Economic Overview & Business Opportunities
Maldives located in the continent of Asia with 298 square kilometres of land, making it the 214th largest nation in terms of land area. Home to a population of 374,535, which is equivalent to 0.01% of the total world population, Maldives became an independent state in 1965, after gaining its sovereignty from The United Kingdom.
As an island that depends upon the ocean for their sustenance, Maldives was famous for dried fish and other seafood resources in ancient times. As of now, the Maldives is far better known as a beach getaway than a fishing notion. The Maldivian economy is based on tourism and fishing. Maldives’s tourism industry generates almost 30% of the Maldives’ per capita GDP while fishing, including export of fish and other marine products, accounts for 10%. Other Maldivian industries include shipping, agriculture and manufacturing.
The Maldives had demonstrated a steadfast growth over the years. The country welcomes foreign investment and pursues an open policy for foreign investments. The law on foreign investments (Law 25/79) guarantees the security of investments. All foreign investments in Maldives must obtain approval from the Ministry of Economic Development, except for tourism sector investments, which have to be approved by the Ministry of Tourism, Arts, and Culture.
Foreign investments in Maldives have primarily involved resort management, but also include telecommunications, accounting, banking, insurance, air transport, courier services, and some manufacturing. Foreign investors, irrespective of their size, are encouraged to invest and do business in the Maldives. Many top players and international brand names have established their investments in the country. To name a few, international hotel chains such as Hilton, Four Seasons, One & Only, Club Med and numerous other regional brands have ventured into Maldives’s tourism industry.
Investment incentives in Maldives at a glance:
- Right to 100% foreign ownership
- Provision for overseas arbitration of disputes
- No foreign exchange restrictions
- No restrictions on the repatriations of earnings or profits
The Maldives continues to attract foreign investment with its good investment climate. With rights to 100% foreign ownership and no restrictions on foreign exchange repatriation, foreign investors have benefited tremendously over the years. As such, if you are thinking of expanding your business profile in South Asia, the Maldives is definitely one of the hotspots you would not want to miss.
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