Maldives Positioned as Preferred Investment Hub Through New Foreign Investment Act

The Maldives has emerged as a preferred destination for international investors, driven by strategic government reforms and a commitment to sustainable development. Minister of Economic Development, Transport and Trade Mohamed Saeed highlighted this progress during the opening ceremony of forums focused on the economies of Small Island Developing States (SIDS). Minister Saeed emphasized that the nation's journey from a least-developed country to developing status was a result of consistent, development-prioritizing policies. Under the leadership of President Dr Mohamed Muizzu, the government is now targeting developed country status, with private investment identified as a critical engine for this transition. A cornerstone of this strategy is the recently revised Foreign Investment Act—the first such update in 45 years. The Minister stated that the legislation provides a transparent and trustworthy framework for foreign capital while ensuring that Maldivian micro, small, and medium-sized enterprises (MSMEs) can compete and benefit from the influx of global business. “Our clear policy is to provide Maldivian businesses with opportunities to compete, participate, and grow,” Minister Saeed remarked. He noted that the government welcomes foreign direct investment as a partner in national development, specifically targeting high-impact sectors including the digital economy, renewable energy, financial services, fisheries, health, and education. The Minister cited several landmark projects as evidence of growing international confidence. These include Google’s “Dhivaru” submarine cable project across the Indian Ocean and the “Ayla Sustainable Township” in Noonu Atoll, both of which represent some of the largest private-sector investments in the country's history. Furthermore, the continued expansion of world-renowned hospitality brands signals long-term confidence in the Maldivian tourism sector. Beyond national borders, Minister Saeed called for greater solidarity among Small Island Developing States. He urged island nations to establish strong governance frameworks and transparent environments to attract investment, suggesting that SIDS should speak with a unified voice when engaging with global investors to maximize their collective bargaining power and economic impact.