The cabinet has decided to pursue constitutional amendments that would allow foreign ownership of land and buildings in specially designated real estate development zones, according to documents obtained by Adhadhu.
Under Article 251 of the constitution, no part of Maldivian territory may be transferred to a foreign party, and leases are limited to 99 years. The proposed changes would create an exception for zones designated by the President as real estate development zones. Within those zones, foreigners could acquire freehold or long-term leasehold rights.
A draft submitted by then Infrastructure Minister Abdulla Muththalib outlined several measures: amending the constitution, enacting a real estate property law for foreigners, establishing a real estate development law, creating a property dispute resolution mechanism, adjusting immigration rules for high-value investors, setting up a property registry, and establishing a Property Regulatory Authority.
The documents state that Maldivian sovereignty would continue to apply fully in the zones and that ordinary laws would remain in force except where specifically exempted. Foreign owners would not gain citizenship or political rights. Once designated, a zone’s status could later change, but existing investors’ rights would be protected.
The cabinet decision was taken in September 2025, before local council elections. Implementation has been delayed, partly because of the political environment and the need for a public relations strategy, sources told Adhadhu. No official comment was immediately available from the government.
The proposals have drawn criticism from opposition figures and religious scholars, who argue they risk permanent alienation of Maldivian land, particularly in connection with the Rasmale’ project.