This aerial picture taken on Nov 15, 2023, shows people walking along a beach in Vilimale Island. [Photo/VCG]
A new Foreign Direct Investment law in the Maldives is expected to enhance investors' confidence and boost the South Asian nation's economy, according to Maldivian officials and experts.
It prioritizes transparency and investor protection, local media quoted Maldives' Minister of Economic Development and Trade Mohamed Saeed as saying.
Maldives President Mohamed Muizzu has ratified the FDI Act, which will bring new benefits to the country, said the ministry's news release on Sept 3. The new law will come into effect three months from the date of ratification and will apply to all foreign companies and individuals intending to undertake business on a long-term basis in the Maldives, according to the government.
It noted, "The primary objective of the new law is to promote FDI in the Maldives by creating a more transparent and secure environment for foreign investments."
The purpose of the new act is to establish guidelines on which sectors foreign investors can invest in within the Maldives, outline the regulations for granting investment permissions, and ensure protections for investors, said the release.
The previous law, enacted in 1979, had been in effect for 45 years and is no longer aligned with the present-day global investment environment and economic situations.
The news was encouraging to investors around the world, including in China, with observers saying the new law can provide impetus for infrastructure projects and related investments in the nation.
Enhancing confidence
"I am convinced that the passage of the new law will enhance the confidence of investors from all over the world to invest and do business in the Maldives, and promote the strong support of relevant financial institutions," Fang Qiuchen, chairman of the China International Contractors Association, told China Daily during the 9th Belt and Road Summit held in Hong Kong from Sept 11-12.
According to Fang, more member companies of the China International Contractors Association would like to invest in the Maldives and participate in the infrastructure investment and construction of the nation that has joined the Belt and Road Initiative.
Late last month, Maldives leader Muizzu extended his congratulations on the sixth anniversary of the China-Maldives Friendship Bridge.
The bridge, inaugurated on Aug 30, 2018, has become a symbol of the close relationship between the two nations, he said in a post on X.
Muizzu said the impressive engineering achievement not only connects the Maldivian islands but also represents the enduring partnership and mutual trust between China and the Maldives.
Wang Lixin, China's ambassador to the Maldives, noted in a social media post that over the past six years, the China-Maldives Friendship Bridge has greatly promoted the social and economic development of the Maldives and brought transformative changes in the lives of its people.
The project has vividly shown how the Belt and Road Initiative and friendly cooperation with China benefit the local people. The ambassador added that she looks forward to a more fruitful collaboration in the future.
China and the Maldives signed an agreement on the expansion and upgrading of the Velana International Airport, the gateway connecting the Maldives with the world, in 2014. In the past 10 years, the airport has renovated and expanded an apron area of approximately 250,000 square meters.
Xinhua contributed to this story.
