Certain business sectors closed to foreign nationals under new foreign investment rules

Under the newly formulated Foreign Investment Act, foreign nationals are now barred from engaging in several business sectors in the Maldives, as the deadline for existing businesses to comply with the new regulations passed last Thursday.

According to the Ministry of Economic Development, a significant number of proposals were submitted during the grace period granted to bring non-compliant foreign businesses into alignment with the new framework. The Ministry is currently reviewing these submissions. Businesses that have already initiated the qualification process must complete all remaining requirements within a timeline set by the Ministry.

Furthermore, the Ministry announced that official notices will be sent under the Foreign Investment Act to businesses that failed to contact the Ministry prior to the deadline. Legal action will be taken against unauthorized operations in accordance with established protocols once the notice period expires.

Sectors Reserved Exclusively for Maldivians:

• Wholesale and retail trade

• Logistics services

• Public maritime transport services

• Bunkering services

• Construction projects valued below $15 million

Joint-Venture Requirements:

For sectors open to foreign investment with local partnership, auditing is a notable area of adjustment. Under the Ministry's new policy, any new auditing firm established in the Maldives must feature at least a 25 percent local Maldivian ownership share.

While a new framework has been introduced to accommodate foreign participation in auditing, the sector has previously been predominantly operated by firms from neighboring countries.