The Maldives, a tropical country situated in the Indian Ocean, is known globally for its exquisite beaches, world-class resorts, and rich and diverse culture. However, what is less known about the Maldives is its unique and robust legal system, a blend of common law, Islamic law, and traditional Dhivehi customs.
The Legal Structure of Maldives
The Maldivian legal system is based upon a unique combination of the English common law and Shari’ah (Islamic law). The Maldives Constitution explicitly prescribes that judges need to consider Islamic Shari’a in matters where the Constitution and the law are silent. This dual system presents a sophisticated and distinct framework that governs laws in the Maldives.
The Constitution of Maldives
Maldives Constitution, ratified in 2008, is the cornerstone for the country’s law. The Constitution guarantees numerous rights, liberties, and freedoms to all citizens. It includes provisions for the protection of human rights in accordance with international law, and upholds robust democratic principles such as separation of powers, rule of law, and judicial independence.
Business Laws and Policies
Over the years, the Maldives has shown noteworthy dedication to improving the business environment and fostering private sector growth. The Maldivian government has instituted a variety of favorable business laws and policies to promote domestic and foreign investments.
Under the country’s business Law, foreign investors are allowed to own 100% of any investment and are not required to have a local partner. During the course of their investment, they are also able to freely repatriate all profits and dividends.
Foreign Investment Act
To attract overseas investors, the Maldives Government designed the Foreign Investment Act provide protection and benefits to foreign investors. The Act permits foreign companies to operate in the Maldives under the same legal framework as Maldivian companies. This has significantly helped in making the country’s business environment more competitive and attractive to international investors.
Commercial Law
Commercial Transactions are governed by the Contracts Act, Sale of Goods Act, and Companies Act. The Contracts Act, inspired by the English law, furnishes a variety of remedies for breach of contract, whereas the Sale of Goods Act regulates the sale of goods in the Maldives.
In conclusion, the Maldivian legal structure and business laws have played a significant role in making the Maldives one of the fastest-growing economies in South Asia. The blending of Islamic law and English common law, guarantees of civil liberties and human rights, and investor-friendly business policies, collectively paint quite an attractive portrait for foreign investors and tourists alike. The framework has set a strong precedent for how unique and diverse legal systems can function harmoniously and contribute to a country’s development.
Suggested related links about The Legal Framework of Maldives: An Insight into Its Laws and Business Environment:
Ministry of Law and Gender Maldives
Ministry of Economic Development Maldives
The President’s Office Maldives