Foreign firms have now been allowed to operate airports in the Maldives as parliament passed an amendment permitting 100 percent stakes for foreign companies in running airports. 

The move will bring foreign direct investment in the archipelago, helping it expand the much-needed airport infrastructures to sustain its potential growth in the tourism sector. The amended act was published on Sunday on the website of the country’s economic ministry, reported Sun news. 

Earlier, companies with foreign ownership shares of 75 percent are allowed to operate air transport services in the Maldives with a five-year operating period and an investment of USD 5 million. 

The amendments now state foreign companies with 100 percent stakes can invest and run airports and provide air transport services, excluding freight services. Such foreign companies can also provide ground services, air traffic control services as well as airport operations including terminal facility services in the Maldives. 

Investment proposals will still require a USD 5 million initial investment for five years. Companies will be allowed to operate for 50 years in the Maldives, once the government approves the investment. The new rules were enacted on Sunday.

The amendments come amidst speculation that the northern Hanimaadhoo Airport is to be awarded to a foreign company for operations. The airport is being developed with aid from the Exim Bank of India. 

FDI businesses operating in the Maldives are still required to register in the Maldives.