Finance Minister says current USD shortage will be resolved with commencement of the "Eagle Hills" project

Minister of Finance Hassan Zareer has stated that the current dollar shortage facing the Maldives will be resolved with the commencement of the "Eagle Hills" project.

In an interview with state media, Finance Minister Hassan Zareer stated that the Maldives' tourism sector currently generates $5 billion in revenue. However, the Minister noted that a significant portion of these earnings is being funneled out of the country through various channels.

Zareer stated that the project has been structured to prevent the outflow of US dollars from the Maldives. He further noted that the foreign currency generated through this initiative will be channeled directly into the domestic banking system and the local economy. According to Zareer, the project is designed to address the current challenges in dollar liquidity, providing significant relief to the country's ongoing foreign exchange difficulties.

The initial influx of approximately $30 billion within the first year is several times the current size of the Maldivian economy. Furthermore, these operations are projected to generate an annual revenue of around $2 billion. This project is set to bring about an economic transformation of a magnitude that is difficult to fully comprehend. Consequently, this initiative will serve as a catalyst in alleviating the significant financial challenges we currently face.

Minister of Finance Hassan Zareer

Highlighting that the project will alleviate current challenges related to dollar liquidity and broader economic pressures, Zareer stated that all revenue generated from the sale of lease rights will be deposited into an escrow account. He further noted that this account would be established at a bank agreed upon by the Maldivian government.

The Maldivian government has signed an agreement with renowned Abu Dhabi-based developer Eagle Hills to execute a massive $20 billion project in Ras Male'. Under this agreement, an international-standard waterfront and marina development will be established in Ras Male'. According to the government, this represents one of the largest foreign investment projects in Maldivian history.

Since President Dr. Mohamed Muizzu assumed office, the public has been facing significant challenges in accessing US dollars. Amidst widespread rumors of a dollar shortage at the Bank of Maldives (BML), the government has secured a loan of several hundred thousand dollars from a private party.