SEZ investment threshold slashed to $100m
Yameen's resolution in 2018 set a minimum investment of $150 million (MVR 2.3 billion).
Top Stories
The minimum amount of investment in a Special Economic Zone (SEZ) has been reduced to $100 million (MVR 1.5 billion).
President Mohamed Muizzu on Sunday issued a decree amending the latest decree issued by then President Abdulla Yameen on January 31, 2018 to determine the amount of investment and businesses that can be invested in such a place under the SEZ Act.
According to the decree signed by President Muizzu:
-
A minimum investment of $100 million will be allowed in an SEZ
-
Yameen's resolution set a minimum investment of $150 million (MVR 2.3 billion)
Although the value of investment has been changed, there have been no major changes to the nature of investments that can be made in an SEZ, but food security has been added to list. A previous provision that allowed oil and gas exploration investments have been restricted to gas exploration only.
The categories of investments allowed in an SEZ are:
-
Export-oriented manufacturing
-
Transshipment port, international logistics, port, airport bulk breaking, bunkering and docking services
-
University, tertiary hospital, specialty hospital, world class research and development
-
World-class Information Communication Technology (ICT) Park, ICT related facilities
-
International financial services, international trade centres
-
Renewable energy
-
Food security
-
Gas exploration
In addition, a previous provision which said that joint investments with local partners will be priorities has been removed from President Muizzu's decree.
