Maldives resort tycoon Siyam seeks sovereign guarantee to build mega resort

Businessman Ahmed Siyam Mohammed has applied for a government sovereign guarantee to secure a loan for the development of a resort in the capital Male Atoll.

On April 7, Chairman and Managing Director of Emerald Lagoon, Siyam wrote a letter to President Mohammed Muizzu seeking a sovereign guarantee to finance the development of a resort in the area allotted to his company named Emerald Resorts Private Limited.

Atoll Times has received a copy of the letter.

In the letter, Siyam said he had been trying to secure financing for the resort development at Emerald Lagoon for years and that the project, which would have more than 1,500 rooms, required USD 165 million (MVR 2 billion).

Referring to the government's policy for sovereign guarantee to private parties, about how loans taken at less than 4% interest can be guaranteed by the states sovereign guarantee, Siyam wrote:

The letter noted that the then government had considered issuing a sovereign guarantee to raise the funds needed to implement the project, via a letter sent in January 2018, which was also attached with Siyam’s letter.

When asked about the letter, the Minister of Finance, Dr Mohammed Shafeeg told Atoll Times on Tuesday that under the current rules for issuing sovereign guarantees, private individuals can apply for them but the government will issue guarantees to those who meet requirements.

“No proposal has been received yet for sovereign guarantee under this rule,” he said.

In 2017, the government gave Siyam a sovereign guarantee for a USD 127 million loan taken from China's Exim Bank to build a resort called 'Siyam World'.

Siyam has now repaid the loan despite difficulties during the pandemic.