State-owned enterprises seeking to lease islands, lagoons, or land for resort development in the Maldives will now be required to maintain a minimum government shareholding of 45 percent under a new regulation introduced by the government. The regulation establishes the framework for leasing designated properties to state-owned companies for the development and operation of tourist resorts and integrated tourist resorts, while setting out clear eligibility criteria and approval procedures for such projects.
Under the new rules, any proposal to lease an island, land, or lagoon to a state-owned enterprise must first be reviewed and approved by the Cabinet. In addition to securing approval at the highest level of government, the company selected for the project must demonstrate that it possesses the financial strength and technical capability necessary to undertake and operate a resort development of this scale. This requirement is expected to ensure that only qualified and well-prepared entities are entrusted with projects that carry significant economic and national importance.
A central provision of the regulation is the requirement that the government must hold at least 45 percent ownership in a company for it to qualify for such a lease. The regulation further states that any lease granted to a state-owned company must be formalised through a legally binding agreement between the government and the leasing entity, providing an institutional basis for accountability, clarity, and long-term oversight.
The introduction of this framework comes at a time when resort development continues to hold a central place in the Maldivian economy and its international tourism profile. Resort projects represent not only major investments in hospitality infrastructure, but also long-term contributions to employment, destination branding, foreign exchange earnings, and regional economic activity. By setting minimum ownership, approval, and capacity requirements, the regulation provides a more structured path for state-owned enterprises to participate in a sector that remains one of the country’s most globally recognised industries.
The Maldives’ resort sector is widely regarded as one of the most distinctive in the world, offering a tourism model built around natural beauty, privacy, marine experiences, and high-end hospitality. New resort developments often bring broader economic opportunities through construction activity, supply chain expansion, transport services, and job creation across multiple skill levels. They also help extend tourism activity to different parts of the country, supporting local livelihoods and reinforcing the Maldives’ standing as a leading international destination for premium island tourism.
The regulation also arrives amid increased public attention on the role of state-owned enterprises in commercial sectors where private companies have traditionally maintained a strong presence. Questions have been raised in recent years regarding the allocation of major projects to SOEs and whether such arrangements could create uneven conditions for private businesses. Critics have argued that greater state participation in commercial activity may affect the operating space available to private investors, particularly in capital-intensive industries such as tourism and real estate development.
At the same time, the new regulation provides a formal and transparent mechanism through which such projects may proceed, replacing uncertainty with clearer standards. By requiring Cabinet approval, significant government ownership, demonstrated financial capacity, technical expertise, and a binding lease agreement, the framework aims to strengthen governance around resort development involving state-owned enterprises. For international observers and industry stakeholders, the regulation signals an effort to place resort leasing through SOEs on a more defined institutional footing while maintaining focus on project viability and national economic value.
As the Maldives continues to advance its tourism industry, the resort segment remains a key pillar of growth, international visibility, and investor interest. The new regulation is expected to shape how state-linked entities participate in future developments, while reinforcing the importance of capacity, structure, and formal oversight in projects tied to one of the country’s most valuable economic sectors.
advertisment
advertisment
