Parliamentary resolution seeking to halt Pearl Residence program, submission of related agreements

A resolution has been submitted to the Parliament calling to halt a government initiative, the ‘Maldives Pearl Residence’ program, which is alleged to grant permanent residency to foreign nationals, which also calls for all agreements related to the program to be submitted to Parliament within two weeks.

The resolution, submitted last Wednesday by opposition MDP’s South Hulhumale’ MP Dr. Ahmed Shamheed argues that the authority to grant residency permits to foreign nationals is a sovereign power directly connected to immigration, national security, taxation, state land, and public finance, while emphasizing these matters must be exercised under the direct oversight of Parliament.

The resolution noted that the ‘Maldives Pearl Residence’ program was not established through legislation enacted by Parliament. It further alleges that an agreement was signed with Henley & Partners in Singapore on July 1 of last year, the financial and legal terms of which have not been disclosed to the public.

According to the resolution, residential villas are already being marketed for sale under the Pearl Residence program. The document raises concerns that such projects could result in the creation of a ‘state within a state,’ thereby undermining the sovereign authority of the Maldivian state.

The resolution further notes that although the current administration assumed office on a pledge to safeguard national sovereignty, granting a private foreign company long-term authority over Maldivian lagoons and islands to market residency rights internationally contradicts the mandate entrusted to the government by the people during the 2023 presidential election. Furthermore, it states that Henley & Partners was identified by the United States in 2014 as a firm involved in illicit financial transactions and that the government has not disclosed the due diligence undertaken before selecting the company.

The resolution submitted by Dr. Shamheed calls for action on seven specific points, including: 

• Suspending the acceptance of applications and the issuance of permits under the Pearl Residence program until comprehensive legislation governing residency-by-investment is enacted.
• Submitting all agreements concluded with Henley & Partners, including details of all applicable fees, to Parliament within 14 days.
• Disclosing the process through which Henley & Partners was selected for the project.

Debate on the resolution commenced during Tuesday’s parliamentary sitting.

While members of the MDP parliamentary group have publicly opposed residency programs that permit long-term habitation, the party's Chairperson and former President Mohamed Nasheed has previously expressed support for residency programs or "township projects," stating that they present opportunities to develop new sectors within the tourism industry.

Additionally, a no-confidence motion previously submitted by MDP members against Economic Minister Mohamed Saeed alleged that he facilitated the introduction of township projects that transfer certain elements of state authority over designated areas to foreign entities while granting them substantial concessions. The motion further claimed that Minister Saeed proceeded with a residency-by-investment initiative titled "Maldives Pearl Residence" to enable foreigners to reside long term within these townships—a move that MDP members argue facilitates money laundering, tax evasion, and poses a threat to the sovereignty of the Maldives.