Thursday
19th Dec 2024
Dhivehi Edition
Ministry of economic development and trade
Maldives Begins Issuing Foreign Investment Licenses Under Updated Act
Economic minister Saeed
The Ministry of Economic Development has initiated the issuance of foreign investment licenses following the implementation of the updated Foreign Investment Act, a significant overhaul of the legislation first enacted in 1979.
Ratified by the President on September 3, 2024, the new Foreign Investment Act came into effect within three months of its ratification and publication in the government gazette. The Act mandates that all foreign investments in the Maldives must be approved and licensed by the Ministry of Economic Development.
Under the Act, the process for obtaining a Foreign Investment License involves these steps:
1. Submission of investment applications by interested parties.
2. Issuance of a no-objection letter to qualified applicants.
3. Registration of the investor's business.
4. Issuance of a Foreign Investment License by the Ministry.
5. Signing of an investment agreement between the foreign investor and the Ministry of Economic Development.
The Foreign Investment Act aims to enhance the Maldives' investment climate by attracting foreign capital, technology, knowledge, and expertise. It also establishes clear principles for determining eligible investment areas, granting permits, protecting foreign investments, and outlining compensation frameworks for state acquisition of investments under special circumstances.
In cases of conflict with other laws related to foreign investments, the Act supersedes those laws, except for the Special Economic Zone Act. The government expects that the updated Act will bolster investor confidence, facilitate access to financial resources, and enable the establishment of an Investment Protection Promotion Agreement.
This update marks the first modern revision to the Foreign Investment Act in 45 years, replacing the previously enforced legislation. The Ministry expressed optimism that these changes will foster a favorable environment for foreign investments, contributing to the long-term economic development of the Maldives.