Ras Male' Project to Generate $11 Billion for State Over 10 Years: Finance Minister

Minister of Finance Hassan Zareer has stated that the Ras Male' Waterfront and Marina project is projected to generate approximately $11 billion in state revenue within 10 years of its completion.

The Maldivian government signed an agreement with Abu Dhabi’s renowned Eagle Hills company on September 21st this year to undertake a massive $20 billion project, marking one of the largest foreign investments in Maldivian history.

In a series of social media posts, Minister Zareer stated that the project is projected to generate an average annual revenue of $1.1 billion for the state. The Minister highlighted that this figure exceeds the total combined revenue currently generated from the Maldives' 179 resorts, 16 hotels, 920 guesthouses, and 165 safari vessels. He further noted that this initiative would significantly bolster the nation's fiscal position and pave the way for long-term national development.

Detailing the project's revenue-generating mechanisms for the state, the Minister explained that in addition to standard TGST rates, the government will receive 10 percent of the developer's income from the initial sale and lease of these properties. Furthermore, the Minister stated that the state would collect a 4 percent fee on the property value during the initial purchase, as well as for every subsequent transfer of ownership.

The Minister stated that under this agreement, no tax concessions or duty exemptions will be granted, nor will the government issue any loans or sovereign guarantees. Consequently, he emphasized that this project ensures significant revenue for the state without any financial burden. Furthermore, all proceeds from property sales will be deposited into an escrow account opened within the Maldives. The Finance Minister also noted that these funds will be utilized through Maldivian banks in accordance with the agreement.

According to the Minister of Finance, the development of this massive 500-hectare land area is scheduled to be carried out in multiple phases over a 10-year period. The project encompasses residential housing, hotels, resorts, and marinas, as well as retail spaces, offices, and high-quality educational and healthcare facilities. The Finance Minister further noted that upon completion, the project is expected to attract over one million tourists annually. This is projected to generate an annual revenue of $2 billion from the tourism sector alone, providing a significant boost to the Maldivian economy.

A constitutional case has been filed with the Supreme Court seeking the annulment of the agreement to proceed with this project. The petition contends that under Article 250 of the Constitution, the leasing or alienation of state property must be conducted within a prescribed legal framework, and that there is currently no law in the Maldives that permits the leasing of state land to foreign entities for a duration of 99 years.