Reclaiming the entire 1,090-hectare Ras Malé land area is estimated to cost approximately USD 330 million, Minister of Construction and Infrastructure Dr Abdulla Muththalib confirmed last night during the public “Ahaa” forum.
Addressing a question regarding conflicting figures and public speculation surrounding total state expenditure on the flagship reclamation initiative, Minister Muththalib clarified how initial estimates evolved and detailed the projected outlay. The clarification comes amid sustained criticism over a lack of transparency regarding project expenses, as well as the terms surrounding the allocation of 500 hectares of reclaimed land to UAE-based developer Eagle Hills.
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He explained that when work initially commenced, preliminary estimates placed the cost between USD 500 and 700 million. Those early figures were based on prevailing market rates, shore protection requirements, and the expenditure rates incurred by the previous administration on reclamation projects at Gulhifalhu and Giraavarufalhu.
However, he stated that deliberate cost-reduction measures, including chartering dredgers directly and assigning responsibilities across state enterprises, significantly lowered the projected expenditure.
“To reclaim the entire 1,090 hectares of Ras Malé, the estimated cost to the state is USD 330 million,” Minister Muththalib said, noting that proportionally, reclaiming 500 hectares amounts to around USD 160 million. Although some portion of the reclamation will extend past the current year’s initial timeline, he emphasised that the project has secured favourable rates compared to historic reclamation costs in the country.
He dismissed political criticism alleging that the development would drain between USD 700 million and USD 1 billion from state coffers, describing such assertions as misleading attempts to create public fear. He added that the government continues to work toward concluding the bulk of the reclamation by the end of this year.
Under the broader partnership agreed with the government, Abu Dhabi-based developer Eagle Hills will build a waterfront, marina, and mixed-use urban district on its designated plot in Ras Malé. The administration has framed the long-term initiative as part of a multi-phase investment valued at up to USD 12 billion.
Linked to these wider development terms, Eagle Hills is also scheduled to begin constructing 5,000 housing units in Hulhumalé during the first quarter of 2027. The residential project, estimated at USD 500 million, is aimed at easing the severe housing deficit across the Greater Malé region.
