President Dr Mohamed Muizzu has issued a new Presidential Decree to govern the eligibility of projects for cross‑subsidy investment and stipulating the minimum investment thresholds that contractors must meet in order to participate in such arrangements.
The Decree comes into effect pursuant to the Maldives Tourism Act, which obliges the government to publish annually in the Government Gazette the minimum investment thresholds for contractors undertaking key projects under cross‑subsidy schemes. The provision aligns with the nation’s broader investment policy aimed at accelerating tourism development, bolstering infrastructure, enhancing climate resilience, safeguarding homeland and national security, and promoting social development across the archipelago.
An annex to the Decree enumerates the projects that fall under the government’s policy framework and are therefore eligible for cross‑subsidy arrangements, together with the applicable minimum investment requirements.
The list encompasses a broad spectrum of initiatives including land reclamation for tourism purposes and to meet growing public‑life needs, including the expansion of vital state services, prison development projects, tourism development and airport expansion schemes, social housing developments, causeway constructions linking islands, utility services in newly dredged areas, such as water, electricity, sewerage networks and waste management facilities.
Speaking to PSM News, Chief Government Spokesperson Mohamed Hussain Shareef clarified that the President’s Office made only minor tweaks to the resolution that was published last year.
Instead of detailing each project individually this time, the government has opted for a broader, more flexible description of the eligible initiatives, he said, adding that this approach allows the government to adapt the list to evolving development priorities while still providing clear investment thresholds.
The move is expected to attract greater private‑sector participation, ensure transparency in the allocation of cross‑subsidy resources, and accelerate the delivery of the Maldives’ ambitious development agenda.