Maldives News Bulletin - Volume 119

The Minister of Foreign Affairs of the Republic of Maldives, Moosa Zameer had a meeting with the Minister of Foreign Affairs of the Kingdom of Saudi Arabia, His Highness Prince Faisal bin Farhan Al-Saud, in Riyadh on Monday, during the Minister’s ongoing Official Visit to Saudi Arabia.

During the meeting held at the Ministry of Foreign Affairs of Saudi Arabia, Minister Zameer presented a letter from His Excellency Dr. Mohamed Muizzu, President of the Maldives to His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia.

During the meeting, both Ministers reflected on the close ties of friendship and cooperation between the Maldives and Saudi Arabia, which are rooted in the common Islamic heritage, shared values and principles.

The discussions focused on strengthening the existing bilateral relations between the two countries, as well as opportunities for increased multilateral cooperation in areas of mutual interest. Both Ministers also discussed the holding of the first round of bilateral political consultations between the Maldives and Saudi Arabia, at a mutually convenient time.

Minister Zameer expressed gratitude for the Kingdom of Saudi Arabia’s long-standing support for the Maldives, and conveyed hopes for increased bilateral engagements following this visit.

Minister Zameer was accompanied to the meeting by Ambassador-atLarge Ahmed Naseer, Joint Secretary Badoora Saeed, Director General, Aishath Fareena and Chargé d’affaires at the Embassy of the Maldives in Saudi Arabia, Ahmed Fazeel.

^{SOURCE : Ministry of Foreign Affairs}

The Parliament has approved an amendment to the Tourism Act to extend the lease term for islands or land used at lower rates.

The amendment bill was introduced by Dhangethi Constituency Member of Parliament Abdulla Rasheed. It was approved with 76 votes in favour and no votes against.

Previously, the law required a payment of USD 200,000 for each additional year of lease and a lump sum of USD 10 million in extension fees. The new amendment stipulates that within six months of the enactment of the bill, individuals can opt for a reduced rate which is USD 100,000 per additional year and a lump sum of USD 5 million in extension fees, provided they make the payment in full.

The original rates of USD 200,000 per extended year and USD 10 million in extension fees will apply, after the six-month period.

The amendment aims to offer investors an opportunity to extend their lease on islands or resorts for tourism purposes. Under the existing Tourism Act, islands and land designated for tourist resorts can be leased for up to 50 years from the date of handover to the lessee.

^{SOURCE : PSM}

The Parliament has approved the amendment proposed to the Employment Act, authorizing relevant Ministries to review immigrant work permits every 18 months.

This amendment was proposed by North Kulhudhuffushi Constituency Member of Parliament Mohamed Dawood. The Parliament’s Committee on National Security reviewed the bill. It was passed with 65 MPs voting in favour and 10 members opposing the bill.

The current Act, stipulates the payment of USD129.70 as quota fees to the administrative office, designated by a relevant ministry. It additionally mandates the payment of USD22.7 monthly, as a work permit fee.

The new amendment stipulates that any new fees established following this review must not exceed 30 percent of the existing fees. Additionally, while the amendment provides the Ministries with the authority to adjust the fee amounts, it also outlines a special procedure that must be followed if the fees are to be reduced.

^{SOURCE : PSM}

The Maldives Monetary Authority (MMA) has announced the country’s national reserve is expected to see improvements this month, citing positive developments in the nation’s economic and financial situation.

In an interview with PSM News, MMA revealed that an agreement signed in 2019 between the Authority and the Ministry of Finance allowed the Central Bank to exchange dollars deposited in the Sovereign Development Fund (SDF) for Maldivian Rufiyaa, including those in the usable reserve.

However, this arrangement ended in December 2023. MMA now retains the dollars in the SDF without exchanging them, with the fund currently holding an available balance of USD 65 million.

As of the end of July, the Central Bank reported that the state’s usable reserve stood at USD 45 million, excluding the USD 65 million held in the SDF. MMA also noted that deposits into the SDF are expected to surpass forecasts due to recent measures taken by the government to increase contributions to the fund.

