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Foreign tourism investments to register?

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“No foreign investor may carry out any tourism related activity in the Maldives except after signing a foreign investment agreement and registering that investment with the Ministry of Tourism.”

Sounds like a major policy shift?

It is neither a new policy initiative nor a recent change in law.

The law

The policy statement is captured eloquently in section 39 of the Maldives Tourism Act. The section has been part of the Tourism Act since the law was first enacted some 21 years ago. Despite the fact that the Tourism Act has undergone amendments at least nine times since its introduction on May 16, 1999, section 39 has survived unaltered, unchanged.

Section 39 of the Maldives Tourism Act says this:

No foreign investor may carry out any tourism related activity in the Maldives except after signing a foreign investment agreement as mentioned in the Foreign Investment Act and registering that investment with the Ministry of Tourism as a foreign investment as provided in the Foreign Investment Act.

As is evident from the language of the section, the position crystallised in the form of section 39 of the Tourism Act is closely related to and deeply rooted in the Maldives Foreign Investment Act – a piece of law that has been in existence for some 41 years already, again unaltered, unaffected.

Section 1 (b) of the Foreign Investment Act that was introduced on May 1, 1979 says that no foreign investment can be carried out in the Maldives except after registering that investment and signing an agreement with the Ministry of Tourism (if the investment is in tourism) and with Ministry of Trade Industries and Labour (if the investment is in any other industry). Ministry of Trade is now succeeded by the Ministry of Economic Development.

Further, section three of the Foreign Investment Act reiterates that every investor in the tourism industry shall sign an agreement with the Ministry of Tourism if that activity relates to tourism, and with the Ministry of Trade Industries and Labor if the business relates to any other industry.

The unpacking

Let’s unpack section 39 of the Tourism Act and understand its components.

Firstly, the section applies to all foreign investments in the Maldives tourism sector. This may mean that it goes beyond the acquisition or leasehold ownership of a resort property. It extends to all verticals of the industry which are open for foreign direct investment.

Secondly, permissibility is dependent on to two events: signing a foreign investment agreement; and registration of the investment as a foreign investment.

The execution of the foreign investment agreement and registration of the investment are both considered as “entry requirements” for a foreign investor. Once a foreign investor travels through these two processes and completes its entry in to the Maldives, it gets to operate at a level field with a local investor in the same space. All other regulatory requirements of the industry are applicable to local and foreign investors alike – for example – the signing of an island lease agreement for lease of a resort property.

This striking legal requirement flows from the Foreign Investment Act which asks tourism sector foreign investors to register their investments with the Ministry of Tourism and investors in the non-tourism sectors to register their investments with Ministry of Economic Development; and irrespective of their chosen industry, to sign foreign investment agreements with the respective ministries.

The breach

Section 39 embodies a classic case of a piece of law that is “more honoured in breach than in the observance.”

While over time foreign investment approvals and signing foreign investment agreements have become synonymous with the Ministry of Economic Development, the requirement of law is in reality equally applicable to foreign investors in tourism and non-tourism sectors alike – as the legal requirement emanates from the same source – the country’s foreign investment law.

However, to our knowledge, there has never been an occasion where this legal requirement has ever been complied with so far as it relates to the tourism industry.

There is nothing in the body of legal rules, guidelines, or administrative bureaucracy of the Ministry of Tourism that dictates a foreign investor to complete a separate process of signing a foreign investment agreement or complete a registration process for its investment with reference to section 39 of the Tourism Act or section three of the Foreign Investment Act.

Whenever this legal requirement was flagged in legal due diligence investigations in the past, the prevailing view of responsible officials had consistently been that the requirements of section 39 are duly met with the signing of the Island Lease Agreement (in place of a separate foreign investment agreement) and grant of an operating license (in place of the registration of a resort investment). As much as they carve out these two requirements, the remaining regulatory requirements on registration and licensing are religiously followed – and applied to all investors alike – local or foreign – in all verticals of the industry.

The shift

However, this position may shift soon.

Ministry of Economic Development (the body responsible among other things for the registration of entities investing or operating in tourism industry) has launched a new FDI policy on February 11, 2020.

Since the inception of this FDI policy, the Ministry of Economic Development is insisting on following the foreign investment law requirements even in case of tourism sector investments – so long as they remain law.

The relief for existing investors is that the policy will be enforced only in respect of future requests – existing investments will not be disturbed.

The conclusion

Since this legal requirement rooted in an archaic piece of law (which has only been followed in its breach) has now been revived with the introduction of the FDI policy, there is bound to be discussion and disagreement. It is likely that the ensuing discussions may stimulate relevant policy makers or interested legislators to make a decision – either to keep the requirement as it is or expunge it from the statute books of the country.

Note: This article has been reproduced with permission from its author: Nasheed & Co., a commercial law firm in the Maldives. The original article can be viewed here.

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Barcelo Nasandhura Malé to open in Q1 2025

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Barcelo Nasandhura Malé, the Maldives’ newest luxury destination, is set to open its doors in Q1 2025.

Located on the site of the former Nasandhura Palace Hotel, the property will become the largest hotel in the capital, Malé. With 136 elegantly designed rooms, including 95 with stunning ocean views, and 116 luxurious serviced apartments, Barcelo Nasandhura Malé promises a unique blend of sophistication, comfort, and convenience in the heart of this vibrant city.

