SEZ bill passed despite MDP delay request

Parliament’s committee of the whole has passed a major amendment to the Special Economic Zone (SEZ) Act, designating “sustainable townships” as special economic zones, despite opposition calls for more time to study the bill.

The amendment, proposed by People's National Congress (PNC) MP Ibrahim Shujau on behalf of the government, adds a new chapter to the SEZ Act outlining criteria for sustainable townships. These zones are intended to offer modern services and amenities, including luxury tourism facilities, international-standard hospitals, and hospitality training centers.

To qualify, investors must commit over USD 500 million. The bill also requires that at least 60 percent of operational energy be renewable, and mandates food production facilities to reduce imports.

Galolhu South MP Meekail Ahmed Naseem proposed postponing the bill’s review until February 1, 2026, citing the need for consultation with stakeholders including the Maldives Association of Tourism Industry (MATI), the Tourism Ministry, the Economic Ministry, and the public.

Meekail warned that rushed legislation in the 20th Parliament had produced poor outcomes, and alleged the bill was politically motivated to fund the ruling party’s 2028 presidential campaign.

However, PNC parliamentary group leader and Inguraidhoo MP Ibrahim Falaah said the bill was essential for economic recovery and accused the MDP of obstructing progress.

The committee rejected Meekail’s proposals:

• 53 members, including the PNC majority, voted against postponing the bill.

• 54 members voted against seeking stakeholder consultation.

• All nine MDP members on the committee opposed both proposals.

Hoarafushi MP Ali Moosa introduced an amendment to impose a 4 percent property transfer tax on rooms or villas in tourism zones and integrated resort areas. The amendment passed with 55 votes in favor, while five abstained.

The final bill, including the amendment, was passed with 55 votes, with all nine Maldivian Democratic Party (MDP) members voting against it. The committee report was circulated before the meeting concluded.

The proposed chapter also outlines tax incentives for investors developing sustainable townships and specifies the government’s taxation framework for such zones.