The Ministry of Economic Development and Trade has issued an annex detailing the transition arrangements for existing foreign investors affected by the revised Foreign Investment Entry Requirements under the new Foreign Investment Act.

According to the Ministry, most service-based sectors, including general sales agents, cargo and passenger sales agents, accounting and auditing services, and other similar businesses, will receive a one-year transition period.

Sectors involving sea transport, domestic logistics and other large-scale investments will be granted between three to seven years, depending on the investment value. Projects valued below USD 5 million will receive three years, those between USD 5 million and USD 10 million will receive five years, and investments exceeding USD 10 million will be given seven years to transition.

For real estate developments, particularly residential projects, the transition period will align with the duration stated in their existing project agreements. Wholesale and retail businesses will receive a maximum of one year, during which no new outlets or expansions will be permitted.

The Ministry also noted that projects worth more than USD 10 million may be eligible for extended transition periods beyond seven years, subject to review by a Transition Committee to ensure continued investment viability.

The revised Foreign Investment Entry Requirements under the Foreign Investment Act were ratified by President Dr Mohamed Muizzu on 3 September 2024. The changes aim to attract high-quality foreign investment, strengthen local participation in key sectors and expand economic opportunities for Maldivians.