According to the Ministry, the new Foreign Investment Act, which replaces the 1979 law, introduces a modern, transparent, and predictable framework for foreign investors-providing enhanced investment security and aligning with international best practices.
PSM News
On 08 October 2025, the Ministry of Economic Development and Trade has announced the publication of the revised Foreign Investment Entry Requirements under the new Foreign Investment Act (Act No. 11/2024), ratified by His Excellency President Dr. Mohamed Muizzu on 3 September 2024.
According to the Ministry, the new Foreign Investment Act, which replaces the 1979 law, introduces a modern, transparent, and predictable framework for foreign investors-providing enhanced investment security and aligning with international best practices. The Act strengthens investor confidence while supporting the Government's broader vision of sustainable, inclusive, and resilient economic growth.
Endorsed by the Cabinet, the revised Foreign Investment Entry Requirements mark a key milestone in the Government's development agenda to diversify the Maldivian economy, empower Maldivians, and attract high-quality investment. These revisions reflect a balanced approach: enabling greater openness in sectors that require foreign capital and expertise, while strengthening local participation in industries where domestic capacity exists.
The updated entry requirements classify investment sectors into three categories - open to full foreign ownership, joint ventures and closed to new foreign investment.
The ministry also noted that in recognizing that some sectors previously open to foreign investment have now been reclassified, the Ministry affirms that appropriate transition arrangements will be provided to existing investors, and that these arrangements will be fair, transparent, and time-bound, with transition periods generally ranging from one to seven years, depending on the sector and the scale of investment.
Furthermore, the ministry also noted that in assessing transition applications, the ministry will consider the capital committed, compliance with existing regulations, and overall contribution to the Maldivian economy - noting that this approach ensures predictability and fairness, while maintaining the integrity of the Government's new policy directions.
