Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib has said that projected returns, infrastructure and municipal service costs and market realities were overlooked in criticism of the proposed Eagle Hills project in Rasmale', published in a report on Dhauru news.
Minister Muththalib shared a post on LinkedIn where he responded to criticisms of the Rasmale' project published on local news website Dhauru. In the post, Muththalib argued that criticism of the project presented on the said article relies on an unrealistic valuation of the land.
The minister responded to claims that 500 hectares of reclaimed land in Rasmale' included in the agreement with Eagle Hills is worth USD 24 billion, and that the State would not recover its value through the partnership.
According to Muththalib, the valuation quoted on Dhauru was derived by applying Hulhumale's current average land price uniformly to all 500 hectares of newly reclaimed land in Rasmale'. He argued that the comparison fails to take into account that Hulhumale's current value was built over more than two decades through extensive public investment in roads, utilities, housing, schools, healthcare and transport links.
Muththalib stressed that Rasmale' lacks the infrastructure and economic activity that support property values in Hulhumale'. He also pointed to Thilafushi as a fairer benchmark, noting that industrial plots there have been sold at significantly lower prices despite existing businesses and a bridge connection to the capital under development.
The minister went on to argue that only a portion of land in a planned city can be sold for residential, commercial and industrial purposes, with large areas needing to be reserved for roads, utilities, public facilities, green spaces and recreation. Based on land-use patterns in Hulhumale', he estimates that less than half of Rasmale's 500 hectares could ultimately be allocated for sale as private plots.
Minister Muththalib states that providing the necessary infrastructure for municipal and other essential services in the development would cost approximately USD 1 billion upfront. He referred to the difficulties faced in financing this in other reclaimed islands, including Gulhifalhu, as evidence of the challenges associated with developing such projects directly by the State.
The LinkedIn post went on to argue that even under optimistic assumptions, State revenues from independently developing and selling the land would be lower than projected revenue under the Eagle Hills agreement. Muththalib said that the arrangement is expected to generate approximately USD 3.1 billion through a 10 percent revenue sharing mechanism, in addition to revenue from a 4 percent fee on property transfers (USD 1.24 billion) and other taxes generated by economic activity.
He also disputed assumptions that all land could be sold quickly at today's prices, saying demand would depend on the availability of jobs, services, connectivity and broader economic activity. He noted that Hulhumale' took decades to develop even despite its proximity to Male' and Velana International Airport.
Muththalib also addressed claims that the Eagle Hills agreement is akin to selling off land. He asserted that land ownership would remain with the State under a leasehold system. He added that government approval would be required for future transfers and that the State would continue receiving fees whenever properties change hands.
The minister also highlighted projections cited in the project's economic impact assessment, including USD 22 billion in net foreign direct investment, more than 60,000 direct and indirect employment opportunities, and over USD 2 billion in annual tourism revenue once the project reaches maturity, through attracting about a million visitors per annum. He added that the developer has committed to funding 5,000 housing units in Hulhumale' for Maldivians before the Rasmale' project implementation begins.
Muththalib stated that public scrutiny of the project is welcome, but argued that assessments should consider infrastructure costs, financing requirements, market demand and the time needed to transform reclaimed land into a functioning city. He maintained that the agreement should be judged on its ability to generate jobs, investment, housing and long-term revenue for the State and the Maldivian people.
