Government Mandates 45% State Ownership for SOEs Leasing Islands for Resort Development

The Maldivian government has introduced new regulations requiring state-owned enterprises (SOEs) to maintain at least a 45% government ownership stake to be eligible for leasing islands, land, or lagoons for tourist resort development. Under these new guidelines, the leasing process is subject to strict oversight. Both the proposed development location and the selected state-owned company must receive formal approval from the Cabinet before any lease agreements can be issued. Furthermore, the President of the Maldives must first designate the specific location for tourism purposes. To ensure project viability, selected companies must demonstrate the necessary technical and financial capacity to operate a tourist resort or an integrated tourist resort. Once approved, these companies are required to pay a lease acquisition fee set by the Ministry of Tourism and Environment and submit a comprehensive expenditure plan. Beyond financial obligations, the regulations emphasize community impact through Corporate Social Responsibility (CSR). The government may mandate that companies contribute USD 500,000 to the Tourism Trust Fund or invest an equivalent amount in approved community projects. Eligible initiatives include the construction of football stadiums, artificial turf pitches, social centers on inhabited islands, and human resource development programs. Transparency is a core component of the new framework. Full details of every transaction must be submitted to the Auditor General’s Office and the Ministry of Tourism and Environment within 14 days of signing the lease agreement. This ensures a clear trail of accountability for state assets used in tourism expansion. The regulations also extend to inhabited islands. Any state-owned company wishing to develop hotels or guesthouses on these islands must ensure the land or lagoon has been officially designated for tourism by the President. All such allocations must be finalized through a formal agreement between the Government of Maldives and the recipient company. These measures align the development of state-owned tourism assets with national development policies, ensuring that the growth of the tourism sector provides tangible benefits to local communities and maintains strong public oversight.