A country that amends and implements laws within 24 hours is not a safe destination for investment; I have decided not to invest in Maldives henceforth: Khaleel

Mohamed Khaleel, CEO of Manta Air and former Tourism Advisor to President Dr. Mohamed Muizzu, has stated that the Maldives is no longer a safe destination for investment due to its practice of amending laws within 24 hours. Consequently, he announced his decision to refrain from further investments in the country.

In an interview with a foreign news outlet, Khaleel stated that concerns regarding the erosion of investor confidence in the Maldives are not new. He noted that this loss of trust stems from the sudden implementation of major decisions, the introduction of new policies, and abrupt regulatory changes.

Khaleel stated that the amendment requiring the conversion of 40 percent of dollar earnings was implemented and finalized within just one week. He noted that this is not how legislative changes are typically enacted in any other country.

Khaleel stated that President Muizzu’s decision to implement legal changes requiring the conversion of 40 percent of foreign currency earnings without consulting the tourism industry significantly undermines investor confidence. He further characterized these measures as a form of capital control.

Khaleel further stated that due to the current trajectory of government policy and the implementation of such significant legislative changes, the boards of the companies where he holds senior positions have decided never to invest in the Maldives again. He also noted that the Maldives has become a country where laws can be amended and enforced within a 24-hour period.

Khaleel stated that he advised President Muizzu to maintain the mandatory conversion of dollar earnings at the previous rate of 20 percent, rather than increasing it to 40 percent.

Moving forward, it will no longer be feasible to pay the wages and service charges of these employees in US dollars. The meeting held with the President was highly constructive. During the discussions, we explained in detail that the current regulation—which mandates the conversion of 40 percent of foreign currency earnings through the banks—effectively makes it impossible to acquire any land or property within the Maldives.

Mohamed Khaleel

Furthermore, Khaleel emphasized the necessity for the government to implement expenditure reduction measures.