Operated by the renowned Spanish hotel chain Barcelo Group, the hotel represents a significant expansion of the brand’s presence in the Maldives and beyond. Barcelo Group, known for its exceptional resorts, recently opened Barcelo Whale Lagoon Maldives in South Ari Atoll in August 2024, further solidifying its growing portfolio in the region. In addition to its Maldivian properties, Barcelo Group manages a range of high-profile hotels across the UAE, Thailand, and several European countries.

Barcelo Nasandhura Malé will feature an array of premium facilities, including four upscale dining outlets, a rooftop shisha bar, an oceanfront pool, a state-of-the-art gym, and a luxurious spa. The hotel will also boast 1,034 square meters of versatile MICE (Meetings, Incentives, Conferences, and Exhibitions) space, making it an ideal venue for corporate events and gatherings.

While some serviced apartments were initially intended for residential use, they will now be available for daily rental, offering guests enhanced flexibility and a wider range of accommodation options. Originally scheduled to open on December 1, 2024, the opening has been slightly delayed due to minor construction work. However, the team remains committed to ensuring Barcelo Nasandhura Malé is ready to welcome its first guests in Q1 2025.

Barcelo Hotel Group, awarded World’s Leading Hotel Management Company 2023 by the World Travel Awards, is the second-largest hotel chain in Spain and ranks among the 30 largest globally in terms of the number of rooms. Founded in 1931, this family-run organisation operates 280 four- and five-star city and holiday hotels, offering more than 62,000 rooms across 25 countries. The group markets its hotels under four distinct brands, each focused on providing diverse and memorable travel experiences.

Renowned for its commitment to excellence and sustainability, Barcelo Hotel Group delivers exceptional stays, seamlessly blending luxury, comfort, and environmental responsibility.

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Denise Hoefer brings world-class Padel to The Nautilus Maldives

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As part of its ‘Masters for Masters’ series, The Nautilus Maldives will host Denise Hoefer, Germany’s No. 1 padel player and one of the world’s top 50 most influential figures in the padel industry, for an exclusive Padel Masterclass from March 22 to 25, 2025. This exceptional event invites guests to enhance their padel skills under the expert guidance of a global champion, all set against the stunning backdrop of the Maldives’ Indian Ocean.

Padel, recognised as the world’s fastest-growing sport, has captured the hearts of 30 million enthusiasts globally, according to the International Padel Federation. This March, The Nautilus will provide a unique opportunity for guests to immerse themselves in this thrilling game during a four-day Padel Masterclass led by Denise Hoefer, Germany’s top-ranked female padel player and captain of the German national team. Participants will refine their techniques on The Nautilus’s state-of-the-art padel court, while experiencing the island’s signature blend of world-class coaching and timeless, unscripted hospitality.

The Padel Masterclass will feature a tailored mix of group and private sessions, catering to players of all levels. Younger participants will have the chance to join the Young Wonderers program, offering specially designed classes that introduce the sport in a fun and engaging way. After an energising day on the court, guests can unwind at Solasta Spa, where exclusive treatments by Maison Caulières—such as Spinal Connection Deep Tissue Healing, Volcanic Stone Therapy, and Warm Poultices—promise ultimate relaxation and rejuvenation. These tranquil spa experiences provide a perfect complement to the day’s dynamic activities, leaving participants refreshed and revitalised.

With just 26 ultra-luxury houses and residences, The Nautilus offers an intimate sanctuary within the Baa Atoll, a UNESCO Biosphere Reserve. Surrounded by powder-soft white sands, vibrant coral reefs, and crystal-clear waters, this private island retreat redefines bespoke hospitality. Every element is meticulously crafted to inspire, offering guests an unparalleled ultra-luxury experience focused on relaxation, renewal, and discovery. Whether honing padel skills or embracing the serenity of island life, The Nautilus stands as the ultimate destination for discerning travellers.

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BBM, Lifebuoy empowers hygiene practices among Maldivian children

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BBM, in collaboration with Lifebuoy, marked Global Handwashing Day 2024 with engaging activities aimed at instilling the habit of proper hand hygiene among Maldivian school children. Held on November 17th, the event continued the successful “H for Handwashing” campaign, blending education with creativity and fun.

The initiative featured info sessions, exciting games, and creative contests designed to teach children the importance of handwashing while giving them a hands-on understanding of the correct techniques. Activities ranged from reimagined board games like “Germs & Ladders” and “Handwashing Ludo” to interactive sessions that reinforced hygiene habits in an enjoyable way.

This campaign underscores BBM’s commitment to fostering healthier practices among the younger generation, contributing to a healthier and more hygienic Maldives. COO of BBM, A.V.S. Subrahmanyam, emphasised, “At BBM, we believe that empowering the next generation with the knowledge and tools for better hygiene practices is vital for building a resilient and healthy community. We are proud to continue our efforts in collaboration with partners like Lifebuoy.”

Adding to this, Muksith Hussain, Head of Retail Sales at BBM, shared, “Reaching children through such innovative initiatives helps us lay the foundation for a healthier tomorrow. We are thrilled to see the enthusiasm and participation of these young minds in learning the importance of hygiene.”

The event also saw valuable support from the Maldivian Red Crescent (MRC), whose contributions enriched the experience for the children. BBM expressed gratitude for MRC’s involvement, as their efforts played a key role in making the event impactful and memorable.

Through campaigns like this, BBM aims to nurture a lifelong habit of handwashing, creating a brighter and healthier future for the Maldives.

Let’s keep the spirit alive—join the Handwashing Revolution with BBM and Lifebuoy!

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