Leaked Audio: Muththalib Says Ras Male' Properties to Be Sold on Renewable 99-Year Leases

An audio recording has been leaked in which Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib, reportedly states that property in Ras Male' will be sold on 99-year renewable leases.

Audio recordings of Minister Muththalib making these remarks have been circulating on social media. Several local media outlets have since confirmed the authenticity of these recordings.

Minister Muththalib stated that Ras Male' has been leased to Eagle Hills for a 99-year term. Furthermore, as investors purchase properties from the company, a special arrangement with the government ensures that in the event of a resale between investors, the new owner will be granted a fresh 99-year lease period.

Minister Muththalib stated that this policy was established to prevent the value of these properties from depreciating over time. He further noted that without such an arrangement, investors would be hesitant to commit to these types of projects.

We are currently exploring how to implement the 99-year mechanism stipulated in the Constitution. Under the existing framework for tourism leases, the government is faced with two primary options once a 99-year term expires. The first option is for the government to repossess the property by compensating the developer for all assets on the site. However, it is practically impossible for the government to pay out compensation for properties valued at hundreds of millions of dollars. The alternative, if compensation cannot be paid, is for the government to put the property up for bid, with the new winning bidder compensating the previous owner. Another approach currently available is to allow the existing lessee to extend the lease by paying an acquisition fee, thereby continuing their operations.

Abdulla Muththalib

Furthermore, Minister Muththalib stated that the government will retain the authority to approve or reject the transfer of ownership for any property purchased in Ras Male', noting that no transfer can be finalized without official government authorization.

The Maldivian government has signed a commercial terms agreement with UAE-based Eagle Hills to develop the "Maldives Waterfront and Marina" project in Ras Male'. The deal has sparked widespread concern among religious scholars, the general public, and political figures, who are raising alarms over the allocation of a significant portion of Maldivian territory to foreign entities.