The Chairperson of the Maldivian Democratic Party (MDP) and former President, Mohamed Nasheed, has raised concerns regarding the allocation of 500 hectares of land in Rasmalé to the UAE’s Eagle Hills for the development of a luxury city for the wealthy.
Nasheed highlighted that one of the major issues is the Maldivian state’s failure to receive any upfront payment for the deal.
The government has agreed to lease the Rasmalé land to Eagle Hills for a period of 99 years. Under the terms, foreign nationals purchasing apartments in Rasmalé will receive a 99-year lease; notably, if the property is resold or gifted, a fresh 99-year lease period will commence.
In a post on X, Nasheed stated that while opening a residency program is fundamentally a sound concept, the lack of transparency regarding the Eagle Hills contract means the full details remain unknown.
"Based on what has been heard so far, I have two main concerns: the lack of advance payment and the fact that this development is situated within the Malé region," Nasheed wrote.
Nasheed suggested that the best course of action for the government would be to submit the project contract to the People’s Majlis. He noted that the government could utilise its supermajority to pass the necessary legal framework required for the project.
The government has agreed to hand over the land without charging an acquisition fee or land rent. The state’s only projected earnings from the venture are 10 percent of the revenue from the sale of commercial properties and 4 percent of the revenue from apartment sales in Rasmalé.
Construction Minister Abdulla Muththalib said the state expects to generate $3 billion (MVR 46 billion) over 10 years from the sale of buildings in Rasmalé. This projected total is less than the value of the state's annual budget for the previous year.
