The Debate Over the Maldives’ Deal with Eagle Hills

The proposed Eagle Hills deal is a letter of intent between the Maldivian government and an Abu Dhabi-based developer. It concerns Ras Malé, an artificial island being reclaimed south of Malé. The project matters because it could shift Ras Malé away from its original purpose as an eco-city focused on easing the housing crisis.

Eagle Hills would develop resorts, commercial facilities, residential properties, and a waterfront and marina. The homes would be marketed to foreign buyers. The reported arrangement would give the company 500 hectares on a 99-year lease, without an acquisition fee or rent.

The agreement is not yet a final contract, and its full text has not been made public. The government presents the project as a major investment, but its projected value differs from Eagle Hills’ reported estimate. The deal has therefore prompted questions about land pricing, public oversight, foreign control, and housing for Maldivians.

The reported deal would give Eagle Hills 500 hectares of reclaimed land at Ras Malé. That is nearly half of the 1,009 hectares earmarked for reclamation. The scale matters because Ras Malé was initially designed to provide space for housing and other development in a country with very little dry land.

The land would be granted on a 99-year lease. Under the reported terms, Eagle Hills would not pay an acquisition fee or rent. It would instead develop resorts, commercial facilities, and residential properties, with the homes marketed to foreign buyers.

These figures come from reported terms, not a final binding contract. The exact agreement has not been published. That leaves important questions about the value of the land, the government’s eventual return, and how much reclaimed space would remain for Maldivian housing and other uses.

The government is promoting Eagle Hills as a large investment that could support the Maldives’ economy. The country depends heavily on tourism, so officials argue that a structured, world-class real estate sector could broaden its sources of income. The project is also presented as a flagship initiative by President Mohamed Muizzu.

Officials say the development could bring in much-needed dollars, create jobs, and generate government revenue. Infrastructure and Housing Minister Abdulla Muththalib projects that a 10 percent share of gross revenue could produce about $3.1 billion over ten years. The government also highlights the absence of government loans or sovereign guarantees.

The economic case remains difficult to assess. The government valued the project at $20 billion, while Eagle Hills reportedly envisaged $12 billion. Neither is a binding investment commitment, and the developer did not repeat the government’s projection of more than 54,000 jobs.

Using much of Ras Malé for resorts, commercial buildings, and homes sold to foreign buyers could reduce the space available for Maldivian housing. That matters because Ras Malé was originally conceived as an eco-city meant to ease the Maldives’ housing crisis. Its primary intended beneficiaries were Maldivians.

The reported terms would give Eagle Hills 500 of the 1,009 hectares planned for reclamation. Only the remainder would be left for other development, including housing. As partial compensation, Eagle Hills has offered to finance 5,000 housing units in nearby Hulhumalé.

Those units would not simply be a free replacement. Their cost would be recovered from the government’s share of project revenue. Because the agreement is not public and the revenue projections are uncertain, it remains unclear how fully the promised housing would offset the land allocated to foreign-oriented development.

Critics are concerned because Article 251 of the Maldivian constitution prohibits foreign ownership and limits leases to non-citizens to 99 years. They fear the proposed arrangement could preserve foreign control beyond that constitutional limit, even if the state formally remains the landowner.

Eagle Hills’ original announcement said a fresh 99-year lease would begin whenever a property changed hands. That mechanism could repeatedly restart the lease period for each new buyer. Critics argue that this would effectively allow foreigners to retain control of the land indefinitely, rather than ending their rights after one 99-year term.

The company later revised its wording. The government says the land would remain state-owned and every transfer would require approval. It also says buying property would not automatically provide residency, although Eagle Hills’ sales website advertises a renewable residency visa. The final legal terms remain unpublished.

Competitive bidding would have allowed other developers to submit offers for Ras Malé. The government could then compare proposed investments, public revenue, housing commitments, lease terms, and protections for Maldivian interests. That process would make it easier to judge whether Eagle Hills offered unusually strong value.

An independent valuation could estimate what 500 hectares of reclaimed land was worth. Officials could compare that figure with Eagle Hills’ proposed revenue share and with the hundreds of millions already spent reclaiming Ras Malé. Publishing the valuation and the full agreement would also let the public examine the deal’s risks and benefits.

The project was not put out to competitive tender, and no independent land valuation has been made public. The government instead points to a 10 percent gross-revenue share. Without comparable bids or an independent benchmark, the fairness of the reported terms remains difficult to assess.

Land reclamation is the creation of usable land from water, usually by filling a lagoon or other shallow area. Ras Malé is being formed this way from the Fushi Dhiggaru lagoon, south of Malé. The result is an artificial island that can support buildings, infrastructure, and housing.

Reclamation is especially important in the Maldives because dry land makes up less than 1 percent of the country’s territory. That severe shortage makes every newly created hectare valuable. Ras Malé was originally proposed as an eco-city that could ease pressure on existing communities and help address the housing crisis.

The Eagle Hills proposal would allocate 500 of the 1,009 planned reclaimed hectares to one developer. That decision matters because reclaimed land is limited and costly. The article notes that hundreds of millions of dollars have already been spent reclaiming Ras Malé, intensifying questions about how the land should be used and valued.