Major investments must yield at least 50 percent equity for Maldives: Ameer

Former Finance Minister Ibrahim Ameer has stated that the Maldives should secure at least a 50 percent equity stake in major foreign investments entering the country, asserting that there are opportunities to negotiate far more lucrative deals than those currently in place.

Speaking at the 38th meeting of the MDP National Council's fourth session on Sunday night, Ameer heavily criticized the Ras Male' project.

Ameer stated that while the Maldives could potentially attract a trillion dollars in investment if the entire country were to be sold off, the government's proposed Ras Male' project is an economically irrational undertaking.

The ruling PNC is currently highlighting that they are securing an investment of a magnitude never before seen in Maldivian history. However, he noted that previous presidents refrained from such deals because they were unwilling to compromise the nation's sovereignty by selling off the country.

Former presidents of the Maldives were unable to achieve results in this manner. These outcomes are only possible because the entire country has been sold off; if you do that, even larger investments will follow. In such a scenario, securing one trillion dollars is entirely within the realm of possibility.

Ibrahim Ameer

Highlighting that the Maldivian Democratic Party (MDP) and all previous administrations have consistently supported Foreign Direct Investment (FDI) within the framework of the Constitution and existing laws, Ameer stated that investments from entities such as Eagle Hills, Mubadala, or the Saudi Public Investment Fund (PIF) are always welcome in the Maldives.

However, Ameer stated that what is currently being witnessed is the handover of reclaimed land, developed at a cost of one billion dollars, to a private party for 99 years to be utilized for business at their discretion, free of charge. He further noted that based on current market rates in Malé and Hulhumalé, the value of that land would amount to approximately $25 billion to $30 billion.

Furthermore, Ameer clarified that various figures are being circulated regarding the project. He explained that the $12 billion figure, or the $30 billion mentioned by the Finance Minister, refers to the projected Gross Development Value (GDV) or the total asset value of the township once it is completed in 10 to 15 years. Noting that significant investments are also underway in Vaavu Atoll, Ameer stated that the initial investment for this specific project is not expected to exceed $500 million.

He noted that while the Maldives receives only 10 percent of the revenue generated from the land, a sound Foreign Direct Investment (FDI) project should guarantee the country at least a 50 percent equity stake from day one. Ameer further emphasized that as a nation consistently ranked as a top global destination since the 1970s, the Maldives is capable of securing far more lucrative deals.