Law allowing foreign ownership in Maldives could trigger ‘cold war’ between India and China
Vice-president Ahmed Adeeb insists change is aimed at attracting foreign investment in the same way as Dubai, Singapore and Saudi Arabia had done with special zones.
A new law allowing foreigners to own land on the Maldives, the island nation known for luxury tourism, has sharpened regional competition for influence over one of the busiest oceans in the world.
Dozens of foreign companies already run luxury resorts on islands that they lease from the government of the honeymoon islands for a maximum of 99 years.
The law would allow foreigners who invest more than US$1 billion to own land in perpetuity, provided 70 per cent of it is reclaimed from the sea.
India has watched warily as the Maldives, which held its first free elections in 2008 after more than three decades of autocratic rule, has tilted towards China in recent years.
The two emerging Asian powers are battling for influence in the region, with Delhi concerned at what it sees as aggressive moves by Beijing in what it considers its backyard.