President Dr Mohamed Muizzu has announced that the Government has annulled all agreements made by previous administrations that granted land in exchange for services rendered under various infrastructure and reclamation projects on May 3, 2025.

The decision affects deals in which land was provided to contractors, particularly foreign entities, as compensation for work on major development initiatives, including dredging and reclamation. The President stated that all such lands have now been reclaimed by the State.

Among the affected projects are the reclamation works at Giraavarufalhu and the third phase of Hulhumalé development, which were previously linked to land allocations in areas such as Thilafushi. The President noted that delays in some of these projects were due to complications arising from these earlier arrangements.

He added that future Government projects will no longer rely on land-for-service compensation models. Instead, the Administration will seek direct contractor engagement for project execution, with payments made through financial contracts rather than land allocation.

President Dr Muizzu said the revised approach aims to safeguard state land assets and improve transparency and efficiency in public development projects. The shift comes as the Government moves forward with key housing and infrastructure plans, including the Rasmale’ initiative.