President Dr Mohamed Muizzu has described the relocation of the Malé Commercial Harbour to Thilafushi as a major step towards expanding the Maldives’ economic capacity, while the government says the planned Rasmalé development could bring unprecedented levels of foreign investment and new revenue opportunities.
Speaking to the media after inspecting the ongoing harbour development at Thilafushi, President Muizzu said the existing commercial port is no longer sufficient to support the pace of economic growth and the scale of major development projects planned for the country.
“The commercial port currently in the Maldives is no longer adequate for the pace at which the Maldivian economy is growing. Especially as major development projects come to the Maldives in such a short period, this is a crucial project to facilitate that growth. So we are expanding and developing a modernised port,” the President said.
Accompanied by Minister of Economic Development, Transport and Trade Mohamed Saeed, Cabinet Ministers, Maldives Ports Limited CEO Hussain Shafeeq and representatives of the Chinese company carrying out the project, President Muizzu reviewed completed works, the various project phases and the timelines for the remaining development.
The President said the modernised port is one of the government’s highest priorities and will significantly increase the country’s capacity to handle commercial activities.
According to the President, the new facility is expected to expand port operations fourfold, creating greater capacity to support businesses and future economic development.
As an interim measure, some port operations will be moved to an area currently being prepared within the Malé Industrial Zone. The government aims to complete the full relocation of commercial port services to Thilafushi by November 11 next year.
Work on the domestic key wall is now nearing completion, with services from that section expected to begin later this month.
President Muizzu praised the ministries, state-owned companies and international partners involved in the project, describing the modernisation of the commercial harbour as a critical infrastructure initiative for increasing national productivity and strengthening trade.
At the same time, the government has said the planned Rasmalé development is expected to significantly expand foreign investment and create new economic opportunities for the Maldives.
Minister of Infrastructure, Housing and Urban Development Dr Abdulla Muththalib said the Rasmalé development could bring a major transformation to the country’s economic prosperity.
The project, known as the Maldives Waterfront and Marina, has been awarded to Abu Dhabi-based developer Eagle Hills and represents a proposed investment of USD 20 billion, making it the largest foreign-proposed project in the Maldives’ history.
Minister Muththalib said the development is intended to diversify the Maldivian economy by complementing the country’s existing tourism and hospitality infrastructure.
He said the project’s broader economic impact could bring total foreign direct investment into the Maldives to at least USD 31 billion, highlighting the scale of foreign capital expected to enter the country.
“What is important for the Maldives is the total volume of foreign direct investment that will enter the country,” Muththalib said, adding that successful implementation of the project would fundamentally transform the country.
The development also introduces a new revenue-sharing mechanism under which the state would receive four per cent of revenue from each transaction involving leased properties. The minister noted that this differs from the traditional resort-leasing model, where corporate transfers do not generate a payment to the state on every transaction.
The Maldives currently has 177 resorts, 16 hotels, 814 guesthouses and 162 safari vessels operating within its tourism and hospitality sector.
According to government projections, once completed, the Rasmalé development could generate an additional USD 2 billion in annual state revenue.
Together, the relocation and modernisation of the commercial harbour and the planned Rasmalé development form part of the government’s broader efforts to expand infrastructure, attract foreign investment, increase economic capacity and create new sources of revenue for the Maldives.
