The minimum total investment for SEZ is USD 500 million

President Dr. Mohamed Muizzu has today set the minimum total investment requirement for a Special Economic Zone (SEZ) at USD 500 million.

Under the SEZ law, the presidential decree issued today specifies that economic activities that can be conducted in SEZs must have investments of not less than USD 100 million.

This is the same amount that was specified in the presidential decree issued last December.

However, the new decree issued today has established sustainable township development projects that include total investments of not less than USD 500 million in an SEZ.

Among strategic investments, nine types of investments have been included that must have a total investment of not less than 100 million US dollars:

1. Various types of export-oriented manufacturing activities

2. Transshipment ports, international logistics, ports, airports, bulk breaking, bunkering, and docking services

3. Universities, tertiary hospitals, specialty hospitals, world-class research and development facilities

4. World-class Information Communication Technology (ICT) parks and ICT-related facilities

5. International financial services and international trade centers

6. Renewable energy sector

7. Activities that introduce technologies not currently available in the Maldives

8. Food security sector

9. Gas exploration activities

The decree also stipulates that for sustainable township development projects that include investments of not less than USD 500 million, the value must be specifically allocated to the components of sustainable township development.

The SEZ law was passed in 2014. According to the law, the President determines the investment sectors and amounts.

While no projects were implemented since the law's passage, this government has granted the initial permit for the first project under the law through the SEZ Board of Investment last April. The first phase permit for this major solar panel installation project was given to Canada's Abraxas Power Corporation. The technical partner for the project is Sungrow Power Supply Co. Regarding the project, Economic Minister Mohamed Saeed stated that it would cost approximately MVR 1.6 billion.