Local construction companies have been devastated since this administration took office: Shamheed
17 އޯގަސްޓު 2026 | ހޯމަ 12:29Member of Parliament Shamheed has raised concerns regarding the distribution of over $2 billion worth of ongoing construction projects in the Maldives, questioning how many of these contracts have actually been awarded to local companies. He further noted that Maldivian firms are being sidelined even from subcontracting opportunities within these major development initiatives.
Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency. | People's Majlis
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumalé constituency, has stated that local construction companies have faced financial ruin since President Dr. Mohamed Muizzu assumed office.
During Monday's Parliament sitting, MP Hassan Zareer of the Mathiveri constituency introduced a government-proposed amendment to the Income Tax Act. Contributing to the debate, MP Shamheed noted that even small-scale projects valued between four and five million Rufiyaa, managed by local councils, are currently being executed by foreign companies.
Shamheed stated that increasing the tax rate on foreign contractors from five percent to ten percent would not create additional opportunities for Maldivian companies. The member further suggested that it would be more prudent to increase this tax rate to 23 percent.
MP Shamheed raised questions regarding the number of projects awarded to local companies, noting that construction projects exceeding $2 billion are currently underway in the Maldives. He further stated that Maldivians are not even being granted subcontracts for these initiatives.
Expressing concern over the challenges faced by local contractors in obtaining labor quotas, Shamheed noted that foreign companies appear to face no such restrictions, securing visas and importing foreign workers as needed. Furthermore, Shamheed highlighted a disparity in taxation, stating that while excavators and other heavy machinery imported by foreign firms are exempt from customs duties, Maldivian companies are required to pay full duties on the same types of equipment.
There are currently construction projects worth three to four billion dollars underway in the Maldives. However, one must ask: what portion of this is actually reaching local contractors? How is it that foreign contractors are granted the freedom to import labor as they please, while Maldivians struggle even to secure basic labor quotas?Dr. Ahmed Shamheed
MP Shamheed stated that when foreign companies undertake projects, they must award subcontracts of at least 30 to 50 percent to local Maldivian firms.
MP Shamheed stated that the proposed amendment will not increase opportunities for Maldivian contractors. He further noted that if meaningful changes are to be achieved, more substantial reforms are required.
