President Muizzu Sets Minimum Investment Thresholds for Major Cross-Subsidy Development Projects

President Dr. Mohamed Muizzu has issued a new presidential decree establishing minimum investment thresholds for contractors seeking to participate in cross-subsidy investment projects. This move defines the financial eligibility required for private sector entities to undertake key national developments under the Maldives Tourism Act. Under the decree, the government is mandated to publish minimum investment thresholds annually in the Government Gazette. This framework is designed to accelerate tourism growth, bolster critical infrastructure, and enhance the archipelago's climate resilience and national security. By setting clear financial benchmarks, the administration aims to ensure that only capable contractors manage high-stakes public works. The scope of eligible projects is broad, focusing on initiatives that provide systemic benefits to the state. Key areas include land reclamation for tourism and public services, airport expansions, and the development of social housing. The decree also covers the construction of causeways linking islands, prison development, and the installation of essential utilities—such as water, electricity, and waste management—in newly dredged areas. Chief Government Spokesperson Mohamed Hussain Shareef told PSM News that the current decree introduces a more flexible approach compared to last year's resolution. Rather than listing every project individually, the government has adopted broader descriptions of eligible initiatives. This shift allows the state to adapt to evolving development priorities without needing to constantly revise the legal framework, while still maintaining strict investment thresholds. This strategic adjustment is expected to increase private-sector participation by providing a more predictable investment environment. By streamlining the eligibility process, the government intends to increase transparency in the allocation of cross-subsidy resources and speed up the delivery of the Maldives' ambitious national development agenda.