The Government of Maldives has gazetted important amendments to its public procurement policy aimed at widening participation by micro, small and medium enterprises (MSMEs) and strengthening the sustainable development capacity of local businesses. The reforms are designed to increase the role of Maldivian-registered MSMEs in state procurement transactions, ensuring broader access to government projects while supporting long-term private sector growth across the country.
Under the revised policy, procurements valued below USD 323,255 will now prioritize MSME participation, with contracts required to be awarded to the highest-scoring MSME bidder when such businesses are included among eligible bidders. This measure is expected to significantly expand opportunities for smaller enterprises, improve competitiveness, and foster a more inclusive procurement environment that recognizes the contribution of MSMEs to economic resilience and innovation.
The amendments also introduce clear provisions for construction projects, creating structured opportunities for contractors based on grading within the National Contractors Registry. Construction works valued below USD 32,425 are reserved for Grade 7 contractors, while projects ranging from USD 32,425 to USD 648,508 are designated for Grade 4, 5, 6, and 7 contractors. These changes are intended to ensure fair access to public works, enhance capacity-building among small and medium contractors, and encourage steady progression within the construction sector.
The reforms follow recent consultations between the Government and local business representatives, during which President Dr Mohamed Muizzu reaffirmed his commitment to addressing challenges faced by businesses, particularly MSMEs. In response to these discussions, the President approved updates to the procurement framework to better reflect the needs of local enterprises and to create a more enabling environment for their participation in public sector projects.
The Ministry of Finance has expressed confidence that the newly gazetted changes will increase MSME participation in state procurement and strengthen engagement across all segments of the economy. By broadening access to public contracts and promoting fair competition, the policy is expected to enhance private sector capacity, stimulate job creation, and unlock new opportunities for small businesses throughout the Maldives, reinforcing their role as a key driver of national economic growth.
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