An amendment has been proposed to the Maldives Tourism Act to allow state-owned enterprises (SOEs) to build resorts.

The bill was proposed by Hithadhoo North MP Mohamed Sinan from the ruling People's National Congress (PNC).

According to his amendment, the government can allocate land, lagoon or islands for the development of a tourist resort or integrated tourism resort.

The government can allocate land, lagoon or islands to SOEs if approved by the cabinet under an agreement with the government after ensuring that the company has the financial and technical capacity.

The bill states that allocated land, lagoon or islands cannot be transferred or leased to a third party.

According to the amendment, land, lagoon or islands can be handed over to companies with at least 45 percent government stake.