Foreign Direct Investment Policy
A new Foreign Direct Investment Policy has been published in the gazette on 11th February 2020.This new policy consolidates existing practices and new policy changes in foreign investment registration and approval process. The objective of this policy is mainly to increase transparency, predictability, certainty and consistency in the foreign investment approval process and improve the efficiency of this process. Furthermore, it determines areas that are closed for FDIs, areas that require joint venture partnership with Maldivians for FDI approval and areas that are open for 100% FDIs.
The application review process takes 2 working days for applications submitted under the 'Automatic' route, and 5 to 14 working days for applications submitted under the 'Government' route.
Some of the key changes brought by this policy includes:
- An administrative fee of USD 5,000 (United States Dollars Five Thousand) shall be paid by all approved applicants to Maldives Inland Revenue Authority (MIRA) prior to signing the Foreign Investment Agreement.
- The guesthouse market, which was previously closed for foreign investors is now open for foreign investments with a maximum of 49% foreign shareholding.
- Dive Centre & Dive School operation is now categorized as a joint – venture investment with a maximum of 75% foreign shareholding.
- Maximum duration of the Foreign Investment Agreement has been changed to 50 years.
- The initial investment requirement has been determined sector-wise.