The government has decided to lease 500 hectares of Rasmalé—equivalent to half of the reclaimed island—to a UAE-based company for 99 years, despite previous promises not to cede a single grain of sand to foreign entities.
The land is being leased to Eagle Hills, a company owned by Mohamed Alabbar, the prominent real estate developer behind the Burj Khalifa. The commercial terms for the development of Rasmalé were signed on Monday.
However, during his address at the official ceremony marking the Maldives' Independence Day on July 26, 2024, President Mohamed Muizzu asserted that Rasmalé would not be "leased to any foreign party for even a single day, nor would it be granted for free."
"Every grain of sand on every piece of land reclaimed [in Rasmalé] belongs to the Maldivian people. It is not land that will be leased to any foreign party for even a single day, nor will it be given for free; that is not how the reclamation will proceed," the President had stated.
Furthermore, Muizzu emphasised that further reclamation of Rasmalé would be conducted without the need to grant any land in exchange.
"Because we were dissatisfied with how the Rasmalé project was previously managed, we terminated that agreement. We have decided to proceed in a manner where no land has to be given to any party, whether for a short or long term, and that work has now resumed," he said.
The announcement that Rasmalé would be leased to the UAE firm for 99 years was made by Finance Minister Hassan Zareer during an interview with the state broadcaster, PSM.
"Many investors in the Maldives are currently operating projects, including large-scale resort properties worth $200 million to $300 million. These properties are being developed by leasing them for up to 99 years within the Maldives' current legal framework," he said.
Rasmalé is being developed as a tourism destination and will include a marina. Foreign nationals have already been offered the opportunity to purchase rooms at the development on long-term leases.
