Finance in Maldives
From Wikipedia, the free encyclopedia
Maldives has a policy of encouraging foreign financial investment. The law on foreign investments (Law 25/79) guarantees the security of investments and accords fair and equitable treatment under law for the investors. The country’s foreign investments policy allows 100% foreign owned enterprises and joint venture companies. The shares and profits thus earned can be freely transferred abroad without undue formalities.
Moreover, the country’s history of political stability resulting from the homogeneous nature of society, and the absence of ethnic and communal unrest that can disrupt the economy, makes Maldives an ideal choice for trade and investment. Foreign investment is encouraged in a number of key economic areas such as tourism, transport, fisheries, financial, infrastructure development and other services sectors.
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[edit] Foreign Investment Bureau
The Foreign Investments Service Bureau was established in 1987, under the ministry of trade and industries, to administer and facilitate foreign investments. It provides the institutional framework necessary for the effective management of foreign investments.
[edit] Banks in Maldives
Maldives Monetary Authority that was established in 1981, was the nation's first central bank. List of other banks:
- Bank of Maldives
- State Bank of India
- Habib Bank
- Bank Of Ceylon Limited
[edit] Insurance companies
- Allied Insurance Company [1]
- Insurance Corporation Of Sri Lanka
[edit] Public companies
The Maldives Transport and Contracting Company (MTCC), was incorporated in the Maldives in 1980. Its corporate structure is 60% government and 40% public subscription. The company’s authorized capital was 12.5 million rufiyaa of 250,000 shares, at 50 Rufiyaa per share. The Company opened its doors to business in January 1981. MTCC’s main areas of business are marine transportation, construction, machinery and spare parts, real estate and other contracting activities.
[edit] Import and Export
External trade has always been an important component of the Maldivian economy. Being a seafaring nation, the Maldives has for centuries, carried out overseas trade with other countries in the region. The ancient trade in cowry shells was a monopoly of the Maldives, where the money shells were cultivated for export.
Traditional exports consisted of copra, smoked and dried fish (Maldive fish), tortoise shells, and ambergris and coir rope. Woven garments, mats and embroidery items were also exported in the past. However, in time, fish became the dominant export commodity of the Maldives.
Today, export destinations include South East Asia, Europe and the United States. Domestic exports consist mainly of garments and fish or fish related products such as frozen and caned tuna, tropical aquarium fish. Dried and salted fish are still exported, in small quantities Re exports consist of jet fuel and duty free imports sold to tourists. Following the relaxing of export controls in 1990, there has been a significant growth in exports from the private sector. The government’s policy is aimed towards relaxing any remaining controls on exports. There is no export duty in the Maldives.