The Central Bank highlighted the anticipated exponential growth of the Maldives’ tourism industry, predicting that this will have a positive impact on the national reserve.

Additionally, the government is actively seeking financing from foreign entities to support the foreign exchange needs of the state and state-owned companies.

MMA further disclosed its ongoing efforts to enhance foreign currency liquidity through currency swap arrangements, which have been employed in recent years. One such swap line is expected to provide up to USD 400 million in financing. In 2023, USD 100 million from a similar arrangement was used to bolster the reserves.

Since the appointment of Governor Ahmed Munawar, the Central Bank has been working closely with the Ministry of Finance and other relevant authorities to improve the economy and financial situation. MMA expressed confidence that these collaborative efforts are yielding positive results and will help overcome the challenges facing the Maldivian financial system.

^{SOURCE : PSM}

The Parliament has approved a recommendation to dismiss the President and Vice President of the Tax Appeal Tribunal, forwarding the decision to President Dr Mohamed Muizzu.

The Judiciary Committee reviewed a letter submitted to Parliament outlining issues within the Tax Appeal Tribunal. After a thorough examination, the Committee presented its findings to Parliament. The proposal regarding the tribunal was brought forward by the committee, receiving 63 votes in favor and 10 against.

While presenting the report, Chairman of the Judiciary Committee and Manadhoo Constituency Member of Parliament Husni Mubarak said that the tribunal had allegedly engaged in numerous corrupt activities under the previous government. He noted that the Committee discovered instances where tasks that could have been completed at a lower cost were done at a higher expense.

As a result, he said the committee had passed to refer the case to the Anti-Corruption Commission (ACC) for further investigation.

Additionally, MP Husni said that the committee had recommended the removal of four members from the tribunal to President Dr. Muizzu. They include, Tribunal’s President Mohamed Munawar Ali, Vice President Hussain Zaidhan Jaleel, and two other members, Khadheeja Naeem and Ahmed Ashraf. He also highlighted that many cases had not been resolved within the designated timeframe of the Tribunal.

The Tax Appeal Tribunal was established under the Tax Administration Act. It is responsible for hearing tax-related cases and is composed of five members, including the president and vice president.

^{SOURCE : PSM}

Members of Parliament have emphasised that the sustainable provision of basic services relies on the establishment of urban centres. This was the core message delivered by MPs while deliberating on the Urban Development Bill, introduced by Vilinigili Constituency Member of Parliament Azim Abdul Azeez.

While presenting the bill, MP Azim highlighted the absence of a legal framework governing the development of areas. As such, he said that the proposed Urban Development Bill aims to enable the provision of basic services in a planned and sustainable way when developing urban areas. He also noted the negative effects of past developments that lacked proper planning. citing Male City as an example, which was developed without a long-term urban plan, MP Azim noted that this has resulted in the overcrowding of Male’ City we see today.

Additionally, MP Azim pointed out the challenge of providing sustainable basic services across all the islands in the Maldives. He noted that it was costly to establish all basic services on all islands. The MP noted that in some small islands, as there were no threshold populations to sustain service provision and low number of students, schools had to be closed. He also emphasised that the planned urban centres would greatly benefit the residents of the country.

Kaashidhoo Constitutency Member of Parliament Munthazim Ibrahim spoke on the importance of the Urban Development Bill for an island nation like the Maldives. He highlighted that over 54 islands in the country have populations of fewer than 500 individuals. He argued that providing basic services on every island would impose a significant financial burden on the government. He also said that by creating well-planned urban centres, the government could reduce expenditures while still delivering quality services to a larger population.

Moreover, West Maafannu Constituency Member of Parliament Mohamed Musthafa Ibrahim criticised the past development of Male’ City, noting that it lacked a proper urban development plan. He stressed the need for well-planned regional development in the future and criticised the previous government for allocating land without a plan. He also said that the new bill would put an end to such unplanned land allocations.

