Minister of Infrastructure, Housing and Urban Development Dr Abdulla Muththalib has confirmed that there will be no tax concessions granted for the USD 20 billion dollar investment project with UAE's Eagle Hills.
The government of Maldives has signed a USD 20 billion agreement with Eagle Hills to develop and operate a world class waterfront marina and real estate project in Rasmale'.
The commercial terms agreement for the USD 20 billion investment was signed today in a ceremony held in Abu Dhabi.
The agreement was signed by Minister of Infrastructure, Housing and Urban Development Dr Abdulla Muththalib and Eagles Hills Chairman Mohamed Alabbar.
"This project has been agreed to be carried out without any tax holiday or tax exemptions. All activities in Rasmale' will be taxed in line with Maldivian laws," Muththalib stated.
Further, transactions to pay suppliers and contractors will be conducted through accounts opened at licensed banks in Maldives. Financial transactions for sale of units will be conducted through escrow accounts in Maldives, under the new Real Estate Act to be proposed.
Muththalib stated that this process will ensure the project funds are circulated through the Maldives' banking system.
The government will receive 10 percent of revenues from sale of commercially developed properties. The government will also receive a 4 percent registration fee from all real estate transactions in the first and second phase. Along with tax revenue, the project is expected to bring in over USD 11 billion in total revenue to the State budget.
The State will retain ownership of the land, with only a leasehold concession extended. Minister Muththalib noted that this can be done within the boundaries of the existing laws, without any amendments needed to be brought to the Constitution.
Eagle Hills is a private real estate investment and development company with a 45 hotel portfolio which has invested in over 18 countries.
Eagle Hills develops mixed-use and lifestyle destinations across the UAE and international markets with a focus on quality and luxury.
Major global real estate developer Emaar Properties, which is internationally renowned for the Burj Khalifa and Dubai Mall, will also be part of this project.
The proposed Maldives Waterfront and Marina will come with hotels, resorts, premium residences, branded residences, marina experiences, waterfront promenades, dining, retail, wellness and entertainment features, a joint statement details.
The development is designed to bring together education, healthcare, community infrastructure and high-quality public spaces, building an integrated environment combining tourism, residential life and year-around economic activity, it states.
Properties at the Maldives Waterfront and Marina are offered through a long-term leasehold framework in line with Maldivian law, with terms of up to 99 years. With each transfer, either through sale or inheritance, a new leasehold term of up to 99 years will commence, assuring lasting continuity and legal and financial security for owners across generations, the government explains.
The project will be located at the 500 hectares of currently reclaimed land on Rasmale'. The Housing Ministry assured that this project will in no way affect the pledged flats and land plots from Rasmale' to Maldivians.
