Subscription Form

MALE’: A bill submitted to the People’s Majlis proposes prohibiting activities associated with religions other than Islam in integrated real estate zones, including Rasmale’, as part of a series of restrictions governing the development and operation of such areas.

The provision is included in Article 98 (b) of the proposed Real Estate Business Bill, submitted to Parliament by the government through Henvairu North MP Ahmed Aifan.

Under the article, a master developer managing an integrated real estate zone cannot allow people using services in the area to publicly display religious symbols of faiths other than Islam, hold religious celebrations or establish places of worship for other religions.

The proposed legislation also prohibits the import, sale and use of pork, products containing pork, alcohol and products made from alcohol in designated zones.

These restrictions are among several provisions outlined in the bill, which is intended to establish a legal framework for regulating the real estate sector in the Maldives.

Restrictions on foreign ownership and religious activities

Article 93 (b) prohibits the sale of leasehold rights to properties in an integrated real estate zone to Israeli nationals or legal entities directly or indirectly owned or controlled by Israeli nationals. It also prohibits the subleasing of land in such zones.

Article 89 (m) states that purchasing property in an integrated real estate zone does not grant the buyer any right to become a Maldivian citizen.

The bill also proposes limits on foreign ownership. Under Article 95 (a), land registered to nationals of a particular country, or legal entities owned or controlled by them, cannot exceed 25 percent of the total land in an integrated real estate zone.

Article 96 (a) states that security within these zones will be maintained by Maldivian security services in accordance with national laws and regulations.

New regulatory framework for real estate sector

The Real Estate Business Bill is the first legislation specifically designed to regulate and develop the real estate sector in the Maldives.

It proposes establishing a dedicated authority to oversee the industry, maintaining a register of land and property units sold as real estate, and introducing a licensing system for developers, brokers, agents and valuers.

The bill also seeks to provide legal protection for payments made by buyers purchasing units in buildings before construction is completed.

Under Article 78 (a), an area designated as an integrated real estate zone may be leased to a master developer for a maximum period of 99 years.

Article 81 (a) further provides that goods and services supplied by businesses operating within an integrated real estate zone will be treated as tourism sector goods and services for the purpose of taxation, with the applicable tourism tax rate imposed.

The bill also states that violations of its provisions may result in administrative action. Where an act constitutes a criminal offence under the Penal Code or another relevant law, the authority must refer the matter to the relevant law enforcement agency for investigation.