Adhaalath Party has called on the government to ensure that international real estate projects in the Maldives do not create long-term residential areas for foreigners, saying such developments could lead to religious and social divisions.

In a statement issued yesterday, the party said international real estate projects should instead focus on developing holiday homes for foreign buyers.

The statement did not name any specific project but came as the government seeks to introduce a Real Estate Business Act to facilitate the Maldives Waterfront and Marina project in Rasmale’.

The party said developments designed to create separate residential areas for foreigners could undermine religious unity, public interest, Maldivian culture and national security.

However, Adhaalath said international real estate projects that comply with Islamic principles could benefit the economy by diversifying economic activity and strengthening economic resilience.

The party said it met Housing Minister Dr Abdulla Muththalib in October to seek clarification on the project planned by UAE-based Eagle Hills.

The meeting was attended by party president Mohamed Shifan and senior party officials.

However, details of the meeting had not been provided.

The government has signed a commercial terms agreement with Eagle Hills for a major development covering 500 hectares, incorporating real estate and tourism facilities. The Housing Ministry has also shared details of the project with Adhaalath and other institutions that sought clarification.

The proposed Real Estate Business Bill aims to establish a regulatory authority to oversee real estate businesses, projects and transactions, while providing legal protection for funds paid by buyers of flats and land.

The government has said existing building regulations primarily cover condominium developments and that the proposed legislation would address the lack of a dedicated legal framework to protect buyers’ funds in the real estate market.