PNC member and Baarah MP Ibrahim Shujau stated today that projects under the Special Economic Zone (SEZ) framework, unlike the Faafu Atoll project, cannot be stopped due to opposition.
Speaking during a debate on the government’s proposed amendments to the SEZ Act, Shujau criticized opposition Maldivian Democratic Party (MDP), saying it had blocked the Faafu project during the PPM administration. “Projects with such enormous economic potential cannot be stopped anymore,” he said.
Shujau warned that the MDP would oppose the amendments once they “open a new economic door,” suggesting the opposition would create political uproar.
The Faafu project had been a major development initiative backed by the Saudi royal family but was halted after protests led by the MDP which had attempted to portray Maldives as an unfavorable environment for investment, he said.
“Once again, we are restarting such work,” Shujau said. “Our president is rebuilding the country, reducing dependence on tourism, establishing large economic zones, and increasing benefits for Maldivians. This will not be stopped by the MDP again.”
The MDP had alleged that the Faafu project was a guise to sell the atoll to Saudi investors. The resulting backlash led to the project’s cancellation. According to Shujau, the Maldives lost significant economic opportunities as a result. “If the project had gone ahead, we would have earned more in tax revenue from the zone alone than the total revenue we currently receive,” he said.
The government’s proposed amendments to the SEZ Act would allow residential townships to be established as special economic zones. The bill stipulates that investors must contribute at least USD 500 million to qualify.
Faafu Mega Project
Contrary to MDP claims, former President Abdullah Yameen insisted that the Faafu Atoll project was never about selling land. Instead, it aimed to bring a mega-development valued at USD 10 billion to the atoll. Speaking on 1 March 2017, Yameen described it as the largest development project ever planned in the Maldives and said it had the potential to elevate the island nation on the global stage.
“The project amounts to thousands of millions of dollars,” he said at the time. “One estimate during negotiations reached USD 10 billion.”
The project’s secrecy had prompted criticism from the opposition, who argued that details were insufficient. Yameen defended the approach, stating that project specifics could only be released after negotiations concluded.
Yameen also claimed that the development would bring “unimaginable” benefits not only to residents of Faafu Atoll but to all Maldivians.
Saudi King Salman bin Abdulaziz had been scheduled to visit the Maldives in March 2017, but the trip was postponed. Neither the king nor Crown Prince Mohammed bin Salman has visited since.
