The Government of Maldives has signed a commercial terms agreement with Abu Dhabi-based Eagle Hills for the development of the Maldives Waterfront and Marina in Ras Malé, establishing the framework for one of the country’s largest proposed foreign investment projects.
The agreement was signed in Abu Dhabi on Monday by Infrastructure, Housing and Urban Development Minister Dr Abdulla Muththalib and Eagle Hills Chairman Mohamed Alabbar.
Eagle Hills’ official announcement describes the overall development scale as approximately US$12 billion across multiple phases, while the Maldivian government has described the agreement as a US$20 billion investment programme. The two figures have therefore been reported differently by the parties and should not be treated as the same confirmed investment amount.
The agreement itself sets out the shared vision and principal commercial terms of the development, with more detailed terms to be developed as the project progresses. A detailed construction timetable and complete financing structure have not yet been publicly disclosed.
The Maldives Waterfront and Marina is planned for Ras Malé, the new urban area being developed at Fushi Dhiggaru Falhu, approximately 17 minutes from Malé by speedboat.
The development is planned to include international hotels and resorts, premium and branded residences, a marina, waterfront promenades, restaurants, retail outlets, entertainment and wellness facilities, as well as education, healthcare and community facilities.
Properties within the development are planned to be offered through a long-term leasehold framework under Maldivian law, with terms of up to 99 years. Eagle Hills says that upon a transfer through sale or inheritance, a new leasehold term of up to 99 years would commence.
The project is planned to be developed on reclaimed land, and Eagle Hills says it will undertake no further dredging for the development. The company has also said independent marine monitoring will accompany construction as the project progresses.
As part of the wider agreement, Eagle Hills has also committed to developing 5,000 housing units in Hulhumalé.
According to Minister Muththalib, the housing units will be developed through a contractor-financing arrangement, with Eagle Hills initially bearing the development cost. The government has said it will not provide a sovereign guarantee for the housing component.
The government has also stated that the additional housing project will not reduce the number of social-housing flats or land plots previously announced for Ras Malé.
The government says the wider project will proceed without tax holidays or tax exemptions, with activities subject to Maldivian law. It has also said that the State will retain ownership of the land, with investors receiving leasehold rights.
Under the terms described by the government, the State is expected to receive 10 percent of revenue from the sale of commercially developed properties, while a four percent registration fee will be collected from real-estate transactions during the first and second phases.
However, several of the project’s most significant economic figures are projections rather than money already invested or revenue already generated.
Preliminary estimates cited by Eagle Hills indicate that the development could attract more than US$30 billion in gross foreign investment over its lifetime, including approximately US$18 billion in net foreign investment into the Maldives.
The project is also projected to create more than 54,000 direct and indirect employment opportunities.
At full maturity, the destination is projected to attract more than one million visitors annually and generate more than US$2 billion in annual tourism revenue.
The government has separately estimated that the development could generate more than US$11 billion in revenue for the State over its lifetime. This figure is likewise a projection rather than revenue currently received by the government.
The wider Ras Malé development is itself much larger than the Eagle Hills project. The broader masterplan covers more than 1,100 hectares and envisages approximately 65,000 housing units.
Eagle Hills is an Abu Dhabi-based private real-estate investment and development company chaired by Mohamed Alabbar, who also founded Emaar Properties. The company has developed major mixed-use and waterfront projects internationally, including developments in the UAE, Serbia and other markets.
For the Maldives, the agreement establishes a major proposed new waterfront development combining tourism, residential property, real estate and commercial activity. However, the project’s final investment structure, construction schedule, financing arrangements and detailed phases remain to be established as the development progresses.
