Minister of Economic Development and Trade, Mohamed Saeed, stated that the Foreign Investment Law now enjoys an unprecedented level of trust. The Minister made this statement while speaking on PSM News’ ‘Hafuthaa 104’ program, discussing the government’s achievements over the past two years. Speaking about the amendments brought to the Foreign Investment Law, Minister Mohamed Saeed noted that while the law remained unamended for a long period, the world underwent many changes. Therefore, the Minister stated that upon assuming power, the President gave high priority to modernizing previous laws to foster trust in the business system.
The Minister further stated that, following the work undertaken, the law has now been amended, and related regulations have been introduced. With this, the Minister highlighted that an internationally recognized system has now been introduced. “By the will of God, a system implemented in highly developed countries worldwide has now been introduced. It’s not that every single detail is spelled out. A modern, transparent law that provides certainty to parties investing in the Maldives has been passed. Along with this, businesses exclusively for Maldivians have been defined,” Minister Mohamed Saeed stated.
The Minister shed light on some of the changes introduced through the law. He highlighted the easements provided to the construction industry and the changes brought to prioritize Maldivians in real estate business. Furthermore, the Minister noted that sectors such as logistics have been exclusively reserved for Maldivians. Previously, the sectors open for investment were determined solely by the Economic Minister, but Minister Saeed stated that this decision will now be made at a Cabinet meeting, which includes the President.
“When we reverted to that principle, extensive consultations were held. This approach has also been accepted. Discussions were held at various stages within the Business Council, different ideas were explored, and the principles were established after examining and studying how this is done in neighboring countries. Additionally, the law was enacted with the advice of top Maldivian lawyers. Therefore, today there is trust in this law,” the Minister stated. The government has affirmed that the amendments to the Foreign Investment Law will ensure protection for parties investing in the Maldives. Modern changes have been introduced to the law to provide favorable opportunities for investors.
With the newly introduced changes to the Foreign Investment Law, additional sectors where Maldivian skills and capabilities are deemed higher have been exclusively reserved for Maldivians, or investment opportunities for foreign parties have been narrowed. These include wholesale and retail trade, logistics, general sea transport services, bunkering services, as well as construction projects under 15 million US dollars, and real estate projects under 100 million US dollars. The Ministry of Economic Development and Trade notes that these sectors offer promising opportunities for Maldivians and where they have the capacity to invest.