The bill received wide support from many Parliamentarians. However, Parliamentarians from the opposition Maldivian Democratic Party (MDP) had objected to the bill.

^{SOURCE : PSM}

The Maldives Customs Service has announced that regulations on import duty exemptions have been amended to include exemptions for items imported for use by the security services.

This amendment, made under the Export Import Act of the Maldives, is intended to enhance safety and security and will take effect upon its publication in the Government Gazette. Previously, duty exemptions for goods imported for security purposes were granted following a request from the Ministry of Homeland Security and Technology and the Ministry of Defense.

The recent amendment to the law formalises the process, making it easier to secure duty exemptions for such items in the future.

^{SOURCE : PSM}

President of the Maldives National Association of Construction Industry (MNACI) Mohamed Ali Janah has stated that the number of loans issued to construction industry have been increased by 6 percent.

Speaking at the inaugural ceremony of the Construction Industry Forum, Janah underscored the crucial role of the construction industry in national and economic development.

Highlighting the notable achievements of the industry during the first quarter of the year, Janah stated that the loans issued for construction industry purposes have increased by 6 percent. He expressed his optimism, stating these were key indicators of progress for the sector.

Furthermore, Janah emphasised the importance of investing in the sector. He called on experts of the industry and government to collaborate to progress and enhance the sector. The challenges facing the sector, he said, need to be addressed among stakeholders and solutions need to be found from such discussions.

Janah said that the biggest challenge within the industry is the lack of skilled labour, as well as recruiting technically gifted experts and labourers.

The Construction Industry Forum aims to serve as a platform in which the industry’s challenges can be discussed, while determining potential long-term solutions. The Forum saw talks being held on four significant sectors, with more than 80 participants. The Forum was attended by government officials as well as private individuals.

The construction sector is the second largest contributor to the nation’s economy and economic growth. Major large scale infrastructure projects have seen the sector become the second largest contributor to GDP.

The construction industry is among the top five industries contributing the most to the nation’s economic growth. The industry continues to expand as it takes on several important projects.

^{SOURCE : PSM}

Head of the Cyber Security Council of the United Arab Emirates (UAE) Dr. Mohammed Al-Kuwaiti and Commissioner of Police Ali Shujau have held discussion on potential collaboration in cyber security

The Ministry of Homeland Security and Technology stated that the discussions took place during a meeting with a high-level UAE delegation in the Maldives. The meeting focused on enhancing cyber security cooperation and expressed gratitude to the Emirati government for bolstering the operational capacity of the Maldives Police Service (MPS). The Maldives also extended thanks to Dr. Al-Kuwaiti for his support in advancing these initiatives.

Dr. Al-Kuwaiti is visiting the Maldives, where he has met with President Dr. Mohamed Muizzu and other officials. During these discussions, he emphasised the strong ties between the UAE and the Maldives and explored collaborative opportunities in cyber security. The meetings also addressed ongoing progress, challenges in the field, and the importance of working together to create a secure cyber environment.

^{SOURCE : PSM}

The world governing body for football Fédération Internationale de Football Association (FIFA) has appointed former Sports Minister Ahmed Zuhoor as Chairman of the Normalization Committee and tasked over the administration of Football Association of Maldives (FAM) to the Committee.

The five members appointed by FIFA and Asian Football Confederation (AFC) are:

• Chairman - Ahmed Zuhoor

• Member - Fareeha Shareef

• Member - Ahmed Muizzu

• Member - Ismail Simon

• Member - Ahmed Ali

The Committe Chair Zuhoor served as Sports Minister for two years. During this time, the Ministry tried to reform the FAM, with the thenMinister expressing his concerns over its administration to FIFA.

The Committee will work on reforming the administration of FAM, revising guidelines, and hold new elections all before July 31, 2025. A special focus will be placed on reviewing the financial aspects of FAM and how the funds had been used previously.

^{SOURCE : PSM}