The Ministry of Economic Development and Trade has published updated regulatory guidelines under the Foreign Investment Act, substantially broadening the negative list of commercial sectors reserved exclusively for Maldivian citizens and imposing stricter domestic ownership thresholds on international ventures.
The revised regulatory framework, which takes immediate effect, is intended to safeguard micro, small, and medium-sized local enterprises while redirecting foreign direct investment into high-capital, technologically advanced industries.
Expanded negative list and domestic equity rules
Under the updated provisions, retail and wholesale trade, domestic air and maritime cargo transport, passenger ferry operations, and customs brokerage services are strictly closed to foreign investors and reserved 100 percent for Maldivian-owned entities.
In addition, foreign participation in construction and real estate has been made subject to minimum capital floor requirements and mandatory local partnership quotas:
"The updated regulations ensure that commercial activities that can be adequately served by Maldivian entrepreneurs are protected, while providing clear, predictable frameworks for foreign capital in major infrastructure and industrial ventures," the Ministry of Economic Development stated.
The regulations stipulate that construction projects valued under USD 15 million and residential real estate developments valued under USD 100 million must be owned entirely by Maldivians. For commercial projects exceeding these capital thresholds, foreign entities are permitted to operate only through joint ventures where Maldivians hold at least a 25 percent equity stake.
Professional services and enforcement
Similar domestic partnership mandates have been extended to professional services, including commercial auditing, corporate accounting, and information technology systems integration, where foreign firms must partner with local service providers.
Existing foreign entities operating in newly restricted commercial categories will be granted a transitional adjustment period to transfer ownership equity to Maldivian partners or reorient operations. Economic authorities emphasized that joint compliance inspections will be conducted with municipal councils to eradicate illegal shadow fronting arrangements.