Minimum Investment Thresholds for SEZs Revised
The Presidential Decree on Determining the Permitted Economic Activities and the Minimum Investment Threshold for Special Economic Zones1 (the “Decree”) was gazetted on 17 December 2023 revising the minimum investment threshold for special economic zones (SEZ) in Maldives.
Minimum Investment Threshold
The SEZ Act2 requires the President to publish the permitted economic activities and the minimum investment thresholds for SEZs on an annual basis.
The current Decree sets the minimum investment threshold at USD 100 Million, whereas, the amount had earlier been set at USD 150 Million.
Economic Activities Permitted in SEZs
The following economic activities are permitted in SEZs:
- Manufacturing activities focused on exports
- Transhipment ports, international logistics, ports, airport, bulk breaking, bunkering, docking services
- University, tertiary hospitals, speciality hospitals, international standard research and development facilities
- International standard ICT parks and related facilities
- International financial services, international trade centres
- Renewable energy sector activities
- Activities introducing novel technologies to Maldives
- Food security sector activities
- Gas exploration activities
The Decree also provides that in evaluating proposals (except for financial sector proposals), the investment amount would be deemed to be the minimum fixed investment amount proposed for the initial establishment of the investment.
For financial sector proposals, the investment amount would include the capital investment committed by the investor in commencing the operations in Maldives in addition to the minimum fixed investment amount to be expended for the initial establishment of the investment.
