The Rasmale mega-project is expected to create new sources of revenue, employment and economic activity for the Maldives, according to Housing Minister Dr. Abdulla Muththalib, who has outlined the government’s expectations for the development being undertaken with UAE-based Eagle Hills.
The project, which is planned to transform reclaimed areas of Malé into a major waterfront and marina development, has attracted public discussion over its financial structure and the benefits it will provide to the country. Responding to concerns raised about the project, Muththalib said the government’s focus was on creating a long-term revenue stream rather than relying on a one-time payment.
According to the minister, tourism-related land rents generated MVR 1.88 billion in 2024 and MVR 2.07 billion last year. Tourism GST also brought approximately MVR 9.6 billion to the state in 2024, increasing to MVR 10.9 billion last year.
Muththalib said Rasmale would provide the government with several additional revenue streams. These include Tourism GST from hotels and businesses operating within the development, a 10 percent share of the master developer’s revenue, and a 4 percent charge on property transactions.
He also said proceeds from sales within the project would be held through an escrow account in the Maldives. According to Muththalib, this structure would help ensure that funds generated by the development circulate through the Maldivian financial system, while also providing the country with additional foreign-currency inflows.
More Than $11 Billion in Projected Government Revenue
One of the largest figures cited by the minister is the potential long-term revenue generated for the Maldivian government.
Once completed, Rasmale is projected to attract at least one million visitors annually. Muththalib said the government could receive more than $11 billion in revenue over the development period, while the wider project is expected to generate more than 54,000 jobs across the Maldivian economy.
The economic impact is expected to extend beyond direct employment within the development. Hotels, restaurants, retail outlets, schools, clinics, marinas and other businesses are expected to create additional employment and commercial activity in the Malé area.
Muththalib also said the project is being structured without direct government borrowing, sovereign guarantees or tax concessions, with the developer financing the construction.
Housing Among the Project’s Major Components
Housing is another major component of the development.
Under the agreement, Eagle Hills has committed to developing 5,000 three-bedroom apartments in Hulhumalé. Muththalib estimated that the development would require an investment of between $400 million and $500 million.
The minister said the housing component is being financed before the government receives revenue from the completed development. He explained that the arrangement involves the value of the land being exchanged for a 10 percent share of future revenue.
Muththalib said addressing the country’s housing shortage was one of the reasons the government sought to include a substantial housing component in the wider project.
He said the 500-hectare Rasmale development could ultimately provide housing for more than 150,000 people, while stressing that housing alone would not be sufficient without creating jobs and essential services in the same area.
Jobs and Services Closer to Home
The development is also expected to create employment opportunities closer to where people live.
Muththalib said jobs could emerge not only within hotels and the marina but also through schools, clinics, businesses and other services established within Rasmale.
He argued that this could allow Maldivians living in the Malé area to work closer to home rather than having to spend extended periods away from their families, as is common for many workers in the resort sector.
Government Retains Control Over Land, Visas and Regulation
The minister also addressed concerns surrounding foreign ownership and immigration.
According to Muththalib, no freehold ownership will be granted through the Rasmale development. He said the project would remain subject to Maldivian laws and regulations, just as other developments and resorts operating in the country.
He further stated that property purchases would only be available to parties approved under Maldivian law, while the government would retain full authority over the granting and cancellation of visas.
Muththalib said purchasing property in Rasmale would not automatically provide permanent residency or Maldivian citizenship, and that there would be no pathway for property ownership to be converted into either status.
Investment Designed to Generate Long-Term Economic Activity
Responding to criticism that a major development in Malé could be wasteful, Muththalib compared the proposed model with the long-term economic development experienced by cities such as Dubai and Singapore.
He argued that the objective is not simply to receive money when an agreement is signed, but to establish an economic ecosystem that generates revenue through tourism, businesses, employment, property transactions and taxation over many years.
The minister said the government expects Rasmale to provide the capital needed to develop a modern urban centre while increasing tax revenue and creating new opportunities for Maldivians.
He also highlighted the absence of direct government borrowing or sovereign guarantees as a key feature of the project’s financing structure.
Eagle Hills Chairman Mohamed Alabbar has previously highlighted the company’s experience in developing large-scale waterfront and urban projects. The company is expected to lead the development of Rasmale, which is planned as one of the largest foreign investment projects undertaken in the Maldives.
