The government has amended the Foreign Direct Investment Policy (FDI) to permit companies with 100% foreign ownership to manage and operate airports in the Maldives.
The amendments were published on the Economic Ministry’s website. Previously, the FDI policy annex 1, Code H3 specified that companies with 75% foreign ownership are permitted to conduct air transport services in the Maldives for a five-year period with a USD 5 million investment.
According to the changes announced today, 100% foreign-owned businesses can now invest and conduct air transportation services, excluding freight services, in the Maldives. These foreign firms can also provide ground services, air traffic control services, and airport operations, including terminal facility services.
The code still necessitates a USD 5 million initial investment over a five-year period. Once the government authorizes the investment, companies will be able to operate in the Maldives for 50 years.
The changes come amid rumors that the Hanimaadhoo Airport will be operated by a foreign company. The airport is being built with the assistance of the Exim Bank of India.