President Dr Mohamed Muizzu has today ratified the first amendment to the Special Economic Zone Act (SEZ Act). 

The bill was passed in parliament last Wednesday. 

The bill was submitted to parliament by ruling People's National Congress MP for Baarah Ibrahim Shujau. 

The bill was passed without significant changes through votes in favour from 46 out of the 56 MPs in attendance. The 10 opposition MDP MPs in attendance voted against the bill. 

The most major change that this has brought to the SEZ Act is on areas that can be developed as Special Economic Zones (SEZs). As per Article 20 of the existing Act, only industrial areas can be established as SEZs. 

The amendment sets out new provisions which enable sustainable townships to be developed and designated as Special Economic Zones (SEZs).

The Act defines the principles and criteria for the development of such townships. Under the Act, such townships must involve a minimum investment of USD 500 million and feature either integrated tourism or large-scale real estate projects. Both must include luxury tourism services, with real estate developments additionally required to offer upscale housing facilities. Townships set up as such with both services must be managed by the same management. 

The Act also mandates that energy and waste management facilities in townships must be self-sufficient, ensuring sustainable operation. It also requires that a minimum of 60 percent of the zone's energy needs be met through renewable sources. 

Also outlined are specific concessions and incentives for developers and investors in townships.