Maldives to introduce investor residency programme for economic diversification

The Maldives is poised to join a growing list of nations offering investor residency programmes, with the cabinet scheduled to deliberate on the proposal during a meeting on Sunday. Such programs are already well-established in several countries, attracting significant foreign investments by granting expedited residency rights to individuals making substantial financial contributions.

President Dr. Mohamed Muizzu, in a video message ahead of the upcoming cabinet session, emphasised that the initiative aligns with the government’s broader strategy to accelerate economic diversification. He highlighted that this approach has been successful in developed countries, citing Singapore and Dubai in the United Arab Emirates (UAE) as examples.

“This is a unique yet crucial step for the development of the Maldives,” said President Muizzu. However, he did not provide specific details on how the program would be structured within the Maldives.

In addition to the investor residency proposal, the cabinet is set to discuss the merger of six state-owned enterprises (SOEs) as part of the government’s ongoing efforts to streamline operations and reduce financial burdens. The agenda for Sunday’s meeting includes:

• Integrating the Regional Airports Company Limited (RACL) as a subsidiary of the Maldives Airports Company Limited (MACL).
• Merging the Fahi Dhiriulhun Corporation (FDC) with the Housing Development Corporation (HDC).
• Combining the Maldives Fund Management Corporation with the Business Center Corporation (BCC).

These proposed mergers are a continuation of the government’s austerity measures, which aim to consolidate insolvent SOEs with larger, more profitable entities to improve the state’s cash flow. Last week, the cabinet decided to make Fenaka Corporation, a debt-laden state utility, a subsidiary of the State Trading Organisation (STO).

In addition to these structural changes, the Maldivian administration has introduced a series of cost-cutting and revenue-boosting measures. These include legal reforms to Aasandha (the national healthcare scheme), the introduction of targeted subsidies, and mandating that companies generating US dollar revenues pay taxes in US dollars.