Govt plans to expand role of foreign investment to boost economy

The latest revisions to the Foreign Investment Act will expand the role of foreign investments to develop the Maldivian economy, says Mohamed Saeed, the country’s economic minister.

The amendments to the Foreign Investment Act were ratified by President Dr. Mohamed Muizzu earlier on Tuesday.

In a press briefing held at the President’s Office regarding the legislature, Saeed said the government aims to make Maldives a conducive trade environment.

The Foreign Investment Act was enacted in 1979.

Saeed said the new amendments to the draconian law brings modern reforms which will accelerate economic development.

“To expand trade, make Maldives a convenient place for trade, and to develop real estate and other such economic sectors. I believe this law to be boost for Maldivian businesses and foreign businesses that invest in the Maldives,” he said.

Saeed said the new law prioritizes protection of foreign investors.

But he provided assurance that the interests of local businesses will be protected.

Speaking to reporters, Attorney General Ahmed Usham said the government’s biggest goal is to make Maldives an ‘investor friendly’ country.

Usham said the government is working on major legal reforms to make it happen.

“We have initiated efforts to make major legal reforms to make Maldives an investor friendly country. Such laws take a lot of time,” he said.

According to the government, the amendments to the Foreign Investment Act seeks to improve matters related to foreign investors, bring modern reforms, and introduce a framework to protect the interests of foreign investors.

With the new amendments, the government will be required to draft regulations to:

• Promote Maldives among foreign investors
• Establish standards, criteria and policies for issuance of permits for investments
• Establish responsibilities and rights of foreign investors
• Ascertain investment security
• Establish what will be done with respect to bilateral agreements formulated to promote investment and ascertain security of investments

Foreign investors will be required to obtain a foreign investment license under the law.

The law also declares certain considerations that must be made before deciding the sectors where foreign investments will be allowed. This includes,

• The extent to which opening up an economic sector or field for foreign investments poses a threat to national security
• The impact opening up an economic sector or field for foreign investments will have on competitiveness of the sector or field
• The extent of the development of 100% local businesses operating in the economic sector or field that is being opened for foreign investment
• The need for foreign investment in an economic sector or field
• The long-term contribution to national productivity of an economic sector of field