Tourism Minister Mohamed Ameen has announced that the government will begin taking action next week against stalled resort development projects that have remained incomplete for years.
In September, the Ministry gazetted a new regulation that allows the government to terminate lease agreements for properties without granting further extensions.
Speaking at the "Ahaa" public forum on Sunday night, Ameen confirmed that enforcement under this regulation would commence within the coming week.
"The fact that these islands and lagoons have remained under private control for so long is a matter of direct public interest. The Construction Period (CP) regulation has been gazetted to categorise these projects into four tiers, facilitating a clear termination process," he said.
The Minister noted that previous administrations had failed to address these agreements effectively, leading to a situation where outstanding payments owed to the state have surpassed $500 million.
"These islands and lagoons belong to the people. The state must receive its tax revenue, and these projects must generate employment opportunities. These properties cannot remain in the hands of a few indefinitely. Therefore, we are moving into the implementation phase of taking action. God willing, you will see these measures being enforced within the next week," Ameen said.
Under the new regulation concerning unfinished tourism developments, the same framework applies to properties regardless of whether their construction periods have been officially extended.
However, the immediate repossession of land without further notice is reserved for properties meeting specific criteria. In other cases, the Ministry retains the discretion to either grant a final opportunity for completion or proceed with enforcement actions.
The Ministry will offer a final grace period to unfinished resorts where the initial grace period has expired, no extension has been granted, and the lease duration has not yet reached eight years. If these projects are not completed and brought into operation within this final window, their lease agreements will be terminated.
The Ministry also holds the authority to take action against projects with active construction periods where no work is currently taking place. In cases where more than 50 percent of the construction is already complete, the Ministry maintains the discretion to grant further extensions.
While the government has introduced this detailed regulation to outline the procedures for repossessing long-delayed properties, the state has always possessed the legal power to terminate agreements for non-development. Historically, however, successive administrations have prioritised offering concessions and extensions in an effort to see the resorts eventually open rather than reclaiming the land.
