Nasheed on $20bn Rasmale’ project: Economic concentration in Male’ area will only exacerbate depopulation of islands

Concentrating all investments and economic opportunities in the Male’ area will only exacerbate the depopulation of islands in the atolls, warns former Maldivian president Mohamed Nasheed.

Nasheed, the chairperson of the main opposition Maldivian Democratic Party (MDP), told reporters on Wednesday that what he finds most alarming about the USD 20 billion waterfront and marina project in Rasmale’ is that the project was awarded without a transparent tendering process.

He noted that Maldivian laws prohibit some of the services provided to tourists at resorts from being provided at residential islands, and questioned whether the services can be provided at the international hotels and resorts and premium and branded residences planned for Rasmale’.

“I see the fact that this investment is in Male’ area as a concern. As you are aware, islands are already getting depopulated. And concentrating all economic developments or opportunities to this area will only exacerbate the depopulation of islands,” said Nasheed during a press briefing.

Nasheed said that despite his reservations regarding the specific project, he agrees with the benefits of foreign direct invest, and its contributions towards national prosperity.

On Monday, Abdu Dhabi-based 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.

According to the Maldives government, preliminary economic impact estimates indicate the project could attract more than USD 30 billion in gross foreign investment over its lifetime, including about USD 18 billion in net foreign investment in the Maldives.

It is also expected to create more than 54,000 direct and indirect jobs. At full maturity, the destination is expected to attract more than one million visitors annually and generate more than USD 2 billion in annual tourism revenue.