Attorney General (AG) Ahmed Usham announced today that the government has decided to draft new legislation to facilitate the Rasmalé project, as current laws do not permit the development to proceed under its proposed terms.
The government has agreed to lease Rasmalé to UAE-based Eagle Hills for 99 years. Under the agreement, if a foreign national who purchases an apartment at Rasmalé sells or gifts the property during their 99-year lease, a new 99-year lease term will commence for the recipient.
Amidst a Supreme Court challenge seeking to halt the project on the grounds that such leasing arrangements are unconstitutional, Usham said in a post on X that the necessary "laws must be passed by Parliament" before the project can move forward.
"The project planned for Rasmalé will be governed under the Real Estate Act currently being drafted," Usham said. "Before the project begins... the relevant laws must be passed by Parliament."
Minister of Construction Abdulla Muththalib signed the Rasmalé agreement on behalf of the government on September 21. Usham clarified that the document signed at the time was a Letter of Intent outlining the commercial terms of the project.
Furthermore, the Attorney General noted that additional "definitive agreements" would be signed prior to the commencement of the project. He emphasized that these future contracts would be based on the terms established in the existing preliminary agreement.
"Before the project starts, definitive agreements will be signed, which will be formulated following further discussions based on the terms in this [current] agreement," he said.
While the Constitution of the Maldives allows land to be leased to foreigners for periods not exceeding 99 years, there is currently no specific enabling legislation for such arrangements. The Tourism Act currently limits leases to 50 years, with the possibility of a 49-year extension.
Under the Special Economic Zones (SEZ) Act, land can be leased to foreign entities for a maximum of 66 years, with a potential extension of 33 years.
The government’s agreement for Rasmalé waives both acquisition fees and land rent. The state’s only financial benefit from the deal consists of 10 percent of the revenue generated from the sale of commercial properties and 4 percent of the revenue from apartment sales.
Muththalib stated that the state expects to receive $3 billion (MVR 46 billion) over 10 years from the sale of buildings in Ras Malé. This projected total is less than the value of the Maldives' national budget for the previous year.
