Minimum USD 500M for sustainable township development projects at SEZ

President Dr. Mohamed Muizzu has declared the types of economic activities permitted and minimum investment threshold for Special Economic Zones (SEZ) in the Maldives under the Special Economic Zones Act.

The declaration was made via a presidential decree on Sunday.

The presidential decree categorizes activities permitted in SEZs into two types: investments of not less than USD 100 million, and sustainable township development projects requiring investments of not less than USD 500 million.

Nine types of investments have been included among strategic investments under the minimum investment requirement of USD 100 million. They are:

a) Export-oriented manufacturing activities

b) Transhipment ports, international logistics, ports, airports, bulk breaking, bunkering and docking services

c) Universities, tertiary hospitals, specialty hospitals and world-class research and development facilities

d) World-class Information Communication Technology (ICT) parks and related facilities

e) International financial services and international trade centres

f) Renewable energy sector

g) Activities introducing new technologies currently unavailable in the Maldives

h) Food security sector

i) Gas exploration activities

The decree further states sustainable township development projects requiring minimum investments of USD 500 million must be allocated specifically to sustainable township development components.

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

However, President Muizzu slashed the minimum rate for investments in economic activities in areas falling within the SEZ of the Maldives to USD 100 million via a presidential decree back in 2023.

The current administration had approved the establishment of a floating solar system in the Greater Male' region as the first project under SEZ Act. In this regard, the Ministry of Economic Development and Trade extended the project approval to Canada's Abraxas Power Corp, which it is set to run in partnership with Sungrow Power Supply Co Limited.