29 Foreign Investments Dissolved as Maldives Enforces Sectors Reserved for Locals

Twenty-nine foreign investments operating in sectors now reserved for Maldivians have been dissolved, Economic Development, Transport and Trade Minister Mohamed Saeed said on 13 October.

Speaking at a press conference, the minister said 150 foreign investments must comply with the requirements set under the policy formulated in connection with the Foreign Investment Act, which took effect in 2024. Seventeen have submitted applications to comply, according to the ministry’s account of the briefing.

The ministry did not name the 29 investments or say which sectors they operated in. It also did not say how many of the other investments are under review or have received formal notices.

Sectors Closed to Foreigners

According to the ministry, the sectors in which foreign nationals are now barred from operating include:

• wholesale and retail trade
• logistics
• general sales agents for airlines operating in the Maldives
• passenger sales agents and cargo sales agents

Residential real estate projects valued below US$100 million and general sea transport services are also reserved for Maldivians.

Foreign investors may work in accounting, auditing and information technology only if Maldivians hold at least 25% of the business.

Transition Period Ended on 8 October

The figures follow the end, on 8 October, of the one-year transition period for foreign-owned wholesale and retail businesses and airline sales agents. In an announcement that day, the ministry said activity in those sectors after the deadline, without meeting the applicable requirements, may breach the Foreign Investment Act (Law No. 11/2024).

It said companies that had not engaged with it by the deadline would receive formal notices setting a period to take the necessary steps, including stopping activities that are not permitted. Failure to comply may be a contravention under section 23 of the Act and may lead to enforcement under sections 24 and 25.

Businesses that remain in these sectors by transferring ownership to Maldivians must show “meaningful and substantive local ownership”. The ministry said it may examine the price paid, the source of funds, beneficial ownership and any continuing rights of the foreign seller.

The transition framework gives longer periods of up to seven years to sea transport, domestic logistics and businesses with substantial investments, depending on the amount invested.

How the Rules Began

The Foreign Investment Act was ratified on 3 September 2024. The ministry issued the revised Foreign Investment Entry Requirements on 8 October 2025, listing general retail trade, including online trading, as closed to new foreign investment.

On 23 September 2026, the ministry issued a notice naming eight companies with wholesale, retail or sales-agent business objectives that it said it had been unable to contact.

Affected companies are directed to Invest Maldives’ Foreign Investment Unit, at fiu@trade.gov.mv or on 3333181 and 3333182.