Ras Malé project to generate $11 billion in state revenue over 10 years: Zareer
Zareer said the agreement does not provide tax concessions or duty exemptions to the developer.
Finance Minister Hassan Zareer has defended the government’s agreement with UAE-based Eagle Hills for the Maldives Waterfront and Marina project in Ras Malé, saying the development is projected to generate USD 11 billion in state revenue over 10 years.
The government signed a commercial terms agreement with Eagle Hills on 21 September for the Ras Malé development, which the government has described as a USD 20 billion investment programme. The agreement also includes the construction of 5,000 housing units, with work expected to begin next year.
The project has drawn criticism from opposition politicians, while the full agreement has not been made public. A constitutional case has also been filed at the Supreme Court challenging the agreement.
In a post on X on Wednesday night, Zareer said the government expects to receive more than USD 11 billion during the project's 10-year development period, equivalent to an average of about USD 1.1 billion a year.
He said the projected annual state revenue would exceed the combined annual government revenue generated by 179 resorts, 16 hotels, 920 guesthouses and 165 safari vessels.
According to Zareer, the state will receive revenue through the standard Tourism Goods and Services Tax (TGST), a 10 per cent share of the master developer’s revenue from initial property sales and leases, and a four per cent charge on property value from buyers on initial purchases and subsequent transfers.
Zareer said the agreement does not provide tax concessions or duty exemptions to the developer.
He also said the government would not take out loans or provide sovereign guarantees for the project. Proceeds from property sales will be deposited into an escrow account in the Maldives, while project-related funds will be channelled through Maldivian banks.
The project is planned to be developed in phases over 10 years and will include residential properties, hotels, resorts, a marina, retail outlets, offices, educational institutions and healthcare facilities.
Zareer said that once the development is completed, it is projected to attract one million visitors annually and generate USD 2 billion a year in tourism revenue.
He said the development would contribute to the tourism industry while expanding economic activity beyond the country’s existing tourism model.
The USD 11 billion state revenue figure and the projections for visitor numbers and tourism receipts are estimates based on the planned development and have not yet been realised. Detailed calculations underlying the USD 11 billion projection have not been publicly released.
The government has presented the development as a major source of foreign investment and state revenue. Critics have raised questions over the allocation of state land, the terms of the agreement and the lack of public disclosure of the full commercial arrangement.
