign investment, such as domestic logistics services, wholesale and retail trade (excluding franchising), and employment agencies. Some sectors like architecture, accounting, and physiotherapy clinics are open to joint ventures, with foreign ownership capped between 49 and 75 percent.
The Ministry has also introduced minimum investment thresholds across industries, ranging from USD 250,000 for smaller ventures to USD 100 million for large-scale residential real estate developments. Transition arrangements will be made for existing investors affected by reclassification, with transition periods ranging from one to seven years depending on the sector.
The Government stated that it remains committed to fostering a business climate that strengthens investor protection, promotes sustainable growth, and ensures a secure framework for doing business in the Maldives.
