Former President Abdulla Yameen has questioned whether the Maldives offers a stable environment for investors, arguing that frequent policy changes by successive governments have eroded investor confidence and created uncertainty about the future of major investments. His remarks were made on Thursday during a series of rallies held by the People’s National Front (PNF).
Yameen used Hulhumale' as an example, recalling that the island was originally dredged to address housing shortages during the administration of former President Maumoon Abdul Qayyoom. He said the initial vision was to develop Hulhumale' as a beautiful place, but claimed that later administrations altered that vision according to their own preferences.
He said that during his own presidency, he rejected earlier height restrictions because Hulhumale' was intended to provide housing, not to be limited by aesthetic considerations. Yameen said tall towers would have been built during his tenure, creating opportunities for investors.
“But is it nice to have this place flattened and buzz‑cut, covered with a cap, or do you want to make it a significantly beautiful place for housing purposes?” he asked.
Yameen also criticised President Dr. Mohamed Muizzu’s recent announcement that residential buildings in Hulhumale' will be permitted to rise up to 10 storeys. The President made the announcement during a consultative meeting with residents, explaining that the new limit will apply to both Phase I and Phase II.
According to the President’s Office, buildings constructed up to 10 storeys must allocate the ground floor exclusively for parking, while an additional floor must be reserved for non‑residential, income‑generating use. The president said the change is necessary as population density increases and infrastructure must be adjusted in line with updated land‑use plans.
An aerial view of the channel between Hulhumale' Phase I and Phase II. (Photo/HDC)
Yameen, however, argued that such shifts in policy from one administration to another create uncertainty for investors and developers. He questioned how large construction companies could feel secure investing in the Maldives when building regulations change with each government.
“For an investor to get confidence, or to have a stable mindset to invest here, there is no policy to what is being done,” he said. “Whether this is the best way to do this, there is no clarity in the minds of these people.”
Until now, residential plots in Hulhumale' were limited to seven storeys. In August 2023, Urbanco, now the Housing Development Corporation (HDC), granted permission for residential buildings to rise to 10 storeys, though the policy was not widely implemented. Ten‑storey buildings were also previously permitted in Vilimale' for non‑residential purposes.
Yameen argued that inconsistent implementation and shifting rules undermine investor trust and make it difficult for the Maldives to attract long‑term capital.