After claiming that not even a grain of sand would be ceded to foreigners, government is now handing over a portion of Noonu Atoll: Ziyad

Despite the current administration's pledge not to cede even a grain of Maldivian sand to foreign parties, Member of Parliament for the Vaikaradhoo constituency, Hussain Ziyad, has alleged that a significant portion of Noonu Atoll is being handed over for a township development project.

Speaking on RaajjeTV’s "TV Talk" program, MP Ziyad stated that allocating portions of Noonu Atoll and Laamu Atoll for the township project would lead to the erosion of the Maldives' national identity.

MP Ziyad stated that under the recent amendments to the Special Economic Zone (SEZ) Act regarding townships, foreign nationals relocating to the Maldives will be exempt from paying state taxes. He further noted that these changes grant such individuals the freedom to engage in any activity of their choosing within the country.

Member of Parliament Ziyad highlighted that while Maldivians are required to pay between 5 and 8 percent interest to the state by the time they complete payments for a Hiyaa flat, the interest rate set for those living in the [foreign] township is only one percent.

A Maldivian citizen is required to pay a down payment of 25,000 for a Hiyaa flat. By the time the purchase is finalized, they are subjected to interest rates ranging from five to eight percent. In contrast, foreigners are charged only one percent. Furthermore, foreigners are granted the freedom to conduct any activity of their choosing within these premises. They are also exempt from falling under any taxation requirements.

Hussain Ziyad

MP Ziyad stated that resorts in Noonu Atoll are required to pay $40 to the state for every $100 they earn. However, he noted that the township is only required to pay $2 to the government for every $100 earned.

Noonu Atoll is one of the most luxurious destinations in the Maldives. At the neighboring Siyam World resort, for every 100 dollars generated, 40 dollars must be paid to the state. In contrast, these individuals are only required to pay 2 dollars.

Hussain Ziyad

MP Ziyad stated that instead of executing this project in an area like Noonu Atoll, where the tourism industry is already well-established, implementing such large-scale projects in atolls facing challenges in the tourism sector would be far more beneficial for the citizens.

However, Member Ziyad stated that settling foreigners in the Maldives with such significant concessions demonstrates the extent to which the country's social fabric has deteriorated.

The previous MDP administration awarded the project to develop ultra-luxury resorts on the island of Digufaru in Noonu Atoll. It is estimated that these resorts will generate over 70 million Rufiyaa annually for the state in GST and TGST revenue.

However, following sudden amendments made to the Special Economic Zones (SEZ) Act by the current administration, this project has been granted "Sustainable Township" status. These legislative changes introduce numerous concessions for foreign nationals residing within the township. The government has faced widespread public criticism over these developments.