MP Shamheed detaila transition of a lagoon in Noonu Atoll from SEZ to a township development project, highlighting subsequent losses incurred

Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumalé constituency, has disclosed a detailed timeline regarding the transformation of a large lagoon in Noonu Atoll into a sustainable township under the Special Economic Zone (SEZ) framework, while highlighting the resulting financial losses to the state.

Speaking in Parliament on Sunday, MP Shamheed raised several concerns regarding the project.

MP Shamheed stated that on December 26, 2022, a 700-hectare lagoon in Noonu Atoll was leased to a foreign entity for a period of 99 years. He noted that the project's leasehold was transferred to Crystal Holdings Private Limited on December 28, 2023, and the Environmental Impact Assessment (EIA) was subsequently approved in April 2024. According to the EIA report, the project involves reclaiming a total of 200 hectares of land—comprising 11 islands and 24 sandbanks—to develop a high-end luxury resort with 262 rooms. He further highlighted that the reclamation work commenced in April 2024, with the completion of the dredging process announced in February 2025.

MP Shamheed stated that while the resort was under development, a bill was submitted to Parliament on November 10, 2025, to designate the sustainable township as a Special Economic Zone (SEZ). He further noted that the license to operate the lagoon as an SEZ was issued on December 9, 2025, less than a month after the legislation was passed.

MP Shamheed stated that it remains unclear under which specific law or regulation a site already under development as a resort was permitted to be converted into a Special Economic Zone (SEZ).

Furthermore, he stated that the Ministry of Economic Development has signed an agreement with Henley & Partners in Singapore under the "Pearl Visa" program to recruit foreign residents for the township and facilitate visa sales. He further noted that the benefits to the Maldivian state under this agreement remain unclear. He highlighted that the state would also lose out on $79 million in withholding tax due from this 790 million rufiyaa contract.

Furthermore, Shamheed noted that the state would face losses under international treaties, as this law mandates a 5 percent income tax rate instead of the standard 15 percent.

MP Shamheed further noted that this initiative differs significantly from programs like Malaysia’s "My Second Home," as it involves operating an area under the control of a specific group. Citing an example from Honduras, where a similar zone was established only to be halted by the country’s parliament and Supreme Court—resulting in an $11 billion lawsuit—he expressed concern that this agreement also contains dangerous provisions.

MP Shamheed stated that all details regarding the agreements signed with Hanlyan Partners and the township project must be clearly disclosed to the Parliament and the Maldivian public.

Emphasizing that the resolution regarding the Maldives Pearl Residence Program was not submitted with any ill intent, MP Shamheed stated that the motion aims to ensure transparency for the public regarding state benefits and ongoing developments. MP Shamheed further noted that both President Muizzu and members of Parliament must have a clear understanding of which specific provisions are being waived or granted under the existing legal framework.

When we release six billion dollars of the Maldivian people's tax money, we must know exactly how many dollars will be received in return.

Dr. Ahmed Shamheed

Furthermore, he stated that it remains unclear how the land rent would be collected under this agreement or the specific legal framework governing it. He also noted that if the company were to be granted any legal concessions, there would be grounds to pursue the matter through the judicial process.

MP Shamheed has called on the Parliament's 241 Committee and the Public Accounts Committee to conduct a thorough investigation into all matters related to the township project and to submit a formal report to the floor.