New Foreign Investment comes to force 45 years after first Act

Foreign investment opportunities open under the newly effective Foreign Investment Act (Law No. 11/2024), ratified on September 3, 2024.

The Act aims to create a conducive environment for foreign capital, technology, knowledge, and skill transfer through investments to increase foreign investment in the Maldives, and lay down stringent guidelines for the development of the country's economy.

The Act stipulates provisions for identifying investment opportunities for foreign investors in the Maldives, including provisions on investor protection and safety measures, investor responsibilities, and details the terms for compensation and other related provisions.

Beyond this, the Act also specifies that foreign investments in the Maldives will require prior approval and licensing through the Ministry of Economic Development.

Moreover, the Act lays down special circumstances under which foreign investments can be withdrawn by the state. Additionally, it specifies the actions that would constitute as violations of the law, and stipulates the provisions laid down in any other law on law on foreign investment, other than the Special Economic Zone Act, are in conflict with this Act.

A foreign investment legislation was first implemented in the Maldives on May 1, 1979.

The new Act has come to effect 45 years after the first legislation on foreign investment was enacted.

With the new Foreign Investment Act coming into effect, the previous law will be repealed officially.