Minister: Eagle Hills’ $20bn project designed to resolve Maldives’ USD crunch

Finance Minister Hassan Zareer says the Abu Dhabi-based developer Eagle Hills’ USD 20 billion waterfront and marina project in Rasmale’ is designed to resolve the severe US dollar crunch facing the Maldives.

On Monday, Eagle Hills signed a commercial terms agreement for a mega project to develop a new integrated island destination in Rasmale’, including international hotels and resorts, premium and branded residences, a world-class marina, waterfront promenades, restaurants, shops, leisure and wellness centers.

The project is described by the Maldives government as one of the most ambitious development initiatives in the country’s history.

The new integrated island destination is being developed in Rasmale’, an urban area being reclaimed at

In an interview on PSM’s ‘Raajje Miadhu’ show on Monday evening, Zareer described the Maldives Waterfront and Marina as a key initiative that will revolutionize the country’s economy.

 He said that Eagle Hills has already opened the opportunity to submit expressions of interest to purchase the lease rights for the properties that will be developed under the project, adding that the revenue from the sale of lease rights will go into an escrow account opened in partnership with the government in a Maldivian bank.

“All revenue generated from this project from the point where lease rights are sold will be going into an escrow account. A Maldivian bank, with the Maldivian government and a bank that the government agrees to,” he said.

Zareer said that the Maldivian economy currently generates around USD 5 billion annually, most of which goes out of the country.

He noted that this is an issue that the central bank, the Maldives Monetary Authority (MMA) has repeatedly expressed concern over.

"Therefore, we put a lot of planning into preventing this from happening in this project. We ensured this. Therefore, as I said, the dollars will be escrowed and go into Maldivian banks, into the Maldivian economy. This project is designed to resolve the challenges Maldivians are currently facing in accessing dollars. This will therefore offer a huge relief,” he said.

Zareer said the project is expected to generate USD 30 billion for the Maldives from the sale of lease rights, and over USD 2 billion in tourism revenue annually.

“This will effect greater changes that we can even imagine. This project will effect revolutionary changes to the economy,” he said.

Housing Minister Dr. Abdulla Muthalib said on Monday that all payments by the project’s contractors and suppliers will be processed through accounts opened at licensed banks in the Maldives. He said that all transactions involving revenue from lease of the units will be processed through escrow accounts in the Maldives, opened under a real estate law that is currently in the drafting stage.

He added that Eagle Hills will not be offered any tax holiday or tax exemptions, and that all activities in Rasmale’ will be subject to tax under Maldivian laws.

Muthalib believes this will help retain the revenue generated from the project within the Maldivian banking system.

The Maldives government will take 10 percent of lease revenue from commercial properties developed under the project, as well as a four percent registration fee from all transactions carried out under the first and second phase of the initiative.

The Abu Dhabi-based company running the project was founded by Mohamed Alabbar, who also founded Emaar Properties, which developed the world’s tallest building, Burj Khalifa, as well as the Dubai Mall.