Further to the Ministry’s previous announcements (Announcement No: (IUL)101-IM/PRIV/2025/2 published on 8^th  October 2025 and (IUL)101-IM/PRIV/2026/4 on 23^rd September 2026) on the implementation of the Foreign Investment Entry Requirements (FIER), the Ministry of Economic Development, Transport and Trade wishes to inform foreign investment businesses with foreign shareholding in the Wholesale and Retail, and Logistics (CSA/GSA/PSA) sectors that the transition period provided under the FIER will conclude on 8 October 2026.

Accordingly, with effect from 8 October 2026, businesses with foreign shareholding will no longer be permitted to carry out business activities in aforementioned sectors unless they have completed the requirements applicable to their business. Any business activity carried out in these sectors after 8 October 2026 without having fulfilled the applicable requirements may constitute a contravention of the Foreign Investment Act (Law No. 11/2024).

Companies that have engaged with the Ministry

The Ministry has received applications and requests from a number of businesses in the mentioned sectors, seeking to regularize their operations through localization, restructuring or other applicable compliance measures. These applications are currently under review.

Companies that have formally engaged with the Ministry and commenced the relevant compliance process will be required to complete the outstanding requirements within the timeframe provided by the Ministry in accordance with any direction issued by the Ministry. The Ministry will continue to liaise directly with these companies to facilitate the orderly completion of the applicable compliance process.

Companies that have not engaged with the Ministry

Companies in the relevant sectors that have not submitted a transition application or engaged with the Ministry by 8^th October 2026, will receive formal notice from the Ministry in accordance with the Foreign Investment Act.

Such companies will be required, within the period specified in the respective notice, to take the necessary steps, including ceasing activities that are not permitted under the applicable Foreign Investment Entry Requirements where required.

Failure to comply with the requirements or directions issued by the Ministry may constitute a contravention under section 23 of the Foreign Investment Act and may result in enforcement action in accordance section 24 and 25 of the Act.

Requirements for Localization and Transfer of Ownership

Companies seeking to remain in the relevant sectors through localization will be required to demonstrate that the proposed ownership structure complies with the Foreign Investment Entry Requirement, including that the proposed transfer of shares results in meaningful and substantive local ownership, and participation in the business.

Accordingly, in addition to the standard share transfer requirements, companies will be required to submit additional information and relevant supporting documentation. The Ministry may assess the substance of the proposed localization, including the nature and extent of the transfer of ownership, consideration and payment arrangements, source of funds and financing, beneficial ownership, effective control, any continuing rights or interests of the foreign transferor or a related party, and the role and participation of the incoming Maldivian shareholder(s).

The detailed requirements and procedures applicable to such share transfers will be issued separately by the Ministry.

The assessment is intended to ensure that the proposed localization gives effect to the policy objectives of the Foreign Investment Entry Requirements and represents a substantive transfer of ownership and participation in the business, rather than a nominal or formal change in shareholding.

Compliance with the Foreign Investment Framework

The Ministry encourages all affected companies that have not yet engaged with the Ministry to do so without delay.

The conclusion of the transition period on 8 October 2026 marks the commencement of the applicable compliance and enforcement process. Companies that remain non-compliant, whether or not they have previously engaged with the Ministry, may be subject to enforcement measures under the Foreign Investment Act, including action pursuant to Section 23 of Act No. 11/2024.

The Ministry remains committed to facilitating an orderly transition and providing relevant companies with clarity on the requirements and steps necessary to achieve compliance with the Foreign Investment Entry Requirements.

For further information or clarification regarding the applicable requirements and compliance process, relevant companies may contact the Ministry of Economic Development, Transport and Trade through the relevant Ministry channels.

Invest Maldives, Foreign Investment Unit: [email protected]

Contact: 3333181/3333182