Eagle Hills will comply with changes to Maldives' 99-year land lease law, says Alabbar

Eagle Hills chairman Mohamed Alabbar has said the company will comply with any future changes to Maldivian laws governing land leases, amid concerns over plans to lease 500 hectares of land in Ras Malé to the UAE-based developer for 99 years.

Speaking to Dhauru on Thursday, Alabbar said Maldivian law currently permits land to be leased for 99 years and that Eagle Hills would respect any amendments to the legislation.

The proposed allocation of 500 hectares in Ras Malé to Eagle Hills for a 99-year period has drawn criticism from opposition parties and members of the public.

Asked about concerns surrounding the lease duration, Alabbar said 99-year leases were common in countries where Eagle Hills invests.

He said the government of each country determines what happens after a lease expires.

"If the lease period is 99 years, we will follow that. If it changes, we will follow that too," Alabbar said.

"Whatever government is in place will decide what happens afterwards. It will depend on what Parliament legislates and what the government decides. It may differ from country to country. We will proceed according to the laws of that country."

Alabbar also sought to explain the company's plans to develop Ras Malé as a destination for people seeking second homes.

He said the intention was to attract visitors who would spend time in the Maldives rather than relocate permanently.

"One thing I want to clarify to the public is that the Maldives is a second-home destination. Rather than making the Maldives their primary home, people want to come here, enjoy its beauty and relax. Everyone wants to visit the Maldives. They come for a week, return home and come back for another holiday," he said.

"We are developing facilities to further enhance that experience."

Under existing Maldivian law, land can be leased for up to 99 years.

Minister of Construction and Infrastructure Dr Abdulla Muththalib previously said buyers of properties developed in Ras Malé would not acquire ownership of the land. Instead, they would own the buildings or properties constructed on it.

Muththalib also said the sale or inheritance of such properties would be subject to government approval following the necessary checks.

He said approval for the sale of a property would be granted only after payment of the prescribed fee.

The minister rejected suggestions that properties could be inherited automatically, explaining that transfers would remain subject to regulatory requirements.

He compared the arrangements with foreign-owned resorts and businesses operating in the Maldives, where ownership interests can be sold, transferred or inherited subject to applicable laws.

Responding to these issues, Alabbar reiterated that Eagle Hills would comply with Maldivian legislation governing the development.

Attorney General Ahmed Usham has previously said the Ras Malé project would be implemented under a real estate law currently being drafted.

Questions have also been raised about whether foreign nationals purchasing properties in Ras Malé would qualify for residency in the Maldives.

Alabbar said no specific agreement had yet been reached on residency rights for property buyers.

"If Maldivian laws and regulations provide for granting residency to such individuals, that is what we will follow," he said.

"We are developing the Maldives as a second-home destination. However, if the law does not permit residency to be granted, that must be respected."

Muththalib previously clarified that purchasing property in Ras Malé would not automatically entitle buyers or their families to visas.

He said visas would be issued by Maldives Immigration under immigration legislation, and the authority would retain the power to revoke them.

The minister also said property ownership would not grant permanent residency in the Maldives. If a buyer's visa were cancelled, the individual would be required to leave the country.

The proposed Ras Malé development has prompted debate over the duration of land leases, foreign property ownership, inheritance rights and the residency status of overseas investors.