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Amendment to the law creating the Economic, Health and Food Inspection and Supervision Authority (AIFAESA)
The Authority for the Inspection and Supervision of Economic, Health and Food Activity (AIFAESA), created by Decree-Law no. 26/2016, of June 29, has the mission of ensuring control of the quality of foodstuffs, including their transport conditions and the healthiness of production and marketing sites, as well as establishments and places of public use. Among other functions, AIFAESA is responsible for verifying the quality of water for public consumption, whether bottled, from the public network, or from reservoirs and springs used by the population.

With the creation of the National Institute of Public Health of Timor-Leste by Decree-Law No. 84/2022 of November 23, whose mission is to create and establish a national reference laboratory with specific powers to carry out advanced laboratory tests.

Following this, and in order to optimize material and human resources, it is necessary to coordinate activities between AIFAESA and the National Institute of Public Health of Timor-Leste, with the decree defining that the National Institute of Public Health should focus on collecting samples and carrying out laboratory tests related to public health and food, while AIFAESA will maintain its competencies in terms of inspection and supervision of economic, health and food activity.
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New Competition Law in Timor-Leste
2026-04-10
New Competition Law in Timor-Leste
Law No. 1/2026, of 25 March, establishes the Competition Law framework in Timor-Leste, promoting free competition through the prohibition of restrictive practices, the introduction of a mandatory merger control regime, and enforcement by a new competent public authority with supervisory and sanctioning powers (with the Central Bank of Timor-Leste acting in the financial sector); it applies, in principle, to all economic activities, with oil, natural gas and minerals excluded, prohibits agreements and abuses (including dominance, economic dependence and purchasing power), allows efficiency-based exemptions, requires prior notification of certain concentrations, provides for market studies and fines of up to 10% of turnover, will enter into force on 21 September 2026, and its effectiveness will depend on the establishment of the authority, with companies advised to assess its impact on their activities.

See our Legal Alert here.
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Guide to Doing Business in Timor-Leste
2026-03-02
Guide to Doing Business in Timor-Leste
Timor-Leste is Asia's youngest nation, having restored its independence in 2002. Since then, it has shown remarkable resilience, pursuing economic development with a young and dynamic workforce, a rich cultural heritage, and growing business potential.

Timor-Leste has significant prospects for economic growth, particularly in the oil and gas and critical minerals sectors. While oil and gas account for 90% of the country’s total exports, new opportunities are emerging to further develop its hydrocarbon resources. Projects such as Chuditch and Greater Sunrise reinforce Timor-Leste’s role in energy production and supply within the APAC region. At the same time, the global demand for critical minerals – such as lithium, cobalt, and rare earth elements – places the country in a strategic position to integrate into the global supply chain. Although its mining sector is still developing, partnerships with international companies are driving the exploration and extraction of these valuable resources. Since 2008, Timor-Leste has been a member of the Extractive Industries Transparency Initiative, ensuring a legal framework that supports adequate reporting.

Additionally, agribusiness plays a crucial role in the country's economic diversification, with coffee accounting for 7% of total exports. The country’s rich soil and favourable climate offer opportunities for expanding agricultural production, positioning Timor-Leste as a key supplier for the region.
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The kick-start of the mining industry in Timor-Leste
2025-12-10
The kick-start of the mining industry in Timor-Leste
Timor-Leste’s economy remains heavily reliant on oil and gas revenues, with the Petroleum Fund (Fundo Petrolífero de Timor-Leste) serving as the country’s primary source of income. Offshore natural gas projects, such as Greater Sunrise, continue to hold significant potential. However, an essential step on Timor-Leste’s path to long-term prosperity is the diversification of its economy to generate employment and sustain growth.

The nation is therefore undergoing a period of economic transition, seeking to move beyond hydrocarbons and broaden its economic base. One particularly promising avenue lies in the development of a mining sector.

Timor-Leste is still vastly under-explored, and mining activity is at a very early stage of development, offering considerable opportunities for future growth. Following the successful completion of the first round of the Mineral Public Tender in 2023, on 24 November 2025, ANM announced the second mineral public tender for awarding exploration and evaluation licences for metallic minerals, gemstones, industrial minerals, radioactive minerals, and rare earth minerals.

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