Rasmalé deal Is "rooted in deception" and risks diplomatic crisis: Shahid

Oct 4, 2026, 9:44 AM
Former Foreign Minister and former President of the MDP, Abdulla Shahid, addresses the closing ceremony of the MDP Congress held last night. -- Photo: MDP

Former Foreign Minister and former President of the MDP, Abdulla Shahid, addresses the closing ceremony of the MDP Congress held last night. -- Photo: MDP

Former Foreign Minister Abdulla Shahid has warned that the agreement to grant 500 hectares of Rasmalé to Eagle Hills of the United Arab Emirates (UAE) was a project rooted in deception from its start, potentially jeopardizing relations with close allies like the UAE.

Speaking at the closing ceremony of the MDP’s fifth congress last night, Shahid, the former President of the party, described the Fushidhiggaru lagoon or Rasmalé agreement as "deceptus ab initio"—deceptive from the start.

Shahid alleged that the current administration lacks transparency in its dealings with foreign companies and states. He claimed that the public remains in the dark regarding the contents of the Rasmalé agreement, the financing of the reclamation project, and the specifics of the deal with Eagle Hills.

"There is deception in how the lagoon is being reclaimed and how the funds are being spent. From the sand dredging to every other aspect, it is a massive deception," said Shahid, who also served as the President of the UN General Assembly.

"The method of allocation and the agreement itself were deceptive. You may recall the term 'void ab initio' being introduced to us previously; these two are identical twins."

Shahid noted that such secret agreements would hinder the Maldives' foreign relations and lead to economic hardship. He warned that the consequence would be "bringing Maldivians to a diplomatic crossroads."

Shahid emphasized that as a small nation, severing international ties would inflict unsustainable damage on the economy. He added that the Maldives' independence and sovereignty can only be protected by maintaining close relations with neighbors.

"The world is becoming increasingly globalized and integrated. No one can survive in this world in isolation. Today, diplomatic relations between nations are the lifelines of the global economy. If those lifelines are severed, the economy of a small nation like the Maldives will face unimaginable shocks. The burden of that vulnerability will be borne by businesses and the general public."

The 500 hectares of Rasmalé, currently being reclaimed using the state budget under the guise of ensuring housing for Maldivians, is slated to be leased to Eagle Hills for an indefinite period of 99 years. After agreeing to the terms to sell Rasmalé to the company, the government stated—following public outcry—that the formal agreement would only be signed after necessary legislative changes are made.

Some observers have noted that relinquishing Rasmalé in such a manner poses a threat to the very identity of the Maldives.

Describing the current administration as incompetent and built on a foundation of lies, Shahid vowed that the party would rescue the people from this "dark situation." He stated that the MDP’s goal is to establish a government that does not lie, is compassionate, and enhances the prosperity of the people.

Reflecting on the current state of the nation, Shahid said the Maldivian economy is currently "drained," while the healthcare system and housing policies have collapsed. Noting that job opportunities are closing and the standard of living for ordinary citizens is declining, he remarked that this government has extinguished the flame of hope that the MDP had ignited for the people.

He highlighted that a "trap" has been set for those working in the tourism industry under the pretext of mandatory dollar conversion regulations.

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