Maldives cancels land compensation pacts with foreign companies

President Dr Mohamed Muizzu has announced that all land previously granted to foreign companies as compensation for dredging works under various projects has been revoked by the government.

Speaking at a press conference held on Saturday, the President said that although significant housing and infrastructure projects had been undertaken in the past, associated land allocations made as compensation to companies had now been reversed.

“There is no longer any land being provided as compensation under previous government decisions. All such land has been taken back by the government,” President Muizzu stated.

He cited the dredging projects at Giraavarufalhu lagoon and the Hulhumalé Phase 3 development as examples, where land was offered in exchange for work being carried out in Thilafushi and other locations. He said those agreements have now been terminated.

According to the President, future projects will be undertaken through direct contracting rather than land compensation.

“The government will engage contractors to carry out the work. There will be no need to provide land in exchange,” he added.

This policy change, the President said, reflects a shift in approach to project execution and land management under the current administration.