Maldives Foreign Investment Rules Near One-Year Transition Mark

The Maldives' revised foreign investment rules approach their first anniversary on 8 October, with one-year transition periods listed for several categories of existing businesses in restricted sectors.

The Ministry of Economic Development and Trade's October 2025 announcement introduced new entry requirements and a case-by-case transition process for affected investors.

The framework does not assign a single exit date to every foreign business. A ministry committee determines the permitted period and conditions for each applicant and issues a Transition Arrangements Letter.

The published arrangements list one-year periods for general, cargo and passenger sales agents, accounting and auditing services, and service-based businesses. Wholesale and retail trade has a maximum transition period of one year, with no new outlets or expansion during that period.

Different periods by investment

The transition annex provides longer periods for sea transport, domestic logistics and businesses with substantial investments.

For established and implemented investments in these categories, the listed periods are three years for investments below US$5 million, five years for investments between US$5 million and US$10 million, and seven years for investments above US$10 million.

The provisions apply to the approved business scope. They do not permit expansion into closed or restricted activities during the transition.

Residential real estate projects receive transition arrangements based on their executed project agreements. The committee may consider more than seven years for verified investments substantially above US$10 million where documents establish that extra time is needed to recover investment costs or service loans.

The original announcement also says existing investments may continue for their approved Foreign Investment Agreement period. It assigns the committee responsibility for determining the applicable timeline and scope of operations in each case.

The transition committee is required to seek consensus when deciding a case. If consensus is not reached, the annex provides for a majority vote. The ministry then communicates the decision in writing, including the permitted continuation period and the conditions attached to that investor's operations.

Ownership rules differ by activity

The entry requirements divide activities into those open to full foreign ownership, those with ownership or joint-venture conditions, and those closed to new foreign investment.

Accounting and auditing activities allow up to 75 per cent foreign shareholding with a minimum investment of US$250,000. General retail trade, including online trading, is closed to new foreign investment.

Within tourism services, travel agency, tour operator and reservation activities are listed as closed to new foreign investment. Water and sports activities allow up to 49 per cent foreign ownership, while dive centres and dive schools allow up to 65 per cent, both with a US$250,000 minimum investment.

Affected existing investors submit transition applications with supporting documents such as audited accounts, tax clearance, ownership details and project commitments. The ministry carries out an initial assessment before referring complete cases to the committee.

Investors may be asked to provide further documents or present their case. The published process allows re-evaluation of a decision with additional documentation or representation. The ministry's announcement sets a maximum of 60 working days for processing complete applications.