Saeed says Maldives aims to become an open investment destination under new reforms

Tourism is the mainstay of the Maldivian economy, but there are more opportunities to expand the economy, and it is the vision of this government to make Maldives a competitive and open investment destination, Economic Minister Mohamed Saeed said Thursday.

Speaking at a business webinar organised by the Japanese Embassy, Saeed said the government is working to diversify Maldives’ economy and strengthen economic sustainability.

The new Foreign Investment Act, which came into force on December 3, 2024, has created a reliable system for foreign investors, he said.

“At the same time, the reforms will make it easier for investors to establish and expand their businesses with confidence. Our vision is to build an open and competitive investment environment that responds to the needs of international investors,” he explained.

Tourism is the mainstay of the economy. However, there are much wider opportunities in Maldives, he said. The government is working to facilitate investment opportunities in renewable energy, maritime services, fisheries, food production, the digital economy and manufacturing, he said.

The Ministry of Economic Affairs gazetted the Foreign Investment Act in October last year, amending the areas in which foreigners can and cannot invest in Maldives. The amendments were introduced after considering the impact on national security, domestic market competitiveness and the extent to which Maldivian businesses are active in the sector, the ministry said.

The ministry also took into consideration the need for foreign investment and experience in the field, and the improvements that will come from such investment.

Due to Maldives’ debt, its credit rating, which reflects investor confidence, has declined in recent years. However, in June, Fitch, one of the largest agencies, upgraded Maldives’ rating from Double C to Triple C Minus. The government has described it as evidence of increased investor confidence.