| 1- a)
A Foreign government or a foreign national
or a body incorporated outside the Republic
of Maldives may invest in the Republic of
Maldives, in accordance with the terms of
this Law. The Government of the Republic
of Maldives or any part representing the
Government, or Maldivian
nationals or a body incorporated in the
Republic of Maldives may collaborate in
such investments.
b) A Foreign Investment may be made in the
Republic of Maldives in accordance with
section 3 hereof, in the Ministry of Tourism
if the investment is in tourism, and in
the Ministry of Trade and Industries in
all other investments After signing an agreement
and having the investment duly registered
in the Ministry of Trade and Industries.
2- The nature and the areas of any Foreign
Investment that could so be made in the
Republic of Maldives shall be decided by
the Ministry of Tourism should the investment
be tourism related and by the Ministry of
Trade and Industries in all other investments.
The said investments shall have a capital
acceptable to the Government of the Republic
of Maldives.
3- All foreign nationals investing in tourism
shall sign an agreement with the Ministry
of Tourism. Similarly those investing in
all other sectors shall sign an agreement
with the Ministry of Trade and Industries.
This agreement in respect of the investment
shall set out the terms and conditions and
the manner of implementation of the investment
scheme and programme.
4- Of those foreign parties referred to
in section 1. a) of this law, only a bank
or a Government recognised by the Government
of the Republic of Maldives, or a person
or body whose financial status is either
guaranteed by a bank or such institution
or is acceptable to the Government of the
Republic of Maldives, may invest in the
Republic of Maldives.
5- An investment made in the Republic of
Maldives will be permitted to carry on operations
and activities for the full 1 term of the
agreement if there is compliance with the
Law on Foreign Investments in the Republic
of Maldives. And such investments will be
duly facilitated by the Government of theRepublic
of Maldives.
6- The Government of the Republic of Maldives
may, without giving any notice or after
giving such notice that it deems necessary,
suspend aninvestment before the expiry of
the period under the agreement, either where
the Foreign Investor indulges in an activity
detrimental to the security ofthe country
or where such temporary closure is necessary
in the opinion of the Government of the
Republic of Maldives in the interests of
national security.
Any temporary closure referred to herein
would not lead to the Government of the
Republic of Maldives or any party representing
the Government, or Maldivian nationals incurring
any liabilities therefore or thereby nor
would it relieve the Foreign Investor of
this obligations under an agreement other
the agreement referred to in Section 3 of
this Law, subsisting at the closure referred
to in this Section.
7- If, after due investigations, it cannot
be concluded within sixty days of the temporary
closure of an investment referred to in
Section 6 of this Law, that the Foreign
Investor had, infect, indulged in an activity
detrimental to the security of the Republic
of Maldives or even contemplated such an
act, then the Government of the Republic
of Maldives will give fair compensation
to the foreign Investor and allow the Foreign
Investor to resume the investment.
8- If a Foreign Investor fails to comply
with the Laws of the Republic of Maldives
and if there be failure to comply with the
same even after a notice bv the Government
of the Rep. of Maldives.
9. Capital belonging to an investment that
is closed under Section 6 and 8 of this
law would be permitted to be taken out of
the country in a manner to be agreed on
by the parties.
10. If the investment operations in the
Republic of Maldives be such that local
raw materials could be used, such items
shall be obtained and in the process. Provided
however, where suitable materials for the
processes are not obtainable in sufficient
quantities locally, they may be obtained
from outside the Republic of Maldives.
11. Maldivian nationals shall be employed
in investments in the Republic of Maldives
except in those cases where employment of
non-nationals becomes necessary.
12. If the items produced by the investment
is a requirement of the Maldivian people,
a percentage of the production shall, if
necessary, be required to be marketed in
the Republic of Maldives in a manner to
be agreed to by both parties.
13. The profits of the investment in the
Republic of Maldives may be remitted out
of the country under the terms of the agreement
entered into under Section 3 of this Law.
14. The Government of the Republic of Maldives
may waive duty and tax investments carried
out in the country for a period, the Government,
at its discretion specifies. The tax referred
to in Law No. 15/79 (Law on Tourism in the
Maldives) does not come under the provision
of this Law.
15. In the event of disagreement on any
matter in regard to the investment made
under this Law and on failure to reach an
agreement by discussion between the two
parties concerned, the matter in dispute
shall be dealt with in accordance with the
agreement.
16. As from the date of operation, this
Law will apply to all Foreign Investments
to be made in the Republ ic of Maldives
and also to those already established in
the country.
17. In this Law:
a) "Foreign Investment" means
the goods, money and services brought into
the Republic of Maldives by Foreign Governments,
bodies or Nationals as are referred to in
Section 1 and 4 hereof, to undertake an
economic activity in the Republic of Maldives,
exclusive of those imported by them under
Law No. 4/79 relating to Business undertakings
of Foreign Nationals in the Republic of
Maldives.
b) "Capital" means money and property.
c) "Foreign Investor" includes
the shareholders, director~, managers and
all the employees of the investment.
d) "Investment in Tourism" means
the construction or the management of a
Tourist Resort or a Guest House as referred
to in the Note to Law No. 15/79.
e) The singular as used herein shall include
the plural and vice versa.
Note: This Law No. 25l79 (Law on Foreign
Investment in the Republic of Maldives)
was amended by the Citizens' Majlis I February
1989 and came into effect
on 9 February 1989.
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