A bill on establishing special economic zones (SEZ) to attract foreign investment has been submitted to parliament on behalf of the government by Progressive Party of Maldives (PPM) MP Ahmed Nihan.
The SEZ bill becomes the first piece of legislation to be proposed by President Abdulla Yameen’s administration to the 18th People’s Majlis, the newly-elected PPM parliamentary group leader tweeted on Thursday (June 5).
Speaking to reporters prior to departing to China on Wednesday night (June 4) to attend the Kunming Trade Fair, Economic Minister Mohamed Saeed explained that special economic zones would be established in the north, south and other “strategic locations.”
The SEZ bill is intended to expand the economy and could “bring an end to the dependence on tourism,” he said.
In addition to ports and light industries, Saeed said financial services and bunkering facilities would be made available at the zones.
“So the result of this would be the introduction of different industries to the Maldivian economy in addition to tourism,” he said, adding that the new enterprises could be more lucrative and beneficial than tourism.
Referring to the impact on the Maldives from the 2004 tsunami and the spread of the SARS virus, Saeed stressed the importance of diversification, as the Maldivian economy was vulnerable to external shocks due to the extreme dependence on the tourism industry.
He noted that economic development and job creation was the key focus of President Yameen’s election campaign.
The government conducted “a wide research” in drafting the bill, Saeed continued, and studied the practices of countries such as Dubai, South Korea, Mauritius, Cyprus, China, and Singapore.
The bill would “completely ensure investor protection,” he asserted.
Business-friendly laws were essential for attracting investors for mega-projects planned by the government, Saeed noted, such as the ‘iHavan’ transhipment port project.
The minister also expressed confidence that parliament would pass the bill without delay.
Vice President Dr Mohamed Jameel Ahmed meanwhile observed that the ruling party had a clear majority in parliament with a team of young MPs committed to the government’s economic agenda.
President Yameen had declared in April that the SEZ bill would become “a landmark law” that would strengthen the country’s foreign investment regime.
“What we would like to confirm for the foreign investors who come to the Maldives is that foreign investors should feel that Maldives is your second home here,” Yameen had said at a function in Hulhumale’.
The special economic zones would be “likened to cities in Dubai or the Emirates” and “the [business] environment we have in Singapore.”
The new law would enable investors to have “freeholds” in the country and allow investors “to engage in really, really long gestative projects,” Yameen said.
“We are embarking on an era of growth,” he said.
Other economic bills in the government’s legislative agenda include bills on foreign investment, insurance, consumer protection, corporate social responsibility and small claims as well as amendments to the Maldives Monetary Authority Act and the Pensions Act.
10 thoughts on “Government submits bill on special economic zones”
The technical word is "EXCLUSIVE ECONOMIC ZONE"!
This is fantastic news. At last, foreigners can own land in Maldives on freehold basis. Great news for foreign investors AS LONG AS SOME smartass politician/lawyer/judge/nincompoop does not DECLARE THIS AS "UNCONSTITUTIONAL" or "void ab initio" and "null and void" and God knows what else! The problem with Maldives is not a lack of smart ideas - it is more a problem with PREDICTABILITY AND REASONABLENESS of State Action against Foreign Investors. There is a serious dearth of COMMITMENT to such measures and this throws the entire effort of investors into a swirl of unpredictability. I guess there is only one way of knowing the outcome - to wait and see how long such a policy will last. As a foreign investor, I would wait to see the reaction to this policy across board over at least a year before I sink in my dollar!
Legistlating erogenous zones spurr productivity if laws are the missig ingredient.
This is just PR and may be Minister Saeed could be spared for a while with the BIG news..
Either the whole country is a special zone or there is no special zone. Fact of the matter is Maldives is just too minute and miscule to create zones...
There's a HUGE difference between the business environment in Singapore and anything the Maldives has to offer.
The summary is: CORRUPTION!
And not a word from the 23rd december ithihaad whining about 'the sale of Maldives to foreigners'.
No big deal about the proposed ideas, its part of political culture, a gesture for immediate attention, however, most of the rhetoric don't work out.
A good example? Obama. Remember how he made us cry and believe that finally the American torture island Guantanamo would close down!!!!
Anything that is good for the country is acceptable, but sheer talk giving hope to the unprivileged citizens is a crime. Anyway, as its happening in Egypt, and Syria, the outcome from the parliament is already known.
Mr. president this is very good thing for Maldives.we Maldives was too late opening for the investors.anyway it is better late then never.
Maldivian were sleeping. all other countries opened for sez's and markets
i think it is better to go ask china to build ports. and naval ship yard. only they can keep promise and time.
we have seen IGM hospital taken more then 30 years to complete. we dont want see anything like this anymore.
Replicating Singapore or Dubai's success is not going to be easy, too little too late.
No, it is not Exclusive Economic Zone(EEZ). EEZ is zone beyond the country's territorial sea as defined by United Nations Convention on the Law of the Sea over which the country has special rights for marine resources of this zone.
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