Time to learn from Faafu Atoll project and put nation first: Heena

Minister at the President’s Office Heena Waleed has urged political figures to avoid spreading what she described as misleading claims about major investments, warning that political disputes could damage investor confidence and cost the Maldives significant economic opportunities.
In a post on X, Heena said the country has previously experienced the consequences of controversy surrounding large-scale foreign investment, pointing to the proposed Faafu Atoll development during former President Abdulla Yameen Abdul Gayoom’s administration.
She argued that lessons should be learned from the experience as political debate intensifies over the government’s planned Ras Malé waterfront and marina development with Abu Dhabi-based Eagle Hills.
The proposed Faafu Atoll development emerged during Yameen’s presidency as a multibillion-dollar investment involving Saudi interests. The administration at the time presented the proposal as a major economic opportunity involving tourism and other developments.
However, the proposal became highly controversial, with opposition politicians raising concerns over sovereignty and questioning the terms under which land and lagoons could be provided to foreign investors.
Yameen’s administration rejected allegations that Faafu Atoll was being sold to Saudi Arabia and maintained that the proposal was an investment arrangement. The large-scale development ultimately did not proceed as initially envisioned.
Yameen subsequently argued that political opposition and what he described as misinformation surrounding the proposal had damaged investor confidence and contributed to the investment failing to materialise.
Referring to those previous remarks, Heena questioned Yameen’s current criticism of the Ras Malé development, arguing that the experience surrounding the Faafu proposal should demonstrate the potential consequences of political campaigns against major investments.
She said continuing to create fear among investors without learning from previous experiences raises questions about whether national interests are being placed above political considerations.
Her remarks come amid debate over the government’s agreement with Eagle Hills for a large-scale waterfront and marina development at Fushidhiggaru Falhu as part of Ras Malé.
The government and Eagle Hills signed an agreement on September 21 outlining plans for a development envisioned at approximately USD 20 billion across multiple phases.
The proposed development includes international hotels and resorts, premium and branded residences, a marina, waterfront promenades, restaurants, retail outlets, leisure and wellness facilities and other commercial and community infrastructure.
Eagle Hills is also expected to develop 5,000 housing units for Maldivians as part of the wider project.
Preliminary projections indicate the development could attract more than USD 30 billion in gross foreign investment over its lifetime, including approximately USD 18 billion in net foreign investment. It is also projected to create more than 54,000 direct and indirect jobs.
Once fully developed, Ras Malé is expected to attract more than one million additional visitors annually and generate over USD 2 billion in annual tourism revenue.
Heena also highlighted projections for State revenue from the Eagle Hills investment, claiming the expected returns could exceed the combined revenue currently generated for the State by the country’s 179 resorts, 16 hotels, 920 guesthouses and 165 safari vessels.
She also cited an estimated USD 13.7 billion as the total existing investment in the Maldivian tourism industry, using the figure to illustrate what she described as the exceptional scale of the proposed Ras Malé development.
The figures associated with Ras Malé remain projections based on the project being implemented at its planned scale and should not be considered revenue or investment already realised.
The scale and structure of the project have generated political debate, with critics questioning aspects of the agreement and its implications, while the government has presented it as a transformative investment capable of increasing foreign currency inflows, creating employment and expanding economic activity.
Heena also rejected suggestions that the development could compromise Maldivian sovereignty.
She said she was confident President Dr Mohamed Muizzu would not approve any arrangement that undermines the country’s independence, sovereignty or national interests, describing the President’s position on those issues as firm.
Heena further argued that the administration’s emphasis on national identity and Islamic values is compatible with the Ras Malé investment, maintaining that the project does not undermine those principles.
Ras Malé forms part of a wider urban expansion programme at Fushidhiggaru Falhu. The broader masterplan covers more than 1,100 hectares and includes residential, commercial and tourism districts, with approximately 65,000 housing units envisioned across the new city.
The government has presented the development as both a solution to housing pressure in the Greater Malé region and a vehicle for attracting large-scale foreign investment.
Heena said political competition should not involve distorting information about projects of national importance, calling on political leaders to place the interests of the country above individual ambitions and partisan differences.