The Government of the United States of America and the Government of Maldives has signed an Investment Incentive Agreement on 15^th March 2010. The US Ambassador Patricia A. Butenis signed the agreement on behalf of the Overseas Private Investment Corporation, “OPIC”;  the United States Government agency that supports private sector investment in developing countries.

The signing ceremony was held in Maldives at the Ministry of Economic Development with the presence of the three leading private sector business associations, the Maldives Association of Tourism Industries (MATI), the Maldives National Chamber of Commerce and Industries (MNCII), and Maldivian Association for Construction Industries (MACI).

The Minister of Economic Development Hon. Mr. Mohamed Rasheed signed on behalf of Maldivian Government and Her Excellency Ms Patricia A. Butenis, Ambassador of United States for Sri Lanka and Maldives signed on behalf of the United States.

The Investment Agreement aims to achieve developmental objectives through the provision of investment guarantees for US corporations in Maldives through investment insurance, co-insurance, debt and equity. Long term financing for US investors in Maldives will be facilitated through an open fund of US 250 Million Dollar.

Addressing the media, Ambassador Patricia Butenis expressed her pleasure in signing the Agreement and welcomed the Maldives to the OPIC community. She expressed her confidence that the Agreement will strengthen and expand the growing commercial ties between the United States and the Maldives. She is hopeful that the Agreement will help generate employment, build new businesses and will help diversify the Maldivian economy. She further expressed her commitment to work with the Maldivian Government to achieve the objectives of the Agreement.

Minister Mohamed Rasheed spoke on the significance of the Agreement for attracting US investment and trade to the Maldives. He is hopeful of closer and stronger commercial ties between the respective private sectors of the two countries. He noted the strong interest of the Maldives private sector, especially the representation of the three prominent business associations. He thanked the support of the business community and the current Maldivian government’s efforts to actively promote and develop the Maldivian businesses.

Replying to the media, Mr. Mohamed Ali Janaah, President of the Maldives Association of Construction Industry, and Mr. Ahmed Nazeer, Financial Controller of Maldives Association of Tourism Industries also expressed their confidence of the Agreement on behalf of the Maldivian business community.

Prior to signing, the Ritz-Carlton Hotel Group, a subsidiary of Marriot International, welcomed the signing of the Agreement. According to Simon F. Cooper, president, The Ritz-Carlton Hotel Company, L.L.C, Marriott International soon hopes to become a beneficiary of the OPIC agreement for their Ritz Carlton project on Ekulhivaru in the Noonu Atoll “as [OPIC financing] clearly provides a valuable option not previously available. [This is] valuable particularly at a time when the financial markets are still so troubled, fragile and difficult to access”.

The signing of the US-Maldives Investment Agreement is an important step towards stronger friendship, partnership and commercial cooperation between the United States and Maldives to increase the confidence of US investors especially in the lucrative tourism sector. In October 2009, the The Ministry of Economic Development has signed Maldives-US Trade and Investment Framework Agreement (TIFA).

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