Why invest in the Maldives?
Foreign Direct Investments (FDI) has always played a crucial role in the economic development of the Maldives. The Government acknowledges the importance of FDI and recognizes its role in economic development and employment creation.
Maldives has continued to develop at a steady pace during the last twenty years. The economy has remained resilient amidst the shocks the world has seen during the period. Pro-market policies embedded within the government’s economic vision contribute to a strong, liberal, and transparent trading and commercial environment. In its drive to build a strong and stable economy, the government has implemented several policies that open up attractive opportunities for foreign investors.
Maldives has enjoyed strong economic growth coupled with considerable development of the country’s infrastructure and connectivity. The economy has grown at an annual rate of 6.4 percent during the five years prior to the COVID-19 pandemic. By 2019, annual GDP has increased to US$ 5.6 billion with a per capita GDP of US$ 10,541. Although the pandemic has dampened economic growth, early signs in the recovery of key economic sectors indicate that the country can bounce back to its expected economic performance in a relatively short period of time.
Maldives is committed to further diversify its economy by facilitating investment in targeted sectors such as construction, agribusiness, transportation, energy, and the financial sector by leveraging the distinct advantages that provide such economic opportunities. There is untapped potential in natural marine resources and in the young, dynamic workforce that the country has to offer.
Capitalizing on the numerous benefits of investing in the Maldives, many reputed international brand names have established their investments in the country. Among them are world renowned resort investments by international hotel chains such as Hilton, Four Seasons, One & Only, Club Med and numerous other regional brands. Other foreign investments in the Maldives are concentrated in the transportation and telecommunications sectors, water production and distribution, and in the financial sector. Several global brand names such as Hong Kong Shanghai Banking Corporation (HSBC), Ernst and Young (EY), PricewaterhouseCoopers (PwC), KPMG and many reputed insurance providers have established themselves in the Maldives.
Investing in the Maldives
Maldives continues to attract foreign investment, particularly investments which are capital-intensive, enhance the transfer of technology, introduce new skills, while remaining environmentally friendly.
Foreign investors, irrespective of their size, are encouraged to enter and operate in the Maldives. Small investors are encouraged to form joint ventures with Maldivian nationals or companies registered in the Maldives. Investors making investments in excess of US$5 million face no ownership restrictions and are free to operate as wholly owned foreign investments if desired.
Investment Incentives
- 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 repatriation of earning or profits.
Investment Regulations
- Law of Foreign Investments in the Republic of Maldives (Law: 25/79)
- Companies Act of the Republic of Maldives (Law: 10/96)
- Regulations Governing Duty Free Businesses in Maldives
- Regulations for Issuing Licenses to Fish in the Exclusive Economic Zone of the Republic of Maldives
For more information:
Visit Ministry of Economic Development to find out more about regulations and procedures concerning investment in the Maldives.
Visit the Maldives Monetary Authority for up-to-date statistics and research on the Maldivian economy.
Visit Invest Maldives for information on the latest investment opportunities in the Maldives.
Visit Invest Tourism Maldives for information on the latest investment opportunities in the tourism sector.
Entry Permits and Visa Requirements
Those intending to invest in the Maldives may visit the Maldives on a free 30-day tourist visa and carry out any work or research relating to making an investment in the Maldives. Once an investment is approved by the Government, all foreign employees recruited for the operations should follow the normal process of obtaining a work permit.Further information on entry requirements, types of visas, and tourist visa extensions is available on the website of the Maldives Department of Immigration and Emigration.