Muizzu: No Sovereign Guarantees or Tax Breaks for Ras Male’ Project

President Dr. Mohamed Muizzu has stated that the mega-project to develop Ras Male' is not being financed through sovereign guarantees, loans, tax concessions, or duty exemptions. He further clarified that land in the area will be issued solely on a leasehold basis.

Speaking during the "Nation Chat" program on Friday night, President Muizzu stated that the government will not grant land ownership to any foreign entities, noting that such actions are strictly prohibited by the Constitution. He further highlighted that although a previous administration had amended the Constitution to allow foreign land ownership, that specific provision has since been repealed.

President Muizzu stated that none of the current administration's investments will involve any actions that contravene the Constitution. He emphasized that the government's objective is to attract the maximum possible investment to the Maldives without granting land ownership.

"I will certainly not allow this land to be owned by any private party. My objective is to attract the maximum possible investment to this area without granting ownership rights. This is exactly how the entire project has been structured.

President Muizzu

Addressing the opposition's criticism regarding the Ras Male' project, President Muizzu stated that such remarks are consistently made to obstruct any initiative that brings progress to the nation. The President asserted that he would not allow any obstacles to hinder the project's advancement.

Assuring the public that the Ras Male' project will not hinder any housing opportunities or affect the land plots already designated for allocation, President Muizzu stated that while the entire project is estimated to take approximately 10 years to complete, essential services will be established much sooner.

In this regard, the President revealed that while efforts are underway to complete the land reclamation of Ras Male' within this year, preparations are being made to award contracts for essential utilities—including water, sewerage, electricity, and road construction—to ensure these projects commence early next year as the reclamation nears completion.

President Muizzu stated that this project will elevate the Maldives' economy and GDP to unprecedented heights, while creating thousands of jobs and numerous business opportunities for the citizens.

While the President has assured that he would never allow Maldivian land to be owned by any foreign party, the land being leased to Eagle Hills is for a 99-year term. However, under the terms of the agreement, this 99-year period resets whenever the property is sold or inherited. Consequently, this arrangement effectively transforms into an indefinite, permanent tenure. As a result, a vast area of 5.2 million square meters of Maldivian territory would pass into the permanent ownership of a foreign entity.

While this project is being hailed as the largest investment in Maldivian history, it is not a venture that will bring an immediate influx of $20 billion into the country. Furthermore, a transparent and credible mechanism for securing the necessary funding has yet to be disclosed.