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Finance Minister Hassan Zareer - Photo: Finance Ministry

MALE : Minister of Finance and Public Enterprises Hassan Zareer stated that the government will take no foreign loans and provide no sovereign guarantees for the Ras Malé Waterfront and Marina development project.

Writing on social media platform X, the Finance Minister highlighted that the financial structure of the agreement ensures the state generates direct revenue without creating financial liabilities.

Outlining the project’s debt-free framework, Minister Hassan Zareer wrote: “The Government will take no loan and provide no sovereign guarantee for the development, ensuring that the project contributes to public revenue without creating these financial obligations for the State.”

The Finance Minister’s statements come as the project encounters fierce political backlash and legal scrutiny.

Former lawmaker and legal expert Ali Hussain recently submitted a petition to the Supreme Court seeking to invalidate the commercial agreement signed with UAE developer Eagle Hills, arguing that leasing 500 hectares of land for 99 years without statutory authority or competitive bidding violates Articles 250 and 251 of the Constitution.

The main opposition party MDP and key political figures have criticized the administration for leasing public assets to a foreign company without open competitive bidding. Critics and financial experts argue that leasing prime state land for 99 years effectively surrenders national assets, with former President Abdulla Yameen and former President Mohamed Nasheed urging the government to halt the project in favor of developing existing housing infrastructure in Hulhumalé.

In response to these concerns, government officials maintain that the development will bring unprecedented foreign capital into the country.

Minister Zareer also revealed that the project is expected to generate over $11 billion in state revenue throughout its 10-year development phase, averaging about $1.1 billion annually. He noted that this yearly contribution would surpass the combined total annual revenue generated by 179 resorts, 16 hotels, 920 guesthouses, and 165 safari vessels currently operating across the country.

According to the agreement, state revenue will be collected through standard Tourism Goods and Services Tax (TGST), a 10 percent share from the developer’s initial sales and leases, and a 4 percent payment on property value from buyers on first purchases and subsequent property transfers. Additionally, all sales funds must be held in an escrow account within the country, with all project money flowing through Maldivian banks.