Local companies to be prioritized to avoid real estate money outflow

Finance Minister Moosa Zameer has said today that the government is implementing a special policy to ensure that profits from the real estate sector remain within the country, by giving priority to Maldivian companies.

Speaking at a ceremony held at Barcelo Nasandhura today to hand over 206 development projects to local companies, Minister Zameer said that a large share of the Maldives’ real estate business has been taken over by foreign companies, who withdraw the proceeds abroad through the local financial and banking system.

“A large share of the real estate market in the Maldives has been turned over to foreign companies. They are rapidly converting real estate proceeds into US dollars and transferring them abroad,” said Zameer.

He said the Finance Ministry has instructed state-owned enterprises to prioritize domestic contractors, suppliers, and businesses to address this issue — a move that has already resulted in many new project awards to Maldivian firms.

“The aim is to uplift local small and medium enterprises, especially those that contribute significantly in taxes, to new heights,” he added.

Zameer said the government is also working to make the banking sector more supportive of local businesses. Under the contractor financing system, funds will be made available to companies to ensure smooth progress of the projects.

“Maldivian businesses will receive equal access to financing under contractor financing rules,” the minister said, noting that these projects form part of a broader investment framework designed to manage risk, ensure timely payments, and enable proper monitoring.

“Banks will also gain from this arrangement ensuring profitability while facilitating financing for more projects,” he added.

Today’s ceremony saw the signing of 206 development projects across 123 islands, awarded to 53 different Maldivian companies.