Solih calls for halt to Eagle Hills' Ras Malé project, citing lack of financial benefits

Former President Ibrahim Mohamed Solih has called for the government's proposed Ras Malé development project with UAE-based Eagle Hills to be halted in its current form, arguing that the agreement would provide no financial benefit to the Maldives while allowing the developer to profit from land reclaimed using public funds.

In a social media post on Thursday, Solih said the proposed arrangement would benefit Eagle Hills at the expense of the Maldives and warned that proceeding with the project as planned could create significant challenges for the country.

The government plans to allocate 500 hectares of land from the 1,100-hectare Ras Malé reclamation project to Eagle Hills for the development of a waterfront marina featuring luxury hotels and tourist villas.

The proposed arrangement has attracted criticism over the allocation of land without an upfront payment and questions surrounding Eagle Hills Chairman Mohamed Alabbar's alleged links with Israel.

Solih said a fair commercial transaction should benefit both parties, whether it involves the sale or purchase of property or a lease agreement.

However, he argued that the proposed allocation of 500 hectares of Ras Malé land to Eagle Hills did not meet that standard.

He claimed that the company would receive the land without payment, while the Maldives would not obtain the financial returns it should receive from the arrangement.

According to Solih, more than USD 700 million in public funds would be spent reclaiming the 500 hectares of land intended for Eagle Hills.

He questioned why land developed using public resources would then be handed over to the company without any payment to the state.

Solih also raised concerns about the 5,000 housing units Eagle Hills has proposed to develop as part of the project.

He claimed that the Maldivian government would be required to purchase those housing units rather than receive them without payment.

Solih said the proposed arrangement would allow Eagle Hills to benefit financially while leaving the Maldives without a corresponding return on its investment.

He warned that implementing the project under the current terms could create difficulties for the country in the future.

"In addition, I believe that proceeding with this project as currently planned could create numerous major challenges for the entire country in the future," Solih wrote.

"My appeal is to stop this project rather than proceed with it in its current form."

The former President's comments add to criticism of the government's proposed agreement with Eagle Hills, particularly over the financial terms of the land allocation and the potential long-term implications for the Maldives.