Muththalib says Ras Malé property ownership won't include land

Buyers of properties developed under the Maldives Waterfront and Marina project in Ras Malé will not own the land on which the properties are built, Infrastructure, Housing and Urban Development Minister Dr Abdulla Muththalib said on Saturday.

Muththalib said ownership of the land would remain with the Maldivian state, while buyers would hold rights to the buildings or properties developed on it.

The minister made the comments amid criticism of the government's agreement with UAE-based Eagle Hills for the development of part of Ras Malé, with some critics raising concerns over whether the arrangement would amount to the transfer of Maldivian land to foreign parties.

Writing on X, Muththalib said a person purchasing a property under the development would own the property, but not the underlying land.

He said the government would retain authority over who may acquire properties and that transfers would be subject to government approval.

According to Muththalib, a property could be transferred to another person through a sale, subject to the required government approval and payment of the applicable fee. In the event of the owner's death, inheritance of the property would also be subject to the relevant government checks and approval.

He rejected claims that properties would automatically pass to heirs without government oversight.

Foreign-owned resorts and businesses operating in the Maldives are also assets that can be sold, transferred or inherited, he said.

Eagle Hills has said properties within the development will be offered through a long-term leasehold framework under Maldivian law, with terms of up to 99 years. According to the developer, each transfer, including through sale or inheritance, would begin a new leasehold term of up to 99 years.

The arrangement has attracted debate because Article 251 of the Constitution prohibits foreign ownership of Maldivian territory while permitting land to be leased to foreign parties for periods of up to 99 years.

Muththalib also said purchasing a property in Ras Malé would not automatically provide a visa to the buyer or members of their family.

Any visa would be issued by Maldives Immigration under existing immigration laws after the required checks, he said. Immigration would also retain the authority to cancel a visa.

The minister has previously said purchasing property under the development would not provide permanent residency in the Maldives. If a property owner's visa were cancelled, the person would be required to leave the country.

The commercial terms agreement between the government and Eagle Hills was signed in Dubai on 21 September for the Maldives Waterfront and Marina, a mixed-use development planned for Ras Malé. The project is expected to include hotels and resorts, branded residences, a marina, retail and dining outlets, as well as education, healthcare and community facilities.

About 500 hectares of Ras Malé has been designated for the development. The government has maintained that the land has not been sold and will remain under state ownership.

The overall value of the project has been presented differently in public statements. The Maldivian government has described the development as having a scale of about USD 20 billion, while Eagle Hills and some international reports have cited approximately USD 12 billion across its phases. The agreement signed this month establishes the principal commercial terms, with detailed terms to be developed as the project progresses.

As part of the wider arrangement, Eagle Hills is also expected to finance the construction of 5,000 three-bedroom housing units in Hulhumalé at an estimated cost of USD 400 million to USD 500 million. Muththalib has said the initial financing would be provided by the company, with the cost later recovered from the government's revenue share from the development.

The government has said the wider project is expected to attract foreign investment, create employment and generate additional tourism revenue. Muththalib said the Maldives needed projects capable of generating economic activity over several generations rather than developments focused on short-term returns.

He also linked the project to the country's economic independence.

“The Maldives becoming prosperous is not something those who want to exert influence over the country would want,” Muththalib said.