The government has submitted a bill to Parliament proposing a new legal framework for the leasing and management of lagoons and uninhabited islands, replacing the existing Uninhabited Islands Act.
The proposed Lagoons and Uninhabited Islands Lease Bill was submitted by Thinadhoo North MP Saudullah Hilmy. It sets out a new system for designating, allocating and administering lagoons and uninhabited islands across the Maldives.
Under the bill, the President will have the authority to designate lagoons and uninhabited islands for a range of purposes, including tourism, fisheries, agriculture, industry, economic and social development projects, state functions and any other purposes specified under existing laws.
The legislation proposes that uninhabited islands designated for tourism and industrial development will be leased directly by the government. All other uninhabited islands under the jurisdiction of local councils will be managed and leased by the respective island councils, while lagoons will be administered by the relevant ministry.
The bill also expands eligibility for leasing to both domestic and foreign investors. Uninhabited islands allocated for commercial purposes may be leased to Maldivian citizens, registered companies and partnerships, as well as foreign businesses that are re-registered in the Maldives.
For non-commercial purposes, the bill allows islands to be allocated to Maldivian citizens, businesses and associations for activities including large and medium-scale industrial projects, economic ventures with a minimum investment of USD 64,850, aquaculture and related enterprises.
The proposed law sets a maximum lease period of 21 years for islands designated for a specific purpose, with extensions permitted up to a total of 50 years. Islands without a designated purpose may be leased for an initial period of up to five years, with the option of further five-year renewals.
