107 expat-run businesses shut down in nationwide inspections

The Ministry of Economic Affairs has closed 107 businesses found to be operated illegally by foreigners.

According to the latest statistics released by the ministry, the closures were carried out during special operations conducted in Male' City and the atolls from November last year to July this year.

During this period, the ministry received 447 complaints related to illegal business operations. Following these complaints, authorities inspected 274 businesses. Of these, 107 establishments were immediately closed, while 68 businesses were allowed to reopen after complying with requirements.

The statistics show that around 40 percent of the businesses inspected were shut down due to violations.

The inspections are part of the government’s ongoing campaign to curb illegal businesses in Maldives. The Ministry of Economic Affairs said the initiative aims to ensure a fair and equitable business environment while upholding the law.

The ministry is focusing on identifying and taking action against retail businesses run by foreigners behind the scenes, noting that such practices limit opportunities for small and medium enterprises. Complaints have been increasing regarding foreigners controlling street shops, food outlets and various service establishments.

Under Maldivian law, foreigners are prohibited from running small businesses in their own names. However, the rise in establishments registered under Maldivians while being operated for the benefit of foreigners remains a major challenge for the economy.

To address the issue, the Ministry of Economic Affairs, Maldives Immigration and the police are conducting continuous operations in Male' and the atolls. The ministry said it will continue strengthening complaint handling and taking legal action against illegal operators, urging the public to report such cases to the relevant authorities.