Minimum rate for SEZ investment slashed to USD 100 million

The minimum rate for investments in economic activities at areas falling within the Special Economic Zone (SEZ) of the Maldives has been slashed to USD 100 million.

USD 150 million was the minimum rate set previously during former president Abdulla Yameen Abdul Gayyoom’s administration.

The rate was revised by President Dr. Mohamed Muizzu on Sunday via a presidential decree.

Areas of investment as per the decree include;

• Manufacturing works that are export-oriented
• Transshipment port, international logistics port, airport, bult breaking, bunkering and docking services
• University, tertiary hospital, specialty hospital, world-class research and development facility
• World-class Information Communication Technology (ICT) park and ICT-related facilities
• Renewable energy
• Food security
• Gas exploration

As per the decree, in reviewing proposals from the financial sector, the value of investment will be calculated as the fixed investment by the developer for the project and the capital investment committed by the investor to commence the financial service.

The decree also states that the expenditure on strategic investment included in the total investment proposed by the developer must not exceed other components of business included in the investment.

The SEZ Act was introduced in 2015.

President Muizzu, previously noting the project will be continued, has stated that the laws pertaining to the project will be implemented.

Sunday’s decree states details of projects under SEZ will be disclosed via a presidential decree by February each year in accordance with the advice of the Board of Investment.