Maldives is an island country settles at the Arabian Sea of the Indian Ocean in South Asia. The best, always on a boom business in Maldives is a tourism business because the place is quite lucrative to grab the attention of a large number of tourists and also lakhs of tourists visit Maldives in a year.
So, the major economic strength is powered by tourism. Other industries accommodate communication, transportation, accounting, and bank sectors. Foreign investment is remarkably welcomed and appreciated for development.
|Benefits of Doing Business in the Maldives||The Drawbacks of Doing Business in the Maldives|
|The Comfortable working hours||The Low transparent policy for private sectors.|
|English as a major business language.||High illegal activities|
|High freedom score of 56.5||Gender inequality|
Advantages of Doing Business in the Maldives
- Tourism Hotspot
Due to the mesmerizing islands and magnificent resorts, a large number of tourists are attracted to the Maldives. This includes world-famous celebrities and tycoons. Around 1.2 million tourists visit the Maldives every year. It brings more foreign currency and indirectly increases exports.
Tourism gives a boost to other industries like resorts, restaurants, photography, tourist-guides, etc. The Airport economy boosts due to strong tourist accessibility.
- Stable Economy
The economy graph of Maldives remains stable and constant which ensures investors of a stable beneficial outcome. Many traders invest their finances in resort development and tourist spots as they assure about elevated economical profits.
Moreover, because of the small country Island, the monetary crisis has a lesser chance of occurring. This provides a safer environment to start a business with lesser risk factors.
- Foreign Businesses are given more importance
100% of foreign-owned businesses are granted to develop and expand their sector in the Maldives. Most businesses are established in the Maldives by Asian countries for a better perspective of expanding business in a foreign country.
From the 1980s the government has also encouraged foreign traders and investors to subsidize their finances in the Maldives province. Foreign investors can also send a maximum of 97% of the profit to their native countries.
- Easy Visa access
Business persuaders and Investors can easily access the country with a 30 days free tourist visa and can plan their business model and strategies. However, for establishing business a work permitting license is required issued by the government of Maldives.
- Easy property and construction strategy
The Labor cost and raw material expense are limited, which makes it economically beneficial for Business owners to establish an estate for their company. The paperwork is also online which saves both time and energy. It takes a maximum of 40 days to complete the requirement of starting a legal business.
- High education and literacy rate
The Maldives has a high education rate of 99% which provides skilled freshers as well as a decent workforce.
Moreover, the business language used in the Maldives is English. Talented freshers with high mechanical skills in industries like telecommunications, banking sectors, and tourist guidance are functioning and serving as a great prospect for their businesses.
GDP growth results in 6.9% of annual growth. The total GDP marks 573 crores of USD which has a per capita GDP of 10K USD. This shows elevated levels of economic perspectives of business in the Maldives.
- Supportive Policies
The Pension Act provides 7% of economic benefits to the country citizens. Moreover, high health rates and medical facilities bring about more productivity and efficiency of employees. The World Bank also supports economic development in the Maldives.
Disadvantages of Doing Business in the Maldives
- Strict Religious Contemplations
Islamic and Muslim religion is widely spread which follows stringent rules and regulations. This also incorporates gender inequalities and many other orthodox beliefs which creates an unhealthy environment for developing a broad-minded working perspective among the workers.
The Government also majorly appreciates Islamic religion in the country which more or less creates an awful impact on the emotional performance of the business startups.
- Poor power of the Judiciary System
The Judiciary System fails to control the country in an effective manner. This leads to an increase in an unhealthy atmosphere for the development and implementation of business strategies. Partiality rates are higher and bring up harmful beliefs among the employees.
- Insufficient Technology access
The wave of technology has still not majorly surpassed the business systems in the Maldives. Technical skills are still a minus point among the workers in the Maldives. Moreover, communication departments suffer from a great impact.
- Insecure climatic conditions
The Maldives is an island with about 1900 small islands in the surrounding. 90% of Island land is submerged in water having a lesser availability of height of 1 meter. This leads to a high risk of natural catastrophes.
Also, due to the tourism pollution rate has increased which makes the natural resources precious and of the high cost. 80% of land in the Maldives is facing direct contact with the sea.
- The tax system for the corporate sector
Corporate sectors face high tax payments as per the government policies. This leads to unidirectional development in only the tourism sector which makes the country more dependable on foreign currency and relations.
This also leads to low export rates and country based production which makes the economy dependable on other countries.
- Criminal activities
Illegal activities like drug abuse and elevated consumption of alcohol have increased due to the tourism industry. This leads to an unhealthy lifestyle for residents of the country.
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.