The Ministry of Economic Development and Trade has dissolved 28 foreign companies operating within business sectors exclusively reserved for Maldivians, following the completion of legal procedures. This action was taken in alignment with the new requirements established under the Foreign Investment Act ratified in 2024.
The primary objective of this legislation is to safeguard sectors within the local capacity for Maldivians, while opening opportunities for foreign investment in fields requiring external expertise. Consequently, foreign investment has been restricted in sectors such as wholesale and retail trade, logistics, maritime transport, and small-scale construction and real estate projects below specified thresholds. While existing foreign entities in these sectors have been granted a transition period to pivot to other industries to mitigate financial loss, the law also facilitates opportunities for joint-venture operations in certain designated areas.
