Investment Climate
As an advocate of free enterprise, pro market policies are strongly embedded in government’s economic vision which promotes a liberal and a transparent trading and commercial environment. With liberal investment policies, including the right to incorporate businesses with 100% foreign ownership, no restriction on repatriation of profits and a highly liberal trade policy regime, the Maldives is ideal for thriving investments. The process of introduction of regulatory reforms to maximize investment security is underway, including the enacting of a Special Economic Zones Act to facilitate special economic incentives and a flexible regulatory environment for mega investment projects.
InvestMaldives – A one-stop shop has also been established to guide investors at every stage of the investment process and will pave the way for speedy commercial operations.
Incentives for Foreign Investments
- Right to 100% foreign ownership.
- Legally backed investment guarantee.
- Provision for overseas arbitration of disputes
- Long term contractual agreements and long term lease of land
- Freedom to use foreign managerial, technical and unskilled workers.
- No foreign exchange restrictions.
- No restrictions on the repatriations of earnings or profits.
Special Economic Zones
Special Economic Zones established by law, offers a tremendous opportunity for investors looking at investing in mega projects in the Maldives. The SEZ Law facilitates a flexible regulatory environment for mega investments of strategic significance to the country, and investors planning to invest a minimum of US$ 150 million can reap significant benefits from the special economic incentives it offers.
The SEZ framework also provides strong protection for developers as well as investors in special economic zones.
Strategic Areas Considered for SEZ Investments
- Export processing activities
- Transshipment port, international logistics, port, airport, bulk breaking, bunkering, docking services
- University, tertiary hospital, super specialty hospital, and research and development facilities
- Information Communication Technology (ICT) parks and related facilities
- International financial services vi) Oil & Gas exploration
- Initiatives that introduce new technologies to the Maldives
Incentives Under the Special Economic Zones Law
- Exemption from business profit tax
- Exemption from goods and services tax
- Exemption from withholding tax
- Flexible procedures in foreign employment
- Exemption from taxes on sale and purchase of land
Unsolicited Proposals Policy
Pursuant to clause 10.27 of the Public Finance Regulations published under the Public Finance Act, the government has issued the Unsolicited Proposals Policy (USP Policy) to promote private sector participation in the country’s development, that has been published in the government gazette on 28th January 2019.
The USP framework offers the private sector the opportunity to submit proposals to the Government at their own initiations. It aims to harness private-sector innovation and capabilities in the delivery of strategic projects of the government, while protecting public policy objectives and intellectual property rights, encouraging competition, and ensuring transparency and accountability.
