Deadlines given for foreigners to withdraw investments from prohibited sectors

The government has set deadlines for foreign investors to withdraw or transfer ownership of their stakes in sectors where foreign investment is no longer permitted.

A new regulation gazetted last week defines the sectors open to foreign investment in Maldives, the limits on ownership, and the transition periods for investors operating in restricted sectors.

Some of the newly prohibited sectors were previously open to foreign participation and currently hold substantial foreign investment. Annex 2 of the regulation specifies the deadlines for affected investors to release or transfer their shares to Maldivian partners.

One-year deadline:

Sea transport services: The withdrawal period depends on the scale of investment:

Domestic logistics services: three to seven years, depending on investment size.

Real estate and residential real estate: Foreign investors must release their shares upon expiry of the project agreement.

The regulation states that the investment amount will be based on the value as of the date the new rules came into force, and no further expansion of these investments will be permitted.

According to the Ministry of Economic Development, investors may apply for a transition period if they had invested while the sector was previously open. Applications must include full investment details, audited financial statements, share structures, contracts, tax clearances, and evidence of ongoing project commitments.