MP Shamheed Calls for Immediate Suspension of Pearl Residence Programme

South Hulhumalé MP Dr Ahmed Shamheed has submitted a resolution to parliament calling on the government to immediately suspend the Maldives Pearl Residence Programme and disclose all agreements related to the scheme.

Submitted on Sunday, the resolution describes the programme as a policy introduced through an administrative decision rather than legislation passed by parliament. It calls for the receipt, processing and approval of applications under the programme to be halted until parliament passes comprehensive legislation governing residence-by-investment programmes.

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The resolution also calls for parliament to consider the matter and determine its position on the programme.

Concerns Over Programme’s Legal Basis and Financial Benefits

Shamheed’s resolution questions the legal basis for granting permanent residence to foreigners under the programme and argues that the financial, contractual and legal terms of the agreement signed with Henley & Partners on 1 July 2025 have not been disclosed to parliament or the public.

It also questions the financial benefit the programme provides to the State and raises concerns over potential implications for national security and financial sovereignty.

The resolution notes that the Immigration Act already provides a route for foreign nationals to obtain a Corporate Resident Visa by maintaining a USD 250,000 fixed deposit in a Maldivian bank for five years.

According to the resolution, this mechanism retains the funds within the Maldivian banking system, while the Pearl Residence Programme primarily allows applicants to obtain residency through a USD 250,000 property purchase.

Resolution Questions Tax Concessions and Project Ayla

The resolution also raises concerns over tax concessions available under the Special Economic Zones Act for properties sold to foreign parties within designated sustainable townships.

It calls for residence-linked property transactions to be excluded from the concessional tax arrangements and proposes the introduction of a dedicated Residence Programme Levy, with the proceeds paid directly into State revenue.

The resolution also questions whether developments associated with the programme could create areas with separate administrative or legal powers that could infringe on the sovereign authority of the Maldives.

It further raises concerns over the designation of Project Ayla and other zones and calls for greater transparency regarding the development of properties linked to the programme.

Questions Raised Over Henley & Partners

Shamheed has questioned the government’s decision to engage Henley & Partners to assist in designing and operating the programme.

The resolution refers to the company’s involvement in Malta’s citizenship-by-investment programme, which was ruled contrary to European Union law by the Court of Justice of the European Union in 2025, and other concerns cited in the resolution.

It also notes that the Government has not disclosed the criteria or due diligence process used to select the company.

The resolution cites concerns raised by international bodies, including the OECD and the Financial Action Task Force, regarding investment migration programmes that lack adequate safeguards and their potential risks in relation to tax evasion and money laundering through real estate transactions.

Calls for Agreements and Financial Information to Be Disclosed

The resolution calls on the government to submit all agreements, fees, commissions and exclusivity arrangements entered into with Henley & Partners and its affiliated entities to parliament within 14 days and without redactions.

It also calls for the Ministry of Finance and Public Enterprises and the Maldives Inland Revenue Authority to publish a comprehensive financial study detailing:

• Tax revenue received from each investment category;
• Concessions granted under the Special Economic Zones Act;
• Payments received by the programme agent and developers; and
• The net amount received by the State.

The resolution further proposes that any future residence-by-investment programme require applicants to maintain a fixed deposit in a financial institution licensed by the Maldives Monetary Authority for the full duration of their residency.

It also proposes that qualifying transactions be conducted through the Maldivian banking system and that properties be subject to a minimum 10-year holding period before they can be sold.

Calls for Investigation and Parliamentary Oversight

Shamheed has called for the Anti-Corruption Commission, the Auditor General and the Financial Intelligence Unit to jointly investigate the selection of Henley & Partners, the designation of Project Ayla and other special economic zones, potential conflicts of interest and compliance with anti-money laundering legislation.

The resolution also calls for an investigation into the implementation of the 2020 amendment to the Immigration Act that introduced the existing Corporate Resident Visa route.

In addition, it urges parliament to summon the Minister of Economic Development, Transport and Trade, the Attorney General, the Controller General of Immigration and the Governor of the Maldives Monetary Authority for questioning.

The matter is also proposed to be referred to the relevant standing committee, which would be asked to submit a report to parliament within 60 days.

If the Pearl Residence Programme proceeds, the resolution calls for parliament to receive annual reports detailing the number of applications received, approved and rejected, applicant nationalities, tax collected, foreign exchange retained in the Maldives and any residence permits revoked.