President Dr. Mohamed Muizzu ratified the Foreign Investment Bill on Tuesday. The bill was passed in the 32nd sitting of the second session of the Parliament on August 22, 2024.
The objective of the bill is to create a conducive environment for foreign capital, technology, knowledge, and skill transfer through investments to increase foreign investment in the country, and to lay down stringent guidelines for the development of the country’s economy.
The bill outlines provisions for identifying investment opportunities for foreign investors in the Maldives, including provisions on investor protection and safety measures, investor responsibilities, and details the terms for compensation and other related provisions.
The bill specifies that foreign investments in the Maldives require prior approval and licensing through the Ministry, detailing the procedures for obtaining these permits and licenses.
In addition, the bill lays down special circumstances under which the investment can be withdrawn by the state and actions that would constitute violations of the law. It also states that if the provisions laid down in any other law on foreign investment, other than Special Economic Zone Act (Act no 24/2014) are in conflict with this Act, this Act will take precedence.
A press conference was held at the President’s Office today, where senior government officials, including the Minister of Economic Development and Trade and the Attorney General, provided further details on the bill.
Following its ratification, the Foreign Investment Act has been published in the Government Gazette and will come into effect in three months from the date of publication. The Act also provides a three-month period for the formulation and publication of necessary regulations and guidelines.
With the Act coming into force, the 45-year-old Law on Foreign Investments (Act no. 25/79), which came into effect on 1st May 1979, will be repealed.