The Government has released a statement detailing the proposed Eagle Hills investment in Ras Malé, covering the scope of development, revenue arrangements and restrictions on land ownership.

The “Maldives Waterfront and Marina” is a mixed-use waterfront development on some 500 hectares of reclaimed land at Ras Malé, and according to the Ministry of Infrastructure, Housing and Urban Development, Eagle Hills will be the master developer of the project.

The project is expected to involve some USD 20 billion in development investment and generate more than USD 30 billion of gross foreign direct investment over the development period, the Government said.

The development will include residential properties, hotels and resorts, a marina, retail outlets, offices and social infrastructure including education, healthcare and community facilities. The project is expected to be developed in stages and to reach maturity in about 10 years.

The rest of Ras Malé (about 500 hectares) will remain zoned for local housing development, with the Government projecting a capacity of over 150,000 residents.

The deal is also expected to see Eagle Hills fund and build 5,000 three-bedroom housing units in Hulhumale at a cost of USD 500 million, or about MVR 7.7 billion.

The Government says that the housing component will be given as an advance payment against the Government's 10 per cent share of the developer's sales revenue and will not require Government borrowing or a sovereign guaranty.

The commercial arrangement expects the State to earn TGST from taxable activities within the development, 10 percent of the master developer’s revenue from first sales and leases and a payment equivalent to four percent of the property value from buyers on the first sale and subsequent transfers.

By maturity, the Government expects the development to attract more than a million visitors each year, generate some USD 2 billion in annual tourism revenue for the economy and support more than 54,000 jobs. It also estimates more than $11 billion in State revenue during the project development period.

The Ministry also said that proceeds from the sale of properties will be kept in escrow in the Maldives and that project funds will go through Maldivian banks.

The Government has also pointed out that the agreement does not permit Eagle Hills freehold ownership of Maldivian land. Instead, land in the development will be leased for up to 99 years.

For property transfers, the Ministry said Government approval is required, cancelation of the existing lease and issue of a new lease, with a fee equivalent to four percent of the property’s value.

The Government also states that the project offers no automatic pathway to permanent residency or Maldivian citizenship for property purchasers and that Maldivian law and immigration requirements will be in force throughout the development.

The Ministry's figures are projections assuming the project reaches its planned scale and maturity.