The major economy of the Maldives is flourished on fishing, shipping, and tourism. That means the entire prudence of the financial resources is entrusted on foreign exchange-earners. The government has given significant importance to Foreign Direct Investments (FDI) for reviving the monetary and economic situation of the nation.
The Maldives has witnessed prominent growth in the economy, and development overpowering the challenges. However, there is a lot to be introduced in the country in different industries like construction, shipping, telecommunication, aviation, and banking. The demand of the nation is entirely inclined towards foreign investment, resources, and expertise which can help the country to enhance the services and make the better use of resources.
Why invest in the Maldives
The Maldives is a small country with considerable resources and a transparent legal system. Unlike other countries, it is open to foreign investors and renders the security of international and domestic investment under some policy.
The untapped and natural marine resources and skilled workforce are other stimulations which attract foreign investors to the Maldives. This country is also one of the most glorious places in Asia which magnetize thousands of tourists every year. It is another perk for the investors who can easily earn colossal revenue bringing world-class services and high-rated amenities to the Maldives.
There are already many reputed companies established in the Maldives. Also, several insurance providers, such as Hong Kong Shanghai Banking Corporation, Ernst and Young (E&Y), KGMP, and others, are transforming the Maldives and its development into a new, different realm.
Benefits of investment in the Maldives
- The country gives full freedom to make use of managerial and technical skills of workers.
- As per the law and policy, the foreign investors have the right to 100% foreign ownership.
- The government gives the security of the investment.
- The investors get long term agreements and lease of land. So, there is no requirement of renewal of the contract in a short period.
- The Maldives renders the provision as an overseas arbitrator.
- There are no limitations on foreign exchange and repatriations of earnings or gain of the investors.
- As the government is much concerned about foreign investment in the country, there is separate and ideal rules and regulations for the investment.
- The English language is widely accepted throughout the country. So, there is no barrier of language during any commercial transactions.
- The investment process is straightforward and clutter-free.
As mentioned earlier, the government has proclaimed foreign investment in the Maldives; due to this reason, Foreign Direct Investment (FDI) has always contributed towards the development of the Maldives. There are several challenges like climatic factor, scattered demography, low income, and education faced by the Maldives as the obstacle on the way to economic advancement and expansion. The country is looking forward to more foreign investments in the country for employment creation and overall evolution.
The investment in the Maldives is effortless and secure as the government showcases a positive response to Foreign Direct Investment and offers them a protected environment with official regulations. Law of Foreign Investments (Law:25/79) and Companies Act (Law:10/96) in the Republic of Maldives are the laws modulating and balancing the foreign investments in the country. The exclusive economic zone of the Republic of Maldives contains more regulations taking the investment and business in the Maldives.
Why is Foreign Direct Investment successful in the Maldives
The government has made proper regulations and law for Foreign Direct Investment. The Law of Foreign Investments included in the republic laws of Maldives renders liberation and convenience to foreign trading and investors. It regulates foreign investment in the country. All the foreign investments in the country are divided into two classes, i.e., international tourism investment and non-tourism foreign investment. Foreign investment in tourism is enrolled with the Ministry of Tourism while others with the Ministry of Economic Development and Trade.
The primary reason behind the accomplishment of foreign investment in the Maldives is its transparent economic system, a multitude of resources, political stability, and concern for the development. Also, the rate of development and economic growth has been speeding up because of foreign investment. It has made foreign investment in the Maldives unambiguous and evident.
The Maldives welcomes the investors to the country with a free 30-days tourist visa to explore the country and do the researches required for the investment. After creating a decent prototype for the venture, one can apply for it. After the government authorizes the expenditure, all the employees (either foreign or local) can be recruited as per the general law. The foreign employees have to apply for the visa and work permit following the standard and comprehensive procedure. One can look for the web portal of Maldives Department of Immigration and Emigration for obtaining more information.