A definitive agreement to grant 500 hectares of land from the Rasmalé reclamation project at Fushidhiggaru lagoon to UAE-based Eagle Hills—a company noted for its ties to Israel—is scheduled to be signed on Republic Day.
Sources have informed Adhadhu that the government is currently making final preparations to sign the permanent agreement on Republic Day. These preparations include legislative amendments, as current laws do not accommodate certain aspects of the project.
In an interview with "Sun" last Thursday, Eagle Hills Chairman Mohamed Alabbar expressed his hope to sign the permanent agreement before Republic Day.
The commercial terms for the handover of Rasmalé were signed on September 21 during a ceremony in Dubai. That interim agreement spans three months and is set to expire on December 21.
Republic Day is celebrated annually on November 11. It marks the 58th anniversary of the Maldives' transition from a monarchy to a republic.
During an interview with several media outlets at Feydhoo Finolhu last Thursday, Alabbar was asked whether a new 99-year lease period would be triggered every time a property at Rasmalé is resold.
Alabbar did not provide a direct answer to the question, stating only that he would abide by Maldivian law. He declined to disclose specific details contained within the commercial terms agreement signed on September 21.
"We operate in about 20 countries. We must follow the laws of each of these countries. We must comply with whatever is written in the law. If the law states [the maximum leasehold] is 99 years, then the lease [agreement] must reflect that," Alabbar said.
Alabbar also noted that laws and regulations are subject to change, suggesting that the project would adapt accordingly.
"Even if regulations change, we will always comply with them. Even if the laws change, we will proceed according to what the law dictates," he said.
The government has allocated the land for Rasmalé without charging a land acquisition fee or ground rent. Instead, the state will receive a 10 percent fee when the developer first sells a building, along with a 4 percent fee from the buyer. A 4 percent fee will also be collected every time ownership is transferred.
Although the government maintains that Rasmalé has been leased for 99 years, Adhadhu understands that the current agreement could lead to a total loss of the land. Under the terms, if a property owner in Rasmalé sells or gifts the property, a new 99-year lease term begins.
The government has not made the agreement with Eagle Hills public, despite widespread concerns regarding the deal.
