MP Shamheed Says Ras Malé Criticism Should Also Apply to Crossroads Deal 

South Hulhumalé MP Dr Ahmed Shamheed has criticised former President Abdulla Yameen’s opposition to the newly announced Ras Malé Waterfront and Marina project, arguing that similar scrutiny should have been applied to the Crossroads development in Emboodhoo Lagoon.

Yameen, speaking at a PNF meeting, said the government had effectively given half of Ras Malé to UAE-based Eagle Hills for 99 years, with an agreement allowing the lease to be extended. He described the arrangement as an illegal agreement that a future government would not be required to honour.

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Responding to Yameen’s remarks, Shamheed said Maldivian politicians often apply different standards depending on who is in power.

“One of the biggest issues with Maldivian politicians is that when they do something it is considered right, but when someone else does the exact same thing, it becomes wrong,” Shamheed said.

He argued that Emboodhoo Lagoon, where the Crossroads development is located, is closer to Malé and more valuable than Ras Malé.

Shamheed said he had previously contacted political leaders over the decision to grant the Emboodhoo Lagoon development for USD 30 million, warning of the potential revenue that could have been generated from the site.

He also criticised the duty exemptions granted to the Crossroads project and permission for goods to be offloaded directly at the development, claiming the resulting loss to the state treasury was greater than the USD 30 million received.

“Without calling to repossess Crossroads (Emboodhoo Lagoon), speaking out against the Ras Malé deal and calling to revoke it makes no logical sense,” Shamheed said.

“The truth is that the Crossroads deal is many times worse than the Ras Malé deal.”

The Government and Abu Dhabi-based developer Eagle Hills signed a commercial terms agreement on September 21 for the Maldives Waterfront and Marina development in Ras Malé, a reclaimed area at Fushi Dhiggaru Lagoon.

The project is planned as an integrated tourism, residential and commercial development featuring hotels and resorts, premium and branded residences, a marina, waterfront promenades, retail and dining facilities, as well as education, healthcare and community infrastructure.

The overall development has been described by different sources as ranging from USD 12 billion to USD 20 billion across its various phases. The government has said the project could attract more than USD 30 billion in gross foreign investment over its lifetime and generate more than USD 2 billion in annual tourism revenue once fully developed.

The Crossroads Maldives development, meanwhile, is located in Emboodhoo Lagoon and includes resorts, retail and entertainment facilities, a marina and other tourism-related infrastructure. The lagoon was sold during Yameen’s term, notably when one of the largest scandals the country has seen, the MMPRC scandal, took place. 

Former VP during Yameen’s reign, Ahmed Adeeb is said to have orchestrated the scandal by offering up lagoons and resorts without acquisition costs and without proper bidding procedures, costing the state billions of USD, and depriving many developers of a fair chance of bidding. After the scandal surfaced, both Adeeb and Yameen were imprisoned; however, Yameen was not directly indicted for a crime related to the scandal.