General Information
Foreign Direct Investments (FDI) has always played a crucial role in the economic development of the Maldives. The Government acknowledges the importance of foreign investment and recognizes its contribution to economic development and employment creation.
The Law on Foreign Investments in the Republic of Maldives (Law 25/79) governs foreign investments in the country. Foreign investments in the tourism sector are registered with the Ministry of Tourism while all non tourism foreign investments are registered with the Ministry of Economic Development and Trade.
The success of foreign investments in the Maldives can be attributed to its open and liberal economic environment, relative political stability and the consistent growth of the economy, which has achieved an average annual growth rate of 7.5 percent over the last 15 years. Foreign investors are offered a simple and transparent policy environment and continuous efforts are being made to make the investing environment more predictable and transparent.
Capitalizing on the numerous benefits of investing in the Maldives, many reputed international brand names have established their investments in the country. Amongst them are world class 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 transport and telecoms sectors, water production and distribution, and in the financial sector. Many global brand names, such as Hong Kong Shanghai Banking Corporation (HSBC), Ernst and Young (E&Y), Price Waterhouse Coopers (PWC), KPMG and many reputed insurance providers have established themselves in the Maldives.
Foreign investments, irrespective of their size, are encouraged to enter and operate in the Maldives. However, small investors are encouraged to form joint ventures with Maldivian nationals or companies registered in the Maldives. For large investments where the size of the investment is in excess of 5 million United States dollars, there is no restriction on the ownership of the investing company, and may therefore choose to operate as wholly-owned foreign investments .
