Minister Zameer Confirms Investment Reforms Aimed at Protecting Economy From Foreign Currency Drain

The government has introduced sweeping reforms to foreign investment regulations, targeting the real estate sector in a bid to stem capital flight and reinforce the role of domestic businesses in the national economy, Minister of Finance and Planning Moosa Zameer said. The measures, announced by the Finance Ministry, reflect a strategic shift towards economic self-reliance and institutional support for local enterprise.

Minister Zameer outlined the new policy direction at a ceremony marking the allocation of development projects to private Maldivian firms. He said the government had initiated a concerted effort to reduce the outflow of capital from the country, with a particular focus on the real estate sector.

Concerns have mounted over the use of the Maldivian financial system to facilitate the transfer of substantial funds abroad. Minister Zameer identified the real estate industry as a primary channel for this practice, noting that proceeds from the sale of foreign-owned real estate assets, transacted through domestic banks, are being converted from Maldivian Rufiyaa (MVR) into US Dollars (USD) and subsequently removed from the country’s financial infrastructure.

To address these vulnerabilities, the Finance Ministry has enacted targeted policy adjustments to favour domestic firms. “To mitigate this situation, the Finance Ministry has now directed state-owned enterprises to prioritise contractors, suppliers, and businesses affiliated with the real estate industry,” Zameer stated. “Concurrently, the National Tender Board and other responsible authorities have already assigned many hundreds of contracts to local Maldivian private businesses.”

The government has also revised its Foreign Investment Requirements, introducing new sectoral exclusions for foreign investors. For the first time, real estate projects valued below USD 100 million are reserved exclusively for local entities. This restriction forms part of a broader effort to shield sectors with high potential for domestic advancement from foreign dominance, while expanding investment opportunities in areas where local businesses require greater institutional support.

These reforms are designed not only to retain currency within the national economy but to strengthen the long-term viability of tax-paying Maldivian companies. Minister Zameer noted that the government aimed to uplift tax-paying local companies and enable them to achieve new heights, adding that the measures reflected the administration’s consistent emphasis on prioritising the advancement of local businesses.