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Foreign businesses will be barred from operating in two designated sectors from October 8, with the government moving to reserve certain activities for Maldivian companies.
Mariyam Adheela
Cargo loading at Velana International Airport -- Photo: VIA
Male’: The Ministry of Economic Development, Transport and Trade has announced that foreign businesses operating in certain sectors must cease those activities from October 8 under new foreign investment requirements.
The affected areas include wholesale and retail trade, as well as services provided by foreign cargo, general sales and passenger sales agents.
The ministry said the changes are part of reforms aimed at reserving selected business opportunities for Maldivian companies while allowing foreign investment in sectors where it remains permitted.
Foreign companies affected by the rules have been given transition arrangements to either exit the restricted activities or bring their operations into line with the new foreign investment requirements.
The ministry has also disclosed the names of eight companies that failed to complete the required transition arrangements.
The companies have been instructed to take the necessary steps under the new Foreign Investment Entry Requirements within the specified transition period.
The government previously announced that cargo sales, general sales and passenger sales agent services for airlines would be restricted to companies that are 100 percent Maldivian-owned. The Civil Aviation Authority currently requires eligible businesses conducting international air transport sales to meet the ownership and licensing requirements.
The new framework also reserves several other areas, including wholesale and retail trade and certain logistics services, for Maldivian businesses, while providing transition periods for existing foreign investors.
