President Muizzu Ratifies New Law Governing Lease of Uninhabited Islands

President Dr Mohamed Muizzu has ratified a new legislative framework governing the allocation and leasing of uninhabited islands and standalone lagoons across the Maldives. The act replaces the 1998 Law on Uninhabited Islands, introducing updated procedures to streamline how these land masses are designated for economic, industrial, and social development. The new legislation establishes a structured approach for granting unallocated islands under the traditional 'varuvaa' system for maintenance purposes, while setting clear guidelines for industrial and social utilization. This move is expected to provide greater transparency and predictability for developers and local stakeholders seeking to utilize the Maldives' expansive uninhabited land resources. A central component of the bill is the introduction of revised rental rates tailored to the purpose of the lease. For industrial and economic ventures, the rate is set at USD 0.06 per square metre. Leases dedicated to fisheries, agriculture, or social purposes will be charged at USD 0.16 per square metre. Additionally, islands granted under the 'varuvaa' maintenance system will be subject to an annual fee of USD 0.13 per square metre. The bill was passed by the Majlis (the Maldivian Parliament) on 26 August and officially ratified by President Muizzu during a ceremony at the President's Office. The legislation will formally take effect 30 days after its publication in the Government Gazette. By repealing the decades-old 1998 law, the government aims to modernize the management of the nation's natural assets, ensuring that the leasing process aligns with current economic goals and sustainable development practices.