- Finance Minister Zareer projects the USD 20 billion Rasmale' development will generate USD 11 billion in state revenue over 10 years, averaging USD 1.1 billion annually.
- The government will collect TGST, 10 per cent of developer revenue from first sales, and a 4 per cent property fee, with no tax concessions, loans, or sovereign guarantees.
- The agreement faces a Supreme Court constitutional challenge arguing no law permits leasing state land to a foreign party for 99 years, though President Muizzu and the AG defend it.
Taxes and property transactions from the proposed Rasmale’ Waterfront and Marina development are expected to generate USD 11 billion for the state over 10 years, according to Finance Minister Hassan Zareer.
The forecast places the USD 20 billion project among the government’s largest prospective revenue sources. The government signed an agreement with Abu Dhabi-based developer Eagle Hills on 21 September to undertake the development.
In social media posts outlining the financial terms, Minister Zareer said projected state revenue would average USD 1.1 billion annually. He said this would exceed the combined annual revenue the state receives from 179 resorts, 16 hotels, 920 guesthouses and 165 safari vessels.
According to Minister Zareer, the government will collect tourism goods and services tax (TGST) at standard rates, alongside 10 per cent of the master developer’s revenue from first sales and leases. A fee equivalent to 4 per cent of property value will also apply to initial purchases and subsequent transfers.
Minister Zareer said the agreement offers no tax concessions or duty exemptions. He also said the government would neither take out loans nor issue sovereign guarantees for the project.
The arrangements would require all property sale proceeds to be deposited into an escrow account in the Maldives, with disbursements governed by the agreement. Minister Zareer said all project funds would pass through Maldivian banks.
The 500-hectare development is planned in phases over a decade, combining homes, hotels, resorts and a marina with shops, offices, education and healthcare facilities. Minister Zareer said that once fully developed, it was expected to attract more than one million visitors annually and generate USD 2 billion in tourism revenue.
The revenue projections come as the agreement faces a constitutional challenge in the Supreme Court. The case seeks its annulment, arguing that Article 250 requires the lease or disposal of state property to take place under a legal framework. It also contends that no existing law permits state land to be allocated to a foreign party for 99 years.
President Dr Mohamed Muizzu has defended the project, saying it would benefit the public and significantly increase GDP without harming the Maldives. Attorney General Ahmed Usham has also said the government would not act contrary to the Constitution or the law.
