Doing Business In The Maldives, From Etiquette To Opportunities
As the islands generate over 90% of their revenue from imports and tourism, doing business in the Maldives is more lucrative than ever. Explore opportunities in the top industries across the archipelago, as well as the ins and outs of business etiquette in the Maldives.?
The Backstory - The Current Economic Landscape of the Maldives
Surrounded by endless blue ocean and a cluster of picturesque, low-lying coral atolls, the Maldives heavily relies on imports and tourism. With minimal revenue in agriculture and exports, the government is seeking to diversify its economy, currently driven predominantly by its tourism sector, which accounts for around 30% of GDP and 60% of foreign exchange earnings. In addition to an influx of over 1.7 million tourists in recent years, the country presents substantial opportunities for investors, particularly in eco-tourism, luxury resorts, and related services. This opens up both the need for an extensive transport network and imported goods, ranging from food and beverages to construction materials, creating a burgeoning market for importers.
The Essentials - Practicalities of Business
When considering business opportunities in the Maldives, familiarising yourself with local business conduct and bureaucratic requirements is essential.?
For example, consider the practicalities of operational and office hours in the Maldives. Typically, business hours follow the norms of most Islamic countries, running from 8:30 AM to 4:30 PM, Sunday through Thursday, with Fridays being a public holiday. It’s advisable to plan meetings during these hours, although flexibility may be required due to the laid-back culture.
Understanding the legal requirements of entering the local business landscape is another crucial factor to note before embarking on any venture. Although foreign investment is welcomed in the Maldives, as with any other nation, stringent compliance with specific legal frameworks is required.?The Maldives Foreign Investment Act allows foreign entities to own 100% of a business in certain sectors, however, obtaining the necessary licenses and permits is essential, and it is advisable to engage local legal counsel to navigate these processes efficiently.
Finalising venues and office spaces is another aspect of dealing with business in the Maldives. Malé, the capital, is the main hub for business activities, offering a range of hotels and conference centres suitable for meetings and events in North Malé. Further down in the South Malé Atoll, some Maldives all inclusive resorts and islands offer ideal venues and meeting spaces within the properties, including?Holiday Inn Resort Kandooma Maldives, equipped with modern facilities for corporate gatherings.
Etiquette & Cultural Sensitivity?
Above all, understanding local customs and etiquette is vital for building strong business relationships on the islands. The Maldives is a Muslim country, and while resort areas may be more relaxed, it’s important to dress modestly, particularly in Malé and other local islands. Business attire should generally be formal; men should wear suits, while women should opt for modest dresses or blouses with skirts that cover the knees.
Additionally, the Maldivian business culture tends to respect hierarchy. Decision-making is often centralised, with senior leaders wielding considerable influence. Building rapport with these leaders is crucial, so take the time to understand their backgrounds and establish a respectful relationship. Therefore, personal relationships are key to successful business dealings in the Maldives. Engaging in small talk before delving into business discussions is common practice. Demonstrating interest in Maldivian culture, such as learning a few phrases in Dhivehi, can go a long way in fostering goodwill.