President ratifies SEZ amendments for sustainable township investment

President Dr. Mohamed Muizzu has ratified the Special Economic Zone (SEZ) Act amendment on Monday, officially designating “sustainable townships”, areas developed with modern services and infrastructure, as special economic zones.

These zones are expected to attract large-scale investment and offer integrated tourism and residential developments.

During Sunday’s Whole Parliament Committee meeting, the opposition Maldivian Democratic Party (MDP) requested more time to review the bill and called for consultations with stakeholders, including the Maldives Association of Tourism Industry (MATI), the Tourism Ministry, the Economic Ministry, and the public.

However, the ruling People’s National Congress (PNC), which holds a supermajority in Parliament, pushed for swift passage. PNC parliamentary group leader Ibrahim Falaah argued the bill was vital given the country’s current economic challenges, accusing the MDP of obstructing progress.

The bill was passed with 46 votes in favor and 10 against. All 55 PNC members supported the bill, while nine MDP members opposed it.

The amendment, originally proposed by Baarah MP Ibrahim Shujau on October 20, adds a new chapter to the SEZ Act detailing the criteria for sustainable townships. To qualify, investors must commit over USD 500 million. Each township must include luxury tourism facilities, an international-standard hospital, and a hospitality training center.

Additional requirements include:

• At least 60% of operational energy must be renewable.

• Food production facilities must be established to reduce imports.

• Self-sufficient infrastructure for energy and waste management is mandatory.

The bill also outlines tax incentives and concessions for developers investing in sustainable township zones.