(MENAFN- IANS) Colombo, Sep 4 (IANS) Maldives President Mohamed Muizzu has approved the Foreign Direct investment (FDI) Act, which is expected to bring new advantages to the island nation by aligning the country's investment framework with the current global climate, state media said.
The previous Act had been in effect for 45 years and no longer matched the present-day global investment environment and economic situations, PSM News reported on Tuesday.
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, PSM News said.
Quoting Minister of Economic Development and Trade Mohamed Saeed, PSM News noted that the new law is designed to enhance investors' confidence in the Maldives and facilitate access to financing from banks and financial institutions.
Saeed added that President Muizzu is committed to implementing significant economic reforms aimed at expanding business opportunities, promoting a sustainable business environment, boosting trade, and facilitating business in the Maldives, Xinhua news agency reported.
The latest revisions to the Foreign Investment Act will expand the role of foreign investments to develop the Maldivian economy, he said.
In a press briefing held at the President's Office regarding the legislature, Saeed said the government aims to make Maldives a conducive trade environment.
The Foreign Investment Act was enacted in 1979.
Saeed said the new amendments to the draconian law brings modern reforms which will accelerate economic development.
"To expand trade, make Maldives a convenient place for trade, and to develop real estate and other such economic sectors. I believe this law to be boost for Maldivian businesses and foreign businesses that invest in the Maldives," he added.
Saeed said the new law prioritises protection of foreign investors.
But he provided assurance that the interests of local businesses will be protected.
Speaking to reporters, Attorney General Ahmed Usham said the government's biggest goal is to make Maldives an 'investor friendly' country.
Usham added that the government is working on major legal reforms to make it happen.
"We have initiated efforts to make major legal reforms to make Maldives an investor friendly country. Such laws take a lot of time," he said.
According to the government, the amendments to the Foreign Investment Act seeks to improve matters related to foreign investors, bring modern reforms, and introduce a framework to protect the interests of foreign investors.
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