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Photo caption: Economic Minister Mohamed Saeed speaking during a press conference at the President’s Office. (File photo)

Tourism remains the main pillar of the Maldivian economy, but there are wider opportunities to expand economic activity, Economic Minister Mohamed Saeed said on Thursday.

Speaking at a business webinar organised by the Embassy of Japan, Saeed said the government is focusing on economic diversification and strengthening long-term sustainability by encouraging investment in emerging sectors.

He said the new Foreign Investment Act, which came into effect on 3 December 2024, has established a clearer framework for foreign investors and is designed to make it easier for businesses to enter and expand in the Maldives.

“Tourism is the mainstay of the economy. However, there are much wider opportunities in Maldives,”

Saeed said, highlighting sectors including renewable energy, maritime services, fisheries, food production, the digital economy and manufacturing.

The Economic Ministry said reforms under the Foreign Investment Act were introduced after considering factors including national security, competition within the domestic market, the participation of Maldivian businesses and the need for foreign expertise in certain sectors.

The government has said increasing foreign investment is part of its broader plan to diversify

the economy, create new industries and reduce reliance on tourism alone.

The Maldives economy continues to face challenges, including high public debt and concerns over fiscal sustainability. These issues have affected investor confidence and contributed to lower international credit ratings in recent years.

However, in June, international rating agency Fitch Ratings upgraded the Maldives' credit rating from CC to CCC-, which the government described as a sign of improving investor confidence.

As the country moves forward, economic diversification, investment growth and financial stability remain key priorities for sustaining long-term development.