President Dr. Mohamed Muizzu has ratified the bill concerning the leasing of uninhabited islands and lagoons in the Maldives. Passed by the People’s Majlis on the 26th of this month with 47 votes in favour, the bill replaces the former law on uninhabited islands and establishes a new legal framework governing the leasing and licensing of lagoons and uninhabited islands.
Under the new law, the President shall designate uninhabited islands for purposes including tourism, fisheries, agriculture, industrial, economic, social, and state use. Islands falling within the jurisdiction of local councils — with the exception of those designated for tourism and industrial purposes — shall be leased or licensed through the relevant council. Lagoons shall be leased through the ministry responsible for the matter.
Uninhabited islands may be leased for commercial purposes only to companies registered in the Maldives or foreign companies that have been re-registered locally. For non-commercial purposes, leases may also be granted to Maldivian citizens, registered businesses, and associations. Lagoons may be leased for large-scale industrial activities, projects involving investments exceeding one million rufiyaa, and purposes such as aquaculture.
An uninhabited island may be leased for a maximum period of 21 years, with extensions permitted provided the total duration does not exceed 50 years. Islands granted under a license must be those not designated for a specific purpose, and such licenses shall be issued for a maximum period of 5 years. Violations committed on a licensed island shall attract a fine of MVR 500,000, while violations on a leased island shall attract a fine of MVR 1,000,000. Agreements concluded under the previous law shall remain in force; however, the new law shall apply in all other respects, except with regard to the existing rent payment arrangements.
