The Cabinet passed major constitutional amendments last year to establish real estate development zones in the Maldives and facilitate foreign ownership of land and buildings, Adhadhu has learnt.
Although the decision to amend the Constitution and relevant laws to allow foreign property ownership was made during a Cabinet meeting in September 2025, implementation has remained stalled until now.
Adhadhu has obtained a copy of the Cabinet’s decision and a draft document outlining the proposed constitutional changes.
The authenticity of these documents has been verified by multiple sources. Efforts to obtain a comment from the President’s Office were unsuccessful, as Government Spokesperson Mohamed Hussain Shareef (Mundhu) did not respond to phone calls.
Sources indicate that while the Cabinet approved the policy to allow foreign land ownership, its implementation was delayed due to the government’s defeat in the local council elections and the referendum. Additionally, the difficult political situation faced by President Mohamed Muizzu following the release of Adhadhu's "Aisha" documentary contributed to the delay.
Recognising that allowing foreigners to own land is a sensitive issue likely to trigger public concern, the Cabinet also approved a comprehensive public relations strategy last year to be executed alongside the policy’s implementation.
While the President’s Office occasionally publicizes Cabinet decisions, it has never disclosed the decision to allow foreign land ownership.
What does the Constitution currently say?
Article 251 of the Constitution stipulates that no part of Maldivian territory shall be alienated to a foreign party. It further states that any part of the Maldives may only be leased or otherwise granted to a foreign party for a maximum period of 99 years.
The Cabinet decision
In September 2025, prior to the major electoral setback in the council elections, the Cabinet approved a proposal submitted by Housing Minister Abdulla Muththalib. The proposal aimed to establish a legal and administrative framework to increase foreign investment, focusing on the following key areas:
- Amending the Constitution.
- Drafting a law on foreign real estate ownership.
- Drafting a Real Estate Development Act.
- Establishing a dispute resolution mechanism for property issues.
- Amending the Immigration Act to issue special residential visas based on investment thresholds.
- Appointing a Registrar of Properties.
- Establishing a new agency named the Property Regulatory Authority of Maldives.
Key constitutional changes
Since Article 251 currently prohibits land ownership, the bill discussed by the Cabinet includes provisions to add sub-clauses to that article.
According to the paper submitted by Muththalib, specific areas designated by Presidential Decree can be developed as Real Estate Development Zones. Foreigners would be permitted to own land or buildings within these designated zones.
However, the bill specifies that the Maldivian state will maintain full sovereign authority over these areas, and all Maldivian laws will apply unless specifically exempted.
The bill clarifies that foreign land ownership does not grant the right to Maldivian citizenship, the right to form political parties, or the right to participate in political activities. Furthermore, it ensures that the rights of investors will be legally protected even if the status of such a zone changes in the future.
Criteria for designating Real Estate Development Zones include the requirement that they be separate from inhabited islands. The master developer of such projects must commit to a minimum investment of USD 1 billion. If the project involves land reclamation, at least 70 percent of the area must be newly reclaimed land.
The bill grants those with "real property ownership" the full right to buy, sell, transfer, inherit, or gift the property. Secondary rights, such as leasing and mortgaging, would also be permitted. Additionally, the state cannot seize such property without the owner's consent except through a court order or by providing fair compensation as prescribed by law.
The bill also adds several definitions to Article 270 of the Constitution, including concepts such as freehold land ownership and long-term leasing.
"Real property ownership" is defined as the right of freehold ownership of land, buildings, or units within a designated Real Estate Development Zone, or the leasing of such property for any duration under an agreement.
While the reclamation of Rasmalé—Muizzu’s flagship housing project—remains incomplete, the decision to award 500 hectares of the site without a tender or acquisition fee has drawn heavy criticism from the opposition Maldivian Democratic Party (MDP) and People's National Front (PNF). Furthermore, many religious scholars have called on the government not to sell Rasmalé to Eagle Hills, citing the company’s chairman, Mohamed Alabbar, as a supporter of Israel.
Former Home Minister Imran Abdulla is leading a movement titled "Maldivian Land for Maldivians" to oppose the sale of Rasmalé.
As opposition intensified, the government initially denied plans to grant foreign land ownership. However, a statement released by Eagle Hills following the signing of the agreement in Dubai mentioned that property could be purchased for a "perpetual" 99-year term. This phrasing was later removed following public backlash.
The government now maintains that Rasmalé land is being leased for 99 years and that property can only be purchased by parties authorised by the state.
Following the signing of the Rasmalé project, the government sponsored a trip for journalists from Mihaaru to Egypt to showcase Alabbar’s Marassi project. It is understood that more journalists are scheduled to be taken to Dubai soon.
Prior to the official signing, Eagle Hills opened expressions of interest for villas and apartments in Rasmalé. The government claims that over 2,000 people have already expressed interest in purchasing property at the site.
