A Slice of Heaven

For the million tourists that flock annually to the Indian Ocean archipelago of the Maldives, the holiday “paradise” of white sand beaches and luminous cyan water quickly embraces them. Speedboats or seaplanes ferry them to high-end hotels on otherwise uninhabited coral islands, by-passing the rest of the country’s far-flung islands where tourism and fishing are the primary industries.

Ever since the opening of the country’s first tourist resort in 1972, the tourism industry has witnessed the introduction of several businesses to increase the income from resorts, hotels and safari boats long before the inception of guesthouses. Although small in size, the strategic significance in the region remains unquestionable. For forty-six years, every government that came to power has continued capitalizing the advantage to allow the nation to access previously untapped, but financially boundless possibilities.

With 140 tourist resorts currently under development along with the 144 resorts that are already in operation, and Velana International Airport’s transformation into a brand new airport and the establishment of the Code F runway – the Maldives is underpinned by its trade environment, increasing dynamic private sector and robust growth in visitor arrivals. The newly officiated administration is looking forward to deregulating trade and industry, and creating an environment conducive for foreign investors.

Through legislative changes, the Government of Maldives has made it a priority to create an increasingly favorable investment environment for foreign investors. Under the Special Economic Zone Act 2014, exemptions for business profit tax and import duties, amongst other attractive incentives, are offered to qualified foreign investors and developers operating in an extensive list of industries, including hotel and tourism, commercial real estate, manufacturing, logistics, transportation, port development and communication service, education, health, housing, sports, financial services, development and operation of airports, human resource development, information technology, skill development, etc.

With the strength of solid local professional services, and lending support offered by international financial institutions and commercial banks, the Maldives has continued to develop at a steady pace with an average growth rate of 7% during the last two decades. The economy has remained resilient amidst the shocks the world has seen during the period. Pro-market policies embedded within the government’s economic vision contribute to a strong, liberal and transparent trading and commercial environment. In its drive to build a strong and stable economy the Government has implemented and optimized several policies to attract inward investments, and to further reform and simplify the foreign investment administrative system to remain an appealing destination for foreign investments in the region.

The Maldives government welcomes investors to all sectors of the economy, along with the progressive changes to investment climate, and firmly believes that the timing has never been better to invest in the Maldives.