The government has prohibited foreign ownership in several business sectors under newly implemented foreign investment regulations, marking a significant shift toward prioritizing Maldivian participation in key industries.

The Ministry of Economic Development and Trade on Thursday published the new foreign investment principles in the Government Gazette. 

These regulations were formulated under the Foreign Investment Act, which was ratified in September last year.

According to Economic Minister Mohamed Saeed, the new rules aim to expand opportunities for Maldivians and create a more favorable environment for local investors. 

Minister Saeed stated that these regulations will strengthen Maldivian participation in the economy and open new avenues for local investment.

The regulations clearly outline sectors open to foreign investment, those allowed only through joint ventures, and areas now exclusively reserved for Maldivians.

Sectors Reserved for Maldivians:

- Wholesale and retail trade

- Logistics services

- Local maritime transportation services

- Bunkering services

- Construction projects valued below USD 15 million

The ministry said the new framework will also enhance joint venture opportunities in sectors that require foreign expertise and technical assistance. 

Among the areas highlighted, the auditing sector stands out as one where joint ventures are now mandatory. 

Under the new rules, auditing firms must include at least 25 percent Maldivian ownership.

Currently, a large share of auditing services in the Maldives is provided by firms affiliated with neighboring countries. 

The ministry noted that the updated policy aims to promote local involvement in such fields while maintaining avenues for foreign collaboration where necessary.

According to the Economic Ministry, the regulations were formulated following extensive consultations with the Cabinet, relevant government agencies, investors, and industry stakeholders.

The ministry stated that the guiding principle of the new framework is to reserve sectors in which Maldivians are thriving for Maldivians while keeping open to foreign investors those areas where domestic capacity remains limited.