President: Foreign investments will boost Maldives’ reserves, help resolve USD crunch

President Dr. Mohamed Muizzu says that foreign investments such as large real estate developments will boost the Maldives’ reserves and help resolve the country’s US dollar crunch.

He made the remarks during a press conference on Monday during which he spoke in depth about a proposed bill by his administration to introduce real estate laws in the country.

Responding to questions regarding the Maldives’ economic situation, President Muizzu said his administration was engaged in multiple efforts to resolve the dollar crisis.

He said that foreign investments, including investments in real estate, was expected to go a long way towards resolving the shortage.

He said that such projects will ease the pressure on the parallel market, and produce tangible results.

“For the foreign currency issue, bringing in such investments to the Maldives and realizing such investments will be greatly beneficial,” he said.

The real estate bill is designed to pave the path for a USD 20 billion waterfront and marina project that Abu Dhabi-based real estate giant Eagle Hills plans to run in Rasmale’.

On September 21, Eagle Hills signed a commercial terms agreement or letter of intent 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.

Eagle Hills is set to receive 500 hectors of land for 99 years from Rasmale’ for the development - 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.

However, the main opposition Maldivian Democratic Party (MDP) has expressed concerns over the project, demanding the government to publicly disclose all details of its agreement with Eagle Hills.