No Automatic Residency or Freehold Rights: Maldives Government Retains Absolute Veto Over Ras Malé Property Sales

Properties developed under the highly anticipated Maldives Waterfront and Marina project in Ras Malé will remain under strict state oversight, with the Maldivian government retaining the sole authority to approve or block all property sales.

In an exclusive interview with local news outlet Mihaaru, Housing and Infrastructure Minister Dr Abdulla Muththalib addressed public concerns regarding foreign ownership in the mega-development, which is being executed in collaboration with Dubai-based Eagle Hills. The project represents the largest foreign investment in Maldivian history.

Minister Muththalib clarified that the agreement does not involve any transfer of freehold rights or unrestricted land ownership.

No property in Ras Malé can be bought, sold, or transferred between parties without government permission. When selling any property, it must be submitted to the government. The government retains the discretion to review the acquiring party and decide whether or not to grant permission, Muththalib explained.

The Minister also emphasised that purchasing a property in the development will not act as a backdoor to Maldivian residency. All buyers will remain fully subject to national immigration laws. The developer will have no authority over visa issuance, and the government maintains the right to deny or revoke visas at its discretion.

To illustrate this, Muththalib referenced the Maldives' policy prohibiting entry to individuals traveling on Israeli passports. Under this framework, an Israeli citizen would be legally barred from entering the country or purchasing property in Ras Male’.

There will be no opportunity to act outside the framework currently practiced in the tourism industry in Ras Malé, Muththalib added. 

All relevant legislation, including the Tourism Act and Immigration Act, will apply fully there as well.

A High-Yield, Debt-Free Economic Boost

The financial structuring of the deal represents a major victory for the Maldivian state. Under the agreement negotiated by the current administration, the government will receive an upfront advance of 5,000 housing units—valued at approximately USD 500 million (MVR 7.7 billion)—before physical construction on the luxury waterfront project even begins.

Importantly, the state is securing these units without taking out any foreign loans or providing sovereign guarantees, shielding the country from additional debt.

To address the nation's ongoing foreign exchange challenges, all revenues generated from the sale of the properties will be deposited into a Maldives-based, government-controlled escrow account. This move is expected to inject substantial liquidity into the local banking system, easing the dollar shortage and helping the central bank strengthen its official reserves.

Additionally, the government has declined to grant any duty concessions or tax holidays under the Special Economic Zone (SEZ) Act or the Tourism Act. This ensures that the state will fully collect Tourism Goods and Services Tax (TGST) and all other applicable taxes from the development.

Over the project’s estimated 10-year development period, the state is projected to secure a direct 10 percent share of the revenue from the sale of over 8,800 properties. Total land value revenue for the state is projected to reach USD 3 billion (MVR 47 billion), marking a transformative economic milestone for the Maldives.