Muthalib’s assurance: ‘Seeking long-term development with models adopted by Dubai, Singapore’

Infrastructure Minister Dr. Abdulla Muththalib states the landmark USD 20 billion (MVR 308 billion) investment by Abu Dhabi-based developer Eagle Hills was secured by drawing on the long-term development models adopted by Dubai and Singapore.

The Maldivian government and Eagle Hills signed an agreement last Monday to undertake a landmark development project, including the establishment of a world-class marina in Ras Malé. The project will feature international hotels, luxury resorts, premium branded residences, waterfront promenades, a wide range of dining and retail facilities, as well as entertainment and wellness centers.

In a social media post regarding the project, Minister Muthalib explained that although the agreement does not provide for an immediate upfront payment to the government, it is expected to generate a significant and sustainable long-term revenue stream for the state. He noted that the government's primary tourism-related revenue currently comes from TGST rather than land rent or acquisition costs. As an example, he stated that the state collected MVR 1.88 billion in land rent in 2024, compared to MVR 9.6 billion in TGST.

The Minister said the Rasmalé development has been structured to maximize TGST revenue. Under the agreement, the government will also receive 10 percent of the master developer's revenue. In addition, a four percent fee will be imposed on every property sale within Ras Malé, with all proceeds from property transactions to be deposited into an escrow account based in the Maldives.

Minister Muthalib estimated that the project, which is expected to be completed within the next 10 years, could attract approximately one million tourists annually upon completion. He further projected that the development would generate USD 11 billion in total revenue for the state during its development phase and create approximately 54,000 jobs. He also emphasized that the project would proceed without government loans, sovereign guarantees, or tax exemptions.

Responding to recent criticism from former President Abdulla Yameen Abdul Gayoom, who called for housing development in Hulhumalé to be prioritized over the Ras Malé project, the Minister disclosed that Eagle Hills will also undertake the construction of 5,000 three-bedroom housing units in Hulhumalé. The USD 400 million to USD 500 million housing project will be financed by Eagle Hills, with the investment subsequently recovered from the government's share of revenue generated by the Ras Malé development.

The Minister also addressed former President Mohamed Nasheed's calls to halt large-scale projects, which he described as a waste of public funds. Muthalib argued that genuine wastage occurs when reclaimed land remains undeveloped for years without the necessary infrastructure. He maintained that the agreement ensures the availability of the capital required to establish essential services alongside the development.

Minister Muthalib stressed that without diversifying the economy and increasing state revenue, any future administration would face difficulties in managing debt and expenditure. He emphasized that a responsible government must introduce reforms aimed at generating additional revenue, expanding business opportunities, and creating well-paying employment opportunities for future generations.

Drawing comparisons with international development models, the Minister said the prosperity achieved by Dubai and Singapore was not built on initial signing bonuses, but on recurring annual revenue generated through investment, tourism, taxation, and employment. He said the Maldives has adopted elements of these successful models to support long-term, sustainable economic and social development.

Eagle Hills is a private real estate investment and development company specializing in large-scale, mixed-use destinations in high-growth markets. Its portfolio includes residential, hospitality, retail, and lifestyle developments across three continents and 20 countries, with a combined valuation exceeding USD 40 billion.

The ‘Maldives Waterfront and Marina’ project will be developed across 500 hectares of reclaimed land in Ras Malé. The government estimates that the project will generate more than USD 2 billion annually in tourism revenue for the Maldives.