Rasmalé Project to Generate Long-Term State Revenue: Minister

Infrastructure, Housing and Urban Development Minister Dr Abdulla Muththalib says the Rasmalé development has been structured to generate long-term revenue for the State, rather than a one-off payment.

The Minister made the remarks following Monday’s signing of the Commercial Terms Agreement between the government and Eagle Hills for the Maldives Waterfront and Marina project.

He said the State will earn revenue through Tourism GST, a share of the master developer’s revenue and property transaction charges.

Under the arrangement, the State is expected to receive 10 percent of the master developer’s revenue and a four percent charge on property transactions.

The Minister said the project is projected to generate more than USD 11 billion in revenue for the State over its development period.

The project is also expected to create more than 54,000 direct and indirect jobs and attract more than one million visitors annually once fully developed.

The planned development will include hotels and resorts, premium residences, a marina, retail and dining outlets, entertainment and wellness facilities, as well as education, healthcare and community infrastructure.

5,000 Homes Planned

The Minister said the agreement also includes the construction of 5,000 three-bedroom homes for Maldivian families in Hulhumalé.

The housing component is expected to cost between USD 400 million and USD 500 million.

He said Eagle Hills will fund the construction upfront, with the cost later deducted from the government’s revenue share from the Rasmalé project.

Around 500 hectares of Rasmalé is also planned for local residential development.

Jobs Closer to Malé

The Minister said the development could create employment opportunities closer to where people live.

Rasmalé is approximately 17 minutes from Malé by speedboat, he said.

He said combining residential, tourism and commercial activity would create jobs across hospitality, retail, marine services, healthcare, education and construction.

Properties to Remain Leasehold

The Minister reiterated that the project will not involve the sale of Maldivian land under freehold ownership.

Properties will instead be offered through leasehold arrangements of up to 99 years under Maldivian law.

He said property ownership would not provide a pathway to permanent residency or citizenship.

The Minister said the project is being structured without government borrowing, sovereign guarantees or tax concessions.

The Commercial Terms Agreement establishes the principal commercial framework for the project, while detailed arrangements and the full development timetable are yet to be finalised.