Construction stalled on 88 islands leased for resort development

Oct 18, 2023, 12:58 PM
Lhaviyani Hudhufushi, unfinished after 22 years. -- Photo: Google Earth

Lhaviyani Hudhufushi, unfinished after 22 years. -- Photo: Google Earth

Construction remains stalled on 88 islands leased for tourism in the Maldives, the Finance Ministry has said.

According to statistics in the 'Fiscal Risk Statement 2023' published by the ministry, a total of 256 islands have been leased for resort development in the country, of which 168 islands are operated as resorts.

Development of the remaining 88 islands is not going ahead in line with the lease agreements, the statement noted.

Most of the islands with stalled construction are in Kaafu atoll with 29 islands leased for tourism that are not operational.

The failure to develop such a large number of islands is one reason for the lack of benefits from the islands to the country's economy as well as for the decline in revenue to the tourism sector.

Some 21,000 beds could be added for tourism from the 88 islands where work has stopped, the Finance Ministry estimated.

If the resorts are brought into operation, the Maldivian economy could directly and indirectly earn an estimated USD 1.7 billion.

The Fiscal Risk Statement also noted that more than 16,000 jobs could be created if the stalled resort islands come into operation.

A situational preliminary assessment of the undeveloped islands has been conducted in collaboration with the International Finance Corporation, the Finance Ministry said.

Work is ongoing with reference to the assessment to determine areas where government assistance could be provided in order to restart the stalled development.

Comments

Read More

Latest News

Priority should be sale of assets to generate immediate liquidity

Former President Mohamed Nasheed urged the Maldives to prioritize selling assets for immediate liquidity rather than long-term projects like the $20 billion Rasmalé development. He argued the UAE-backed waterfront deal will not provide the urgent cash flow needed to resolve the nation's current financial crisis.

Police seek charges against six men for assaulting officers

Maldives Police are seeking charges against six men for assaulting officers during a drug search in Maafushi. Five suspects remain in custody, while one was released by the court. Authorities have also appealed the release of a seventh individual involved in the August incident.

No tax concessions for UAE developer in Rasmale' project

The Maldives government awarded the $20 billion Rasmalé project to UAE developer Eagle Hills without tax concessions or exemptions. All business activities will follow national tax laws, with payments processed through local banks. The state expects over $11 billion in revenue from sales fees and commercial revenue sharing.

No details on size and value of land given to Dubai company

The Maldives government signed a $20 billion deal with Dubai’s Eagle Hills to develop a massive integrated zone in Rasmalé. While the project promises 54,000 jobs and housing, officials have withheld specific details regarding the land size, valuation, and lease terms. The area is expected to operate as a special economic township.

Rasmale' investor to build 5,000 housing units in Hulhumale'

The Maldivian government has partnered with UAE-based Eagle Hills to build 5,000 housing units in Hulhumalé using a contractor financing model. This agreement follows a massive $20 billion deal for the firm to develop Rasmalé. The project will feature luxury residences and a world-class marina without impacting existing housing plans.

AMFA concludes first Junior Lifeguard Program

The Australia Maldives Friendship Association successfully completed its first Junior Lifeguard Program pilot in Thulusdhoo and Fuvahmulah. The initiative trained youth in water safety and rescue skills to enhance maritime security. AMFA plans to expand the program across the Maldives by 2027 through partnerships with local councils.

Project to build international bowling arena in Hulhumale'

A private company has been awarded a MVR 20 million project to build the Maldives' first international-standard bowling arena in Hulhumale'. The two-story facility aims to host global competitions, though the direct award process lacks an official statement. This project is part of a broader plan to develop world-class sports infrastructure.

Newsletter

Get the latest news delivered straight to your inbox