The Ras Male project with UAE-based Eagle Hills will be implemented under the Private Sector Initiated Proposal (PSIP) framework, Construction and Infrastructure Minister Dr Abdulla Muththalib has stated.
Responding to a query from Galolhu North MP Mohamed Ibrahim in parliament, the minister explained that the agreement with Eagle Hills falls under section 10.22 of the state property regulations. This allows private parties to propose projects instead of the government initiating open tenders.
Only commercial terms have been signed so far. The final agreement will be concluded after full legal review in line with the constitution and relevant laws.
The land lease period has been set at 99 years. Under the commercial terms, Eagle Hills is expected to pay the state a premium equivalent to 10 percent of its total revenue from the project, estimated at around three billion US dollars over the lease period as property values rise. Of this, 500 million dollars is earmarked for public housing projects.
The minister noted that the approach was chosen to advance a large-scale development while retaining state ownership of the land. Eagle Hills, founded by Mohamed Alabbar, is known for major projects including Burj Khalifa and Dubai Mall.
Parliamentary scrutiny of the project continues, with opposition members questioning the decision to forgo open bidding.