The government has announced a $20 billion project in Rasmalé in partnership with Dubai’s Eagle Hills Developers, though officials have withheld key details regarding the total land area being allocated from the Fushidhiggaru lagoon and the valuation of the deal.
The agreement was signed in Dubai this morning with Eagle Hills, a company founded by Mohamed Alabbar, the visionary behind the UAE’s Emaar Properties.
News of the signing first broke in UAE media before being picked up by Maldivian outlets citing international reports. Following the initial coverage, the Housing Ministry released an official statement via its social media channels.
According to the Ministry, the project will involve the development of a large-scale integrated zone in a section of Rasmalé, featuring a waterfront and a marina. This zone is set to include international hotels, resorts, branded residences, restaurants, and retail outlets, alongside entertainment and healthcare facilities.
While the statement provided estimates of the project’s total cost and highlighted potential benefits, it remained silent on the location, the exact size of the land being handed over, and the financial terms of the lease.
Sources informed Adhadhu that the area is being developed as a "township" under the Special Economic Zone (SEZ) Act. This section of Rasmalé is expected to be designated as a special tax and duty-free zone.
However, the government’s statement quoted Housing Minister Abdulla Muththalib asserting that the state would generate revenue from every business operation within the zone without granting any tax exemptions.
"This is the largest investment program in Maldivian history—bringing tens of billions of dollars in foreign investment through our banking system, creating over 54,000 jobs, providing housing for thousands of Maldivian families, and ensuring direct state revenue from every sale, achieved without tax concessions or sovereign debt," the Minister stated.
Sources familiar with the Rasmalé Marina project claim that 500 hectares of land are being allocated to Eagle Hills. This accounts for nearly half of the 1,058 hectares the government previously announced would be reclaimed from Fushidhiggaru lagoon. For the purposes of this transaction, the government has reportedly valued the land at MVR 6,000 per square foot.
Based on these figures, the total valuation of the land being handed over amounts to approximately MVR 318 billion. This figure aligns with the $20 billion investment value cited by both the government and the Dubai-based firm.
Sources further revealed that the government has decided to waive the direct land payment in exchange for the developer constructing social housing units. The administration reportedly believes that while this may represent a financial loss in terms of direct revenue, the social benefits of addressing the housing crisis outweigh the cost. Muththalib has noted that these housing units are slated for construction in Hulhumalé.
Adhadhu attempted to contact the Chief Government Spokesperson, Mohamed Hussain Shareef (Mundhu), to verify these details; however, he did not respond to calls.
The Rasmalé project, the flagship initiative of the current administration, is being promoted as the "total solution" to the Maldives' housing crisis. The government envisions the site as a modern, climate-resilient, and environmentally friendly "eco-city."
