The Maldives is an island nation consisting of a group of atolls stretching south of India's Lakshadweep islands in the Indian Ocean. The twenty-six atolls of Maldives encompass a territory featuring 1,192 islets, of which two hundred and fifty islands are inhabited. The stunning archipelago has long been a haven for diving enthusiasts and sun worshippers alike and with democratic reform and political stability bedding in over the past few months with the country's first democratic transfer of power, it is increasingly been seen as a option for overseas property investors.

The Maldives still has issues to contend with however, rising sea levels being key among them. Earlier this year the president of the Maldives, which is the lowest lying country in the world, called on delegates gathered in Bali to discuss establishing a mandate for negotiations on a new global climate treaty to work towards a solution which will halt rising sea levels that are threatening to swallowed the archipelago nation. Other initiatives being considered is the purchasing of land in India and Sri Lanka which the nation plans to relocate to should their current island homes fall below sea level.

Property Market Overview

The Maldives' largest industry is tourism. Tourism accounts for 28 per cent of GDP and more than 60 per cent of the Maldives' foreign exchange receipts. Fishing is the second leading sector with agriculture and manufacturing playing a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labour. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, account for about 7 per cent of GDP.

The Maldivian government began an economic reform program in 1989, initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalised regulations to allow more foreign investment. Real GDP growth averaged over 7.5 per cent per year for more than a decade.

The Maldives is one of the most attractive investment places among the south-east Asian countries and although still considered to be developing, it offers very attractive opportunities. Overseas investors have been taking note and the number of foreigners putting money into the Maldives has been rapidly increasing over the past few years. Services provided through such investments include resort management, sea and air transportation, accounting and management and manufacturing.

Foreign investors are not allowed to own land under normal circumstances, but are granted lease rights ranging up to 25 years, which can be later extended to 35 years for investments over $10 million.

Essential information

Location
The Maldives are an archipelago in the Indian Ocean made up of 1,190 coral islands grouped into 26 coral atolls. They lie south-southwest of India and are considered part of Southern Asia. 200 of its islands are inhabited islands while 80 feature tourist resorts.

Area
Total: 300 sq km
Land: 300 sq km
Water: 0 sq km

Population
385,925 (July 2008 est.)

Language
Maldivian Dhivehi, which is a dialect of Sinhala with a script derived from Arabic, is the most widely spoken language on the island. However, English spoken by most government officials and people working in the tourist industry.

Religion
The vast majority of Maldives natives are Sunni Muslim.

Currency/Money
The currency of The Maldives is the Rufiyaa, currency code MVR. At present, 1.00 USD = 12.8000 MVR.

Climate
The Maldives are tropical, with plenty of sunshine and temperatures around 30?C throughout the year. However, rainfall increases considerably during the April-October southwest monsoon, particularly from June to August.

International dialling code
+960

Capital
Male

Electricity
230 volts AC (50 Hz)

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History

Studies of Maldivian oral, linguistic and cultural traditions and customs confirm that the first settlers were Dravidian people from the nearest coasts, most probably fishermen from the southwest coasts of the modern Indian Subcontinent and the western shores of modern Sri Lanka. Buddhism came to the Maldives at the time of Emperor Ashoka's expansion and became the dominant religion of the people of the Maldives until the 12th century when the island's inhabitants converted to Islam. Although governed as an independent Islamic sultanate from 1153 to 1968, the Maldives was first a Dutch and later British protectorate from 1887 until 1965 when it gained independence. It became a republic three years later.

Since 1978 the political scene has been dominated by president Maumoon Abdul Gayoom who is currently in his sixth term in office. Following riots in the capital Male in August 2004, the president and his government pledged to embark upon democratic reform. Although progress was initially slow, political parties were legalised in 2005 and the first-ever presidential elections under a multi-candidate, multi-party system are expected took place in October 2008. The election saw Mohamed "Anni" Nasheed, a former political prisoner, come to power.

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Government

The Maldives is a presidential republic with a president as head of government. The President is nominated to a five-year term by secret ballot of the parliament, a nomination which is confirmed by national referendum in which non-Muslims are precluded from voting.

The country introduced political parties for the first time in July 2005, six months after the last elections for the parliament. Thirty-six members of the parliament joined the Dhivehi Raiyyathunge Party (the Maldivian People's Party) and elected sitting leader Maumoon Abdul Gayoom to the presidency. Twelve members of parliament formed the opposition as members of the Maldivian Democratic Party, and two members remained independent. Former president Gayoom was ousted in October 2008 by Mohamed "Anni" Nasheed, a former political prisoner, in the country's first presidential election.

Economy

The Maldives' largest industry is tourism. Tourism accounts for 28 per cent of GDP and more than 60 per cent of the Maldives' foreign exchange receipts. Fishing is the second leading sector with agriculture and manufacturing playing a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labour. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, account for about 7 per cent of GDP.

The Maldivian government began an economic reform program in 1989, initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalised regulations to allow more foreign investment. Real GDP growth averaged over 7.5 per cent per year for more than a decade.

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Visas

The Maldives have a remarkably easy visa policy: everybody gets a free 30-day visa on arrival, provided that they have a valid travel document, a ticket out and proof of sufficient funds, defined as either a confirmed reservation in any resort or US$100 + $50/day in cash. This can be extended up to 90 days in the capital Male.

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Healthcare

There are no serious problems with diseases in the Maldives and the islands are malaria-free. However, some islands do have mosquitoes and catching dengue fever from them is possible, albeit unlikely. The major health concern for visitors is diving or sun related injuries. Heat stroke is a particular issue given the propensity for tourists to spend long periods of time on boats where overheating is a problem. Lots of the resorts have their own doctor or nurse and most are within easy reach of the Decompression Chambers. Male also has an efficient and fairly modern hospital.

Travel

Practically all visitors arrive at Mal? International Airport located on Hulhul? Island right next to the capital Male. The airport is served by a wide array of flights to India, Sri Lanka, Dubai and major airports in South-East Asia, as well as an increasing number of charters from Europe. Many flights stop in Colombo (Sri Lanka) on the way.

There are no regular passenger boats to the Maldives and it should be noted that yachts usually steer clear, as navigating around the reefs is hazardous and permits are expensive.

Top tips for Maldives property
Guide to buying condos in Maldives
Guide to buying houses and land in Maldives

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