The Ambassador apprised the Finance Minister about the Norwegian investments in Pakistan. He said that Norway is one of. Maldives. Executive Summary. The Republic of Maldives comprises 1,1. Indian Ocean. The Maldives attracts a million tourists annually, and tourism is the growth engine for the economy and accounts for about 7. GDP. In 2. 00. 8 Parliament ratified a new constitution that provided for the first multi- party presidential elections. In 2. 01. 2, the first democratically- elected President, Mohamed Nasheed, stepped down, and Vice President Mohamed Waheed became the head of state. In September 7, 2. Maldives held presidential elections, which international monitors commented as transparent, fair and credible. In a run- off election on November 1. Abdulla Yameen Abdul Gayoom was elected the new President. Economic growth is projected around 4% in 2. Maldives faces significant fiscal and balance of payment (BOP) problems. The Maldives Monetary Authority’s (Central Bank) recent projections estimate that the country’s current account deficit will widen to about $2. GDP. The International Monetary Fund (IMF) has been surprised by the Maldives economic resilience despite long standing economic problems. In December 2. 00. IMF approved a $9. After the first two disbursements, the IMF withheld subsequent disbursements due to concerns that the budget deficit must be further reduced. Maldives economic growth has been mainly powered by tourism. Many international resort operators own and operate resort islands in Maldives; tourism will likely remain the engine of the economy. The government of the Maldives is aggressively promoting building new island resorts. Maldives will remain a small market with limited investment and business opportunities for U. S. Although trade and investment have been liberalized, the Maldivian business community is small and close- knit, so new market entrants may find it difficult to make contacts. Businesses report that foreign exchange shortages are affecting business, and a vibrant black market for foreign exchange is reported. Maldives became a member of the International Labor Organization in 2. Conversion and Transfer Policies. Maldives maintained a fixed peg of 12.85 Maldivian Rufiyaa (MVR) to the dollar since 2001, but moved to a managed float on April 10, 2011. The exchange rate is now set at a 20% range. Ministry of Youth Affairs is one of the Key Ministry of the Federal Government. Youth is an imperative section of society, which plays a pivotal role in the economy for sustainable growth and overall progress of the country. National Internship Program is designed for the benefit of young unemployed postgraduates and graduates all over the country, who have completed sixteen years of education from recognized universities or. Education for people and planet: creating sustainable futures for all; Global education monitoring report, 2016: Summary (Hindi version). The law provides for the right of workers to form and join independent unions, but it does not protect against antiunion discrimination. The Freedom of Peaceful Assembly Act effectively prohibits strikes by workers in the resort sector, the country’s largest money earner. Openness To, and Restrictions Upon, Foreign Investment. Attitude Toward FDIMaldives began opening up to foreign investment in the late 1. Foreign investments in Maldives have primarily involved resort management, but also include telecommunications, accounting, banking, insurance, air transport, courier services, and some manufacturing. In April 2. 01. 4, the Government of Maldives held an investor forum in Singapore and invited foreign investors to invest in five large infrastructure development projects including an integrated atoll, expansion of the airport in capital Male, reclaimed city, new port, and oil and gas exploration. The Government is in the process of submitting a Special Economic Zones Bill to the Parliament to facilitate foreign investment projects of strategic significance. Laws/Regulations of FDIThe Ministry of Economic Development is tasked with promoting and regulating foreign investments in all sectors, except for the tourism sector. The Ministry of Tourism (www. Maldives Tourism Promotion Board (www. Maldives as a destination. Bangladesh belongs to the South Asian Association for Regional Cooperation (SAARC). It joined the other SAARC members — Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka — in agreeing in 2004 to create a South Asian. South Asian Association for Regional Cooperation Prepared By: Arslan Ahmed Atif Alvi. Just as a collage is a composite art form, a knowledge base is the fruit of the efforts of a conglomerate. It is a window which offers a view into the world outside as also inside. Constantly expanding, this. Rebuttals/Rejoinders Contact Information: D.G. The Ministry of Economic Development reviews all proposed investments prior to granting licenses. The ongoing political instability has led to increased uncertainty among foreign investors as both the former Waheed government and the current government cancelled or re- opened provisions of at least two foreign development agreements committed to by previous governments. In December 2. 01. Maldivian government took over operation of the Male’ International Airport from GMR, an Indian company, after the Maldivian government repudiated the 2. While a Singaporean Court allowed the takeover, subject to adequate compensation to GMR per the contract, many business contacts consider the government’s move tantamount to expropriation. The $1. 4 billion sought by GMR for the termination exceeds the annual government budget and would increase the national debt to MVR 3. Initially, the Government indicated it would not compensate GMR, and the matter entered an arbitration process. In April 2. 