Gov’t Invites Proposals for Development on Uninhabited Islands

The Ministry of Tourism has issued a call for proposals to develop tourist facilities on uninhabited islands, using the method of cross-subsidisation.

Cross-subsidisation allows an investor to receive a land plot, island, or lagoon in exchange for financing a project that aligns with the government’s economic or social policies. Leased areas are governed by a formal agreement, which includes provisions for government repossession if the lessee fails to meet project obligations. 

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The investor’s project expenses are deducted from the land rent. Each year, a Presidential decree establishes a minimum investment threshold for these projects.

Included in the current invitation are the islands of Dhigufaru and Dhekenenfaru in Noonu Atoll, along with six other islands. To date, six islands have been allocated for tourism purposes as cross-subsidies. 

These islands were designated by former President Ibrahim Mohamed Solih, though the list may be subject to change. The policy of allocating islands for cross-subsidisation has been a practice of previous governments.

The Ministry has stated that proposals can now be submitted under the existing regulation, with application forms available on its website.