President Dr Mohamed Muizzu has ratified the First Amendment to the Special Economic Zone Act following its approval by the 20th People’s Majlis at its 16th sitting of the third session of 2025, held on 5 November 2025.

The amendment introduces provisions enabling the designation of Special Economic Zones (SEZs) as sustainable townships, setting out the principles and criteria for their development. It mandates a minimum investment of USD 500 million for each sustainable township, which must include either an integrated tourism project or a large-scale real estate development. These developments are required to feature luxury tourism services, while large-scale real estate projects must also incorporate luxury residential facilities.

Additionally, the amendment requires such zones to be self-sufficient in infrastructure for energy production and waste management. At least 60 per cent of the energy consumed within each zone must be generated from renewable sources, promoting sustainable operations.

The amendment also specifies a range of special concessions and incentives for developers and investors to attract large-scale, environmentally responsible investments.

Following ratification, the First Amendment to the Special Economic Zone Act has been published in the Government Gazette and is now in effect.