Abu Dhabi’s Eagle Hills Plans Record $12 Billion Maldives Mixed-Use Island
Eagle Hills, the Abu Dhabi-based developer, announced plans for a $12 billion mixed-use project in the Maldives, targeting a 5.2 million square meter island roughly 20 minutes from the capital Male. Mohamed Alabbar, who leads Eagle Hills and also heads Dubai’s Emaar Properties, said Emaar may join the venture. The project will span thousands of residential units, hotels, resorts, retail, schools, clinics, a water park, and a marina across five districts. It represents the largest foreign direct investment in the Maldives’ history.
Dubai and Abu Dhabi developers accumulated substantial capital reserves during a five-year property boom that drove values up sharply. Recent conflict affecting U.S.-Israeli relations with Iran and the closure of the Strait of Hormuz have dampened demand in the emirates and raised costs for Gulf builders. Eagle Hills and Emaar had already begun international expansion before hostilities began, with Eagle Hills committing $6 billion to a Georgian development last year and Emaar operating projects in Egypt and India. Alabbar said Dubai property sales have declined but that existing backlogs, margins, and collections remain strong enough to sustain operations.
The Maldives project, named Ras Malé, aims to transform the archipelago’s tourism model from single-resort island stays to extended multi-week or multi-month visits by wealthy retirees and families from the Gulf, Europe, and India. Abdulla Muththalib, the country’s minister of Infrastructure, Housing and Urban Development, said the $20 billion development across all phases could attract more than a million additional visitors annually and generate $2 billion in yearly tourism revenue. The Maldivian government contributed land and will share in profits, while Eagle Hills committed to building 5,000 social housing units in the first stage.
The project is expected to create over 40,000 jobs, including 15,000 permanent positions, and contribute to the island nation’s tax base. Phasing will match demand, Alabbar said. Regional developers are seeking offshore opportunities as home markets face headwinds from geopolitical disruption and rising construction costs. Emaar is Dubai’s largest developer and has maintained project pipelines despite softening sales activity in the emirate.
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