Usham: Ras Malé project to proceed under proposed real estate law
Usham said only a letter of intent, described as a commercial terms agreement, has so far been signed in relation to the Ras Malé development.
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Attorney General Ahmed Usham has responded to former President Abdulla Yameen Abdul Gayoom’s criticism of the proposed 99-year leasehold arrangements for the Ras Malé development, saying the project will not be governed by the provisions of the Tourism Act relating to resort leases.
Yameen has criticised the government’s agreement with UAE-based developer Eagle Hills for the Maldives Waterfront and Marina project in Ras Malé, describing a 99-year lease as effectively a permanent sale of the land.
The government and Eagle Hills signed a commercial terms agreement for the development on 21 September. Eagle Hills has said properties within the development are planned to be offered under a leasehold framework of up to 99 years, with leasehold interests transferable and inheritable subject to government approval and registration.
The full commercial terms agreement has not been made public. The government has maintained that the land has not been sold and that ownership will remain with Maldivians.
Responding to the proposed arrangement, Yameen argued that granting land for 99 years was, in practical terms, equivalent to selling it permanently.
“Even by the time we reach the generation of our children’s children’s grandchildren, the 99 years will not have expired,” Yameen said. “Even if it is leased for 99 years, it is being sold. It is effectively a permanent sale.”
Yameen also questioned who would be in a position to review the arrangement when the 99-year period expires.
Usham responded to Yameen in a post on X on Tuesday, noting that the law allowing resort lease periods to be extended to 99 years was introduced during Yameen’s presidency.
“President Yameen may have forgotten today. However, it was during President Yameen’s administration that the period for which resorts could be leased was changed to 99 years,” Usham said.
Usham outlined changes made to the Maldives’ tourism legislation over the years. He said the Tourism Act introduced in 1999 initially allowed resorts to be leased for a maximum of 25 years. The period was increased to 50 years in 2010 during former President Mohamed Nasheed’s administration, before being extended to 99 years in 2015 under Yameen.
However, Usham said the planned Ras Malé development differs from resort leases under the Tourism Act.
According to Usham, the Ras Malé project will be governed by real estate legislation currently being drafted.
He also said that under Section 8 of the Tourism Act, when a resort’s lease expires, the government is required to compensate the investor for the value of investments made on the island after accounting for depreciation.
“In contrast, the project planned for Ras Malé will be governed under the real estate law that is currently being drafted,” Usham said.
Usham said only a letter of intent, described as a commercial terms agreement, has so far been signed in relation to the Ras Malé development.
Eagle Hills has similarly described the document as setting out the shared vision and principal commercial terms, with detailed terms to be developed as the project progresses.
Usham said further negotiations would take place based on those terms before definitive agreements are signed. He added that legislation required for the project would also have to be passed by Parliament before the development proceeds.
“The government will not do anything in implementing this project that is contrary to the Constitution or the laws of the Maldives,” Usham said.
The Maldives Waterfront and Marina is planned as an integrated development comprising hotels and resorts, residences, a marina, retail, dining, entertainment, wellness, education, healthcare and community facilities. Eagle Hills has described the project as a multi-phase development in Ras Malé.
