Housing Minister Dr. Abdulla Muththalib stated that properties developed under the "Maldives Waterfront and Marina" project in Rasmalé, in partnership with Dubai's Eagle Hills, can only be sold to parties approved by the Maldivian government.
In an exclusive interview with Mihaaru News regarding the largest foreign investment project in Maldivian history, Minister Muththalib clarified and detailed the concerns being raised over claims that Eagle Hills would be able to sell properties developed under the project to whomever they wish.
According to Minister Muththalib, this agreement does not involve the transfer of ownership or any freehold rights.
"No property in Rasmalé can be bought, sold, or transferred between individuals without government permission. When selling any property, it must be submitted to the government. Furthermore, the government retains the discretion to review the recipient of that property and decide whether or not to grant approval." he stated.
Furthermore, purchasing a property there will not grant any right to reside in the Maldives. Minister Muththalib noted that the Maldives Immigration Act will also apply fully when granting visas.
"Purchasing a property does not grant any right to enter or reside in the Maldives. A visa is a separate decision determined independently by the government upon review. Additionally, the government retains the discretion to withhold or cancel a visa at any time. The developer cannot have any say in deciding who receives a visa." he said.
As an example, he cited the existing ban on entering the Maldives with an Israeli passport.
Accordingly, Minister Muththalib stated that an Israeli individual would not have the opportunity to enter the Maldives even by purchasing property in Rasmalé.
"There will be no opportunity to do anything in Rasmalé outside of the principles currently practiced in the tourism industry either. All relevant laws, such as the Tourism Act and the Immigration Act, will apply fully to that location as well." he stated.
The Minister had also mentioned in a previously published LinkedIn article that a buyer of a property sold in the Rasmalé project will not obtain permanent residency permission in the Maldives, and if the government revokes someone's visa, that individual must depart from the Maldives.
Under this government's agreement with Eagle Hills, 5,000 housing units (approximately USD 500 million or MVR 7.7 billion) will be acquired by the state in advance before the physical works of the project commence.
The government has stated that all funds generated from selling properties in this project will be deposited into a state-controlled escrow account located in the Maldives, which will provide a major solution to the dollar shortage facing the country and greatly facilitate the central bank in strengthening official reserves.
It was also noted that no duty concessions or tax exemptions granted under the SEZ Act or Tourism Act have been provided in this agreement, making this an important decision structured to ensure the state fully receives TGST and other taxes.
These are units obtained by the state without taking out any loans or providing guarantees. Additionally, it has been estimated that 10 percent of the revenue generated from selling over 8,800 properties developed there will go directly to the government, and by the end of the 10-year development, USD 3 billion (MVR 47 billion) in land value will be acquired by the state.
