Housing Minister Abdulla Muththalib said today that the Rasmalé Integrated Zone development project was awarded to UAE-based developer Eagle Hills without any tax concessions.
Both the government and Eagle Hills have announced that the project, unveiled today, will involve an investment of $20 billion in Rasmalé. Previous reports suggested that the development would be designated as a special tax zone.
However, Muththalib told the local newspaper Mihaaru that the project is proceeding without any "tax holidays" or exemptions. He further clarified that all business activities within the zone will be subject to standard national tax regulations.
Additionally, the Minister noted that an agreement has been reached to process all payments to contractors and suppliers through accounts held at Maldivian banks. He also stated that proceeds from the sale of residential units developed within the zone must be deposited into escrow accounts located in the Maldives.
Muththalib detailed the revenue-sharing model for the Rasmalé Integrated Zone, noting that the government will receive 10 percent of the revenue from the sale of commercial developments. Furthermore, a four percent registration fee will be levied on every real estate transaction in both the first and second phases. These revenue streams are projected to contribute over $11 billion to the state budget.
The government maintains that the land has been leased on a leasehold basis without transferring ownership. However, official details regarding the total land area leased, the lease duration, and the acquisition cost have not yet been disclosed.
According to the government, the Rasmalé Integrated Zone will feature international-standard hotels, resorts, and branded residences, alongside restaurants, retail outlets, entertainment facilities, and healthcare centres. Under the terms of the project, the contractor is also required to construct 5,000 social housing units at their own expense.
