Maldives Revises Foreign Investment Entry Requirements and Introduces Transition Framework
8 November 2025
On 8 October 2025, the Government of Maldives issued new Foreign Investment Entry Requirements identifying business sectors in which foreign investors can invest, along with a Transition Framework to guide businesses affected by the recent changes. The entry requirements take immediate effect from 8 October 2025 and will remain in force until further review and Cabinet-endorsed updates are published.
Legislative Background
On 3 December 2024, the new Foreign Investment Act (Law No. 11/2024) (the “Foreign Investment Act” or “FI Act”) came into force. The FI Act mandated the Government to publish, within three months of commencement, a revised investment list and associated entry requirements setting out the applicable criteria—including maximum foreign shareholding limits, minimum initial investment thresholds, and any additional conditions on investment. For more details on the new Foreign Investment Act, see our earlier publication here.
On 8 October 2025, pursuant to the FI Act, the Ministry of Economic Development and Trade published the revised Investment List (or New Investment List) and the new foreign investment entry requirements, determining which business sectors are open, restricted or closed to foreign ownership.
Pursuant to the coming into effect of the New Investment List, it replaces previous administrative policies and sectoral decisions. The Foreign Investment Act and the New Investment List together, now, form the core framework governing foreign direct investment (FDI) in the Maldives.
Overview of the New Investment List
The new Investment List categorizes business activities based on the level of permissible foreign participation. Broadly, it:
(i) Specifies activities open to full foreign ownership;
(ii) Identifies restricted activities, where foreign investment is subject to specific conditions or local partnership requirements; and
(iii) Excludes certain sectors entirely, designating them as closed and preserving them for Maldivian nationals.
The changes made in the New Investment List have been stated to be made in consideration of national security, market competitiveness, domestic capacity/readiness, need for foreign capital/know‑how, long-term productivity, and employment considerations.
Foreign investment approvals are now more tightly linked to defined activities, stated minimum investment thresholds, and where applicable, concession arrangements or agreements with Government or sector regulators. Investors should assume project-specific approvals where noted, with durations commonly aligned to executed contracts or lease terms.
Sectors Open, Restricted or Closed: Selected Highlights
Open or negotiable pathways remain in strategic areas, typically with thresholds and/or concessions:
| Sector | Foreign Investment Conditions |
| Agriculture, livestock, aquaculture | Open at commercial scale with minimum thresholds – USD 500,000 for crop cultivation and USD 1,000,000 for poultry, animal production and aquaculture. |
| Energy, water and waste | Government or employer-contracted utilities, water/sewerage and waste services proceed via concessions/agreements. Private-sector renewable projects have a USD 1,000,000 minimum threshold. |
| Financial services and insurance | Permitted with USD 1,000,000 minimum investment and subject to regulator agreement. |
| Hospitality and tourism | Tourist resorts and resort hotels are subject to negotiation by activity, scope and scale. Hotels (non‑resort) have a USD 2,000,000 minimum investment requirement. Integrated tourism requires USD 20,000,000. Guesthouses, watersports and dive centres are open under JV participation with a minimum investment amount of USD 250,000. Tourist vessels are open to 100% ownership subject to vessels having 40 beds and above with a minimum investment amount of USD 1,000,000. |
| Information and Communication Technology (ICT) | Telecommunications (USD 5,000,000) and data centres/cyber security are subject to negotiation and concession/arrangements with Government. |
| Manufacturing | Broadly open at commercial scale with USD 1,000,000 minimums across multiple subsectors (e.g., fish products, beverages, textiles, paper and paper products, chemicals and chemical products, electric equipment and metals). Pharmaceuticals require USD 5,000,000 and Government concession/arrangement. |
| Real estate | Commercial and industrial real estate is open, typically USD 15–30m (subject to agreements) and above USD 30m. Residential development is closed below USD 100m; projects above USD 100m open subject to executed agreements with Government. Strata acquisition of individual resort units is permitted at USD 250,000. |
| Transport and infrastructure | Domestic air transport, land transport (excl. taxi services), airport/port O&M permitted subject to concessions; international air transport services as a Maldivian flag carrier has a USD 5,000,000 minimum with foreign shareholding capped per civil aviation regulations. General sea transport is closed; luxury sea transfer is open with a USD 1,000,000 minimum per vessel and specification clearance. |
| Wholesale and retail | Franchising is open at USD 1,000,000, subject to a valid franchise agreement and specified franchisor criteria. Trading of sustainable electric vehicles/vessels with supporting infrastructure is permitted at USD 1,000,000, subject to regulatory clearance. |
Sectors closed to new foreign investment in several service and trade areas, include:
- Building maintenance and landscaping services (general services);
- Office administrative and business support activities;
- Certain construction segments (e.g., buildings below USD 15m; resort construction below USD 10m);
- Hospitality sub‑sectors (e.g., food and beverage, other accommodation, travel agencies);
- Human resource recruitment;
- Domestic and international logistics services (including GSA/CSA);
- Postal/courier;
- Specific manufacturing lines (e.g., rubber/plastics, handicrafts);
- Security services; and
- General retail and wholesale trade (including construction materials).
Transition Framework for Existing Investors
Existing investors with prior approvals and substantial commitments in newly restricted or closed sectors will benefit from time‑bound transition arrangements. Transition periods generally range from 1 to 7 years, depending on sector and investment scale, with potential extensions in exceptional cases—such as investments exceeding USD 10 million where viability considerations (e.g., cost recovery or loan servicing) justify longer periods.
Existing operations may continue for the duration of the current Foreign Investment Agreement (FIA) period. However, no expansion in restricted sectors is permitted after the commencement of the transition period, and businesses must achieve full compliance by the end of the prescribed timeframe.
A Foreign Investment Transition Committee within the Ministry will oversee the process, setting timelines and permitted scopes for affected businesses after evaluating individual transition requests on case‑by‑case basis. Reviews will consider investment scale, regulatory compliance, and economic contribution.
Annex II to the new framework outlines sectoral transition periods, for example:
- 1 year for general/cargo/passenger sales agents and for accounting and auditing;
- 3 to 7 years for sea transport and domestic logistics, depending on verified investment size (eg: USD 10m = 7 years);
- Wholesale and retail may receive up to 1 year, with no new outlets permitted.
In exceptional, verified cases above USD 10 million, longer transition periods may be granted to ensure investment viability.
Application Process and Timelines
A structured process applies for transitional review:
- Submit a Transition Request with supporting documents to fiu@trade.gov.mv;
- The Ministry will conduct preliminary due diligence, and the Committee may request additional evidence or presentations;
- Decisions issued through a Transition Arrangements Letter setting out timelines and exit conditions;
- A re‑evaluation route is available.
Complete applications will be processed within 60 working days.
The Ministry has indicated that it will publish a document/procedural guide outlining the application process to be followed in applying for transitional review.
Next Steps for Investors
The revised entry requirements take effect from 8 October 2025. Investors are encouraged to review their current or planned projects against the updated sectoral classifications and prepare for any necessary restructuring, concessions, or contractual arrangements.
While the New Investment List is a relatively new policy, continued observation of its practical implementation — particularly regarding transition arrangements — will be key. The Ministry has committed to ongoing stakeholder engagement to support a smooth and transparent transition.
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We remain available to advise investors on classification, specific requirements, and related documentation, as well as engagement with the Ministry and Transition Committee.
