The Ministry of Economic Development and Trade has announced the revised Foreign Investment Entry Requirements under the new Foreign Investment Act, ratified by President Dr Mohamed Muizzu on 3 September 2024.

The new Act replaces the decades-old 1979 law and establishes a modern, transparent, and predictable framework for foreign investment. The ministry said the revisions are designed to attract quality foreign investment while expanding opportunities for Maldivians and strengthening local participation in key sectors.

Under the updated requirements, investment sectors are divided into three categories: fully open to foreign ownership, joint ventures, and closed to new foreign investment. The ministry explained that the classification was finalised after Cabinet deliberations and consultations with industry stakeholders.

Several sectors with strong local expertise will now be reserved for Maldivians or restricted to ensure greater domestic ownership. These include wholesale and retail trade, logistics, public maritime transportation, bunkering services, construction projects valued under USD 15 million, and real estate projects under USD 100 million.

According to the ministry, this approach ensures that Maldivian businesses have priority in areas where local skills and capacity already exist, while foreign investors are encouraged to enter sectors where international experience and capital are needed to drive growth.

The ministry also stated that existing foreign investors in reclassified sectors will be given a fair and transparent transition period ranging from one to seven years, depending on the nature and scale of their investments.

Officials said the revised framework supports President Dr Muizzu’s vision of elevating the Maldives to developed nation status by 2040, by promoting sustainable growth and empowering Maldivians to play a leading role in the country’s economic development.