MALDIVES LAW AND PRACTICE Contributed by: Shaaheen Hameed, Hassan Maaz Shareef, Aminath Amathulla, Nazahath Ahmed, Isha Ali Raoof, Aifa Shareef, Noorul Hudha Ahmed and Mohamed Azmee, Premier Chambers LLP
1. Legal System 1.1 Legal System and Judicial Order The legal system of the Maldives is a combina - tion of civil and common law traditions aligned with the principles of Islamic law. Under Section 10 of the Constitution of the Maldives, Islam is the state religion and all laws are based on it. This means no law which is inconsistent with the principles of Islam may be enacted. This hybrid system has enabled the Maldives to preserve its Islamic ethos while modernising its legal frame - work. While much of the legal framework is now covered by statutes, where there is a gap, it may be supplemented by Islamic law or common law, with precedence given to Islamic law. The judicial system of the Maldives is organised into three tiers. The Supreme Court of the Mal - dives is the highest court in the country and has original jurisdiction, inherent jurisdiction, appel - late jurisdiction and advisory jurisdiction. The Supreme Court’s decisions are final and binding on all other courts. Under the Supreme Court Regulation 2020, a Supreme Court decision may be reviewed in limited circumstances. These cir - cumstances are where an applicant is able to show there has been a blatant disregard for the law or there has been a gross injustice. The High Court of the Maldives is below the Supreme Court and has original jurisdiction and appellate jurisdiction. The High Court hears appeals from superior and lower courts and tri - bunals. The third tier of the judicial system consists of first instance superior and lower courts along with tribunals. These include the Civil Court, the Criminal Court, the Family Court, the Juvenile Court, the magistrate courts, the Employment Tribunal and the Tax Appeal Tribunal. All courts
apart from the magistrate courts have specific jurisdictions. The magistrate courts have juris - diction to hear civil, family and criminal matters. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments Approval of Foreign Investments Foreign investments in the Maldives are current - ly governed by the Foreign Investment Act (Law 11/2024) (the “FI Act”), which came into effect on 3 December 2024. It repealed and replaced the previous Law on Foreign Investments (Law 25/1979) which was enacted in 1979. The FI Act establishes a new legal framework for regulat - ing foreign direct investment in the Maldives, including provisions on eligible investment areas, approval procedures, investor rights and protections and conditions for the revocation of licences. The FI Act requires all foreign investments to be approved regardless of the nature or type of investment. A licence has to be obtained before any foreign investment can be established in the country. Criteria for Review All foreign investments are subject to the criteria of review and considerations set out in the FI Act. There is no specific review processes man - dated under the FI Act for specific investments. The approval of foreign investments under the FI Act is subject to an assessment of several factors, including, but not limited to: • the financial capacity of the investor; • the investor’s eligibility for residence and entry into the Maldives;
475 CHAMBERS.COM
Powered by FlippingBook