Maldives President Approves New FDI Act to Enhance Investor Confidence and Drive Economic Reforms

Maldives President Mohamed Muizzu has approved a new Foreign Direct Investment (FDI) Act aimed at modernizing the country’s investment framework and boosting investor confidence, according to state media.

The previous FDI Act, in place for 45 years, no longer reflected the current global investment landscape and economic conditions, PSM News reported on Tuesday. The new Act is designed to define the sectors open to foreign investment, establish regulations for investment approvals, and ensure protections for investors.

Economic Development and Trade Minister Mohamed Saeed highlighted that the new legislation is intended to increase investor confidence in the Maldives and improve access to financing from banks and financial institutions. He emphasized President Muizzu’s commitment to significant economic reforms that will enhance business opportunities, promote a sustainable business environment, and stimulate trade.

The revised FDI Act is set to play a crucial role in expanding foreign investment and driving economic growth in the Maldives. Saeed noted that the government aims to transform the Maldives into a more favorable trade environment, supporting sectors like real estate and other economic areas.

Introduced in 1979, the previous Foreign Investment Act was deemed outdated. Saeed stated that the new amendments bring modern reforms designed to accelerate economic development and create a more welcoming environment for both local and foreign businesses.

Attorney General Ahmed Usham added that the government’s primary goal is to make the Maldives an “investor-friendly” country. He mentioned ongoing efforts to implement major legal reforms to achieve this goal, although such changes require time.

The government anticipates that the new FDI Act will address issues related to foreign investment, modernize regulations, and establish a framework to protect the interests of international investors, while also safeguarding local business interests.