01. 4, the Yameen Government reversed itself and said it would compensate GMR appropriately, although it is not known how much will be paid or when. In addition, at least one resort developer has been told that the terms of its signed agreement will not be respected. Foreign investment in Maldives is governed by Law No. Government and investors. Business Profit Tax Act (No. A new Partnership Act was also introduced in 2. Foreign investments are currently approved for an initial period of one year, with the option to renew. Banking licenses are issued by the Maldives Monetary Authority, and governed under the Banking Act (No. Tourism Act (No. The Ministry of Economic Development offers . Foreign investments were earlier required to pay annual royalty fees to the Government at 3% of gross income or 1. However, with the Business Profit Tax becoming effective from July 1. Maldives currently does not have personal income taxes. In addition, a goods and services tax on the tourism sector, and a general services tax on all goods and services supplied in the Maldives came into effect in 2. International arbitration is available for dispute settlement. Foreign investments within the tourism sector – such as resorts – are registered with the Ministry of Tourism. Investment Approval Process. The Investment Registration Unit of the Ministry of Economic Development screens and reviews internally all foreign investment proposals. The process includes standard due diligence efforts such as a local police screening of all investors, determining the financial standing of the proposed shareholders through a bank reference, as well as performing a background check on the investors involved. The opinion of the related sector is also sought. Each case is reviewed based on its merits and other factors such as the number of existing investors in the area, and the employment and technology transfer potential demonstrated. A final decision is made by the Ministry of Economic Development. This has been a fairly transparent process to date. Privatization Program. A new Privatization Act was introduced in January 2. Government. A Privatization and Corporatization Board has been established under the Act, tasked with planning, implementing, administering and monitoring the Government’s privatization and corporatization efforts. In 2. 00. 9, the Government leased public primary school Ghiyaasuddin School to Indian Company Shri. Educare under a 1. Maldives Water and Sanitation Company (MWSC) to Japanese Company Hitachi Plant Technology in January, 2. IPO of telecommunications company Dhiraagu in October 2. Competition Law. Maldives does not have a competition law as yet, and hence there is currently no legal mechanism to review transactions for competition- related complaints. There are no laws or regulations in place that limit or prohibit foreign investment, participation, or control. The Ministry of Economic Development encourages investment projects that: (1) establish and enhance the delivery of basic services required to be provided by the State; (2) promote economic diversification and demonstrate potential to structurally reduce the country’s current dependence on the tourism sector; (3) expand the export base of the economy and support import substitution; (4) enhance the human capital development and employment opportunities for Maldivians on a significant scale; (5) promote innovative product development and new markets for the tourism sector; (6) bring enhanced improvements to the health and education sectors in terms of service delivery, quality, and accessibility; (7) expand and develop sports infrastructure and services in the Maldives; (8) promote the use of renewable energy in Maldives; and (9) promote incremental social and economic benefits from the available natural resources. Sectors With Investment Potential The following industries offer good potential for foreign investors: Tourism: Opportunities exist in the entire range of services, including development and management of resorts, tourist activities, and land and sea transportation. New resorts require a range of equipment and products. The political and economic situation in Maldives, as serious as it is, has little impact on the tourism sector, since tourists only transit briefly through the Male’ Airport and go directly to the resort islands. The resorts themselves are largely self- sufficient and source almost all of their food, fuel, and labor from outside Maldives. Most tourism bookings, in fact, do not come through Maldivian banks, but are handled at the point of sale in Europe, China, or elsewhere. Given the geographic distance between the atolls themselves as well, conflict in Male or an inhabited island may have little to no repercussions on a resort island. Financial, banking, accounting, and management consulting: Maldives' financial sector consists mainly of banks, one of which is partially state- owned, and four branches of foreign- owned banks, and a partly state- owned bank providing sharia- compliant banking services. The lack of adequate banking laws had deterred entry, although a new Banking Act was introduced in December 2. Financial services consulting and management services are also areas that offer potential. The Maldives Stock Exchange (MSE) (http: //www. Currently six companies are listed on the MSE, including one foreign company. Transportation and Shipping: The transport sector is dominated by maritime and air transportation, but additional transportation could be provided. There is potential to develop air and sea transport including inter- atoll transport services, bunkering, transshipment, and passenger cruises.
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