President Muizzu’s current administration’s plan to hand over 500 hectares of prime land at Ras Malé—reclaimed at an immense cost approaching USD 1 billion from state funds—to a foreign investor without levying any acquisition fee or land rent is a national shock. This is not merely a political issue. It is a dangerous venture that threatens to drag the sovereignty, religious values, and political independence of the Maldives into a deep abyss before citizens even realize what has occurred.
This project is unlike the past Velana International Airport deal with India’s GMR, where public protests eventually led the Maldivian state to pay compensation and buy back control. Signing this USD 20 billion agreement will tie the hands of Maldivians behind their backs, effectively turning citizens into subjects of foreign interests. This cannot be viewed simply as an economic misstep; there is strong reason to believe it constitutes a massive betrayal, sacrificing the nation's most valuable assets for political gain.
Reclaimed by Maldivians, Profited by Foreign Corporations
In Malé and Hulhumalé, land for residential living fetches an average of MVR 10,000 per square foot. Based on prevailing Malé land rates, the 500-hectare plot reclaimed with public funds carries an estimated market value of nearly USD 30 billion.
Even if such a monumental valuation cannot be realized immediately, the state should easily secure at least USD 5 billion in acquisition fees as "resource rent." Instead, President Muizzu’s administration is treating Ras Malé as if it were a resort island handed out for free—devoid of acquisition fees or ground rent. Once the investor constructs and operates the site, the state will be left with nothing more than standard taxes and routine fees.
Former President Solih’s Point: A Valid Argument Remains Valid
Former President Ibrahim Mohamed Solih may not appear to be the most fitting authority to preach on national sovereignty, given his administration’s relinquishment of a vast section of Maldivian territorial waters to Mauritius and the abandonment of the state’s historic claim over the Chagos Archipelago. Nevertheless, an argument that aligns with economic and commercial reality remains valid regardless of who utters it.
Regarding this project, former President Solih correctly pointed out that the foundation of any fair commercial deal is mutual benefit between seller and buyer, or landlord and tenant. Handing over 500 hectares of land—nearly three times the area of Malé—reclaimed at a cost of over USD 700 million (nearing USD 1 billion) of public money to Eagle Hills for "free" without an acquisition fee represents a catastrophic financial loss for the state.
Insights from Former Finance Minister Ibrahim Ameer
Former Finance Minister Ibrahim Ameer noted that while the MDP has always welcomed direct foreign investment, the critical issue here lies in execution. He accused the current administration of formulating unlawful agreements, withholding information from the public, creating loopholes for corruption, and subsequently attempting to alter legislation to cover its tracks. Even if there are minor discrepancies in Minister Ameer’s precise financial projections, the core premise holds: the agreement must be overhauled to safeguard the national interest.
Essential Contractual Reforms Required for Ras Malé
To correct the trajectory of the Ras Malé project, several key amendments must be made immediately:
Complete Transparency: The commercial terms of the agreement and land allocation policies must be made public and submitted to the People’s Majlis rather than kept hidden.
Statutory Moral Safeguards: Clauses prohibiting alcohol, pork, casinos, and activities contrary to Islamic principles should not rely solely on contract terms; they must be codified into law by the People’s Majlis.
Acquisition Fees and Resource Rent: In granting 500 hectares on a virtually permanent basis (rolling over every 99 years), the state must charge a fair acquisition fee alongside annual resource rent.
Restriction on Israeli Interests: Strong legal mechanisms must prevent Israeli citizens or entities with Zionist interests from purchasing land or property in Ras Malé.
Preservation of Sovereign Jurisdiction: Legislation must explicitly retain Ras Malé within the jurisdiction of Malé Atoll and under full state sovereignty, ensuring Maldivian police and military maintain complete legal authority.
Strategic Steps to Strengthen National Safeguards
Beyond contract terms, broad structural measures are required to protect the country's long-term future:
Domestic Utility Control: Utility services such as electricity, water, and sewerage should remain strictly under state enterprises like STELCO and MWSC, rather than being outsourced to foreign corporations as currently planned by President Muizzu’s government.
International Legal Counsel and SDF Deposits: To safeguard financial and legal interests in a multi-billion-dollar transaction, the government must retain top-tier international legal counsel. Furthermore, a fixed percentage of property revenues must be deposited in US Dollars directly into the Sovereign Development Fund (SDF) to service external debt and sukuk obligations.
Upfront Social Housing Allocation: The 5,000 social housing units pledged in Hulhumalé by the investor must be classified as a non-refundable, upfront "acquisition cost," rather than an expense deducted from state revenue.
Performance Bonds and Guarantees: A binding master timeline with clear financial penalties for delays must be enforced, alongside performance bonds allowing the state to repossess land in the event of default.
Ownership Transfer and Extension Limits: Upon completion of a 99-year term, land must revert to the state without automatic extensions, and third-party title transfers must require explicit government authorization.
Security and Religious Integrity: Permanent police and military posts must be established on-site. In alignment with the Constitution, legal and contractual provisions must strictly prohibit non-Islamic places of worship.
Empowering the Local Workforce: Maldivian contractors should be prioritized through sub-contracting frameworks. To prepare the workforce for the estimated 54,000 jobs generated, the state should expand technical training alongside a long-term demographic strategy aimed at expanding the national population to one million by 2050.
The Unanswered Question: Whose Pocket Received the Acquisition Fee?
Waiving an acquisition fee that should have yielded at least USD 1 billion raises an inescapable question: Has USD 1 billion slipped under the table into a political campaign fund for the 2028 presidential election of someone? It is unimaginable that the state would surrender such a massive public asset without funds being funneled elsewhere.
Conclusion: Public Funds Belong in the Sovereign Development Fund
Considering the approximately USD 1 billion spent on reclamation alongside administrative overhead, the state must collect a minimum of USD 1 billion in cash as an acquisition fee. Combined with the $500 million estimated value of the 5,000 housing units, total acquisition compensation should reach at least USD 1.5 billion.
This USD 1 billion cash acquisition fee belongs directly in the state's Sovereign Development Fund (SDF)—not under the table in any party's 2028 presidential campaign chest. As the debt burden on Maldivian citizens grows and the country faces economic vulnerability, sacrificing billions in public revenue to foreign investors and private political interests of some local politicians is something that the public should not accept. Unless this agreement is amended and the acquisition fees rightfully due to the state are deposited into the Sovereign Development Fund, this deal will stand as the greatest betrayal in Maldivian history.
