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Law on Foreign Investment
in the Rep. of Maldives -The Law No. 25/79
1- a) A Foreign government or a foreign
national or a body incorporated outside
the Republic of Maldives may invest in
the Republic of Maldives, in accordance
with the terms of this Law. The Government
of the Republic of Maldives or any part
representing the Government, or Maldivian
nationals or a body incorporated in the
Republic of Maldives may collaborate in
such investments.
b) A Foreign Investment may be made in
the Republic of Maldives in accordance
with section 3 hereof, in the Ministry
of Tourism if the investment is in tourism,
and in the Ministry of Trade and Industries
in all other investments After signing
an agreement and having the investment
duly registered in the Ministry of Trade
and Industries.
2- The nature and the areas of any Foreign
Investment that could so be made in the
Republic of Maldives shall be decided
by the Ministry of Tourism should the
investment be tourism related and by the
Ministry of Trade and Industries in all
other investments. The said investments
shall have a capital acceptable to the
Government of the Republic of Maldives.
3- All foreign nationals investing in
tourism shall sign an agreement with the
Ministry of Tourism. Similarly those investing
in all other sectors shall sign an agreement
with the Ministry of Trade and Industries.
This agreement in respect of the investment
shall set out the terms and conditions
and the manner of implementation of the
investment scheme and programme.
4- Of those foreign parties referred
to in section 1. a) of this law, only
a bank or a Government recognised by the
Government of the Republic of Maldives,
or a person or body whose financial status
is either guaranteed by a bank or such
institution or is acceptable to the Government
of the Republic of Maldives, may invest
in the Republic of Maldives.
5- An investment made in the Republic
of Maldives will be permitted to carry
on operations and activities for the full
1 term of the agreement if there is compliance
with the Law on Foreign Investments in
the Republic of Maldives. And such investments
will be duly facilitated by the Government
of theRepublic of Maldives.
6- The Government of the Republic of
Maldives may, without giving any notice
or after giving such notice that it deems
necessary, suspend aninvestment before
the expiry of the period under the agreement,
either where the Foreign Investor indulges
in an activity detrimental to the security
ofthe country or where such temporary
closure is necessary in the opinion of
the Government of the Republic of Maldives
in the interests of national security.
Any temporary closure referred to herein
would not lead to the Government of the
Republic of Maldives or any party representing
the Government, or Maldivian nationals
incurring any liabilities therefore or
thereby nor would it relieve the Foreign
Investor of this obligations under an
agreement other the agreement referred
to in Section 3 of this Law, subsisting
at the closure referred to in this Section.
7- If, after due investigations, it cannot
be concluded within sixty days of the
temporary closure of an investment referred
to in Section 6 of this Law, that the
Foreign Investor had, infect, indulged
in an activity detrimental to the security
of the Republic of Maldives or even contemplated
such an act, then the Government of the
Republic of Maldives will give fair compensation
to the foreign Investor and allow the
Foreign Investor to resume the investment.
8- If a Foreign Investor fails to comply
with the Laws of the Republic of Maldives
and if there be failure to comply with
the same even after a notice bv the Government
of the Rep. of Maldives.
9. Capital belonging to an investment
that is closed under Section 6 and 8 of
this law would be permitted to be taken
out of the country in a manner to be agreed
on by the parties.
10. If the investment operations in the
Republic of Maldives be such that local
raw materials could be used, such items
shall be obtained and in the process.
Provided however, where suitable materials
for the processes are not obtainable in
sufficient quantities locally, they may
be obtained from outside the Republic
of Maldives.
11. Maldivian nationals shall be employed
in investments in the Republic of Maldives
except in those cases where employment
of non-nationals becomes necessary.
12. If the items produced by the investment
is a requirement of the Maldivian people,
a percentage of the production shall,
if necessary, be required to be marketed
in the Republic of Maldives in a manner
to be agreed to by both parties.
13. The profits of the investment in
the Republic of Maldives may be remitted
out of the country under the terms of
the agreement entered into under Section
3 of this Law.
14. The Government of the Republic of
Maldives may waive duty and tax investments
carried out in the country for a period,
the Government, at its discretion specifies.
The tax referred to in Law No. 15/79 (Law
on Tourism in the Maldives) does not come
under the provision of this Law.
15. In the event of disagreement on any
matter in regard to the investment made
under this Law and on failure to reach
an agreement by discussion between the
two parties concerned, the matter in dispute
shall be dealt with in accordance with
the agreement.
16. As from the date of operation, this
Law will apply to all Foreign Investments
to be made in the Republ ic of Maldives
and also to those already established
in the country.
17. In this Law:
a) "Foreign Investment" means
the goods, money and services brought
into the Republic of Maldives by Foreign
Governments, bodies or Nationals as are
referred to in Section 1 and 4 hereof,
to undertake an economic activity in the
Republic of Maldives, exclusive of those
imported by them under Law No. 4/79 relating
to Business undertakings of Foreign Nationals
in the Republic of Maldives.
b) "Capital" means money and
property.
c) "Foreign Investor" includes
the shareholders, director~, managers
and all the employees of the investment.
d) "Investment in Tourism"
means the construction or the management
of a Tourist Resort or a Guest House as
referred to in the Note to Law No. 15/79.
e) The singular as used herein shall
include the plural and vice versa.
Note: This Law No. 25l79 (Law on Foreign
Investment in the Republic of Maldives)
was amended by the Citizens' Majlis I
February 1989 and came into effect
on 9 February 1989.
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