SOEs Viable to Develop Resorts with 45% Gov’t Share, Subject to Cabinet and Parliamentary Approval

State-owned enterprises will be able to develop and operate tourist resorts under a new regulatory framework that requires at least 45 per cent government ownership and approval from both the Cabinet and the People’s Majlis.

The provisions are set out in the Regulation on Leasing Islands, Land, or Lagoons to State Companies for the Development and Operation of Tourist Resorts or Integrated Tourist Resorts, which was gazetted on Thursday.

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Under the regulation, islands, land or lagoons will be allocated to state companies through agreements signed between the leasing authority and the Government. Any proposed development must secure approval from both the Cabinet and Parliament before proceeding.

The regulation also requires state companies to demonstrate sufficient technical expertise and financial capacity to undertake resort development and operations.

In addition, SOEs involved in such projects must contribute USD 500,000 to the Tourism Trust Fund as part of their corporate social responsibility obligations. Alternatively, they may finance designated development initiatives, including economic centres on inhabited islands, human resource development projects, football or turf facilities, or traveller accommodation projects on islands.

The framework establishes a formal structure for state participation in resort development while setting conditions on ownership, capacity and financial contributions.