The Foreign Investment Act came into effect on Tuesday, with the Ministry of Economic Development and Trade announcing updated investment approval processes and application forms on their website. The new law, which replaces 45-year-old legislation from 1979, was ratified by President Dr Mohamed Muizzu on September 3, 2024.

The Ministry confirmed via their official X account that updated foreign investment approval processes and application forms are now available on their website.

The new legislation establishes comprehensive guidelines for investor protection and responsibilities, whilst mandating prior Ministry approval for foreign investments. Invest Maldives, the government's lead agency for investment promotion, will continue to serve as a one-stop shop for potential investors, reflecting the country's commitment to pro-market policies.

Key features of the new law include clear procedures for obtaining permits and licences, specific provisions for state withdrawal of investments under special circumstances, and precedence over other foreign investment laws, except for the Special Economic Zone Act.

The implementation follows a three-month transition period, during which necessary regulations and guidelines were developed. This strategic update is expected to strengthen the Maldives' position as an attractive destination for international investors whilst ensuring the country's economic development priorities are met.