President Dr Mohamed Muizzu has issued a Presidential Decree designating Project Ayla as a Special Economic Zone (SEZ), paving the way for its development as a sustainable township.

The minimum investment threshold for a sustainable township to be designated as a Special Economic Zone is set under the First Amendment to the Special Economic Zone Act (Act No. 24/2014), which came into force on 10 November 2025. The framework is further provided for under Presidential Decree No. 1/2025, published in the Government Gazette on 12 January 2025.

The designation was made pursuant to Section 29(h) of the Special Economic Zone Act, following the execution of an investment agreement to develop Project Ayla as an SEZ. The agreement was formalised on Wednesday between Crystal Holdings Private Limited and the Board of Investment.

Under the SEZ framework, the Project Ayla zone will allow a range of integrated developments, including luxury villas and high-end residential projects, a modern healthcare facility, and a globally recognised school of hospitality and leadership. Plans also include an ultra-luxury tourist resort, hotel, and marina, supported by self-sufficient energy and waste management systems powered by at least 60 per cent renewable energy. Integrated aquaculture and agriculture systems, along with supporting infrastructure and essential amenities for residents, staff, and their families, are also permitted within the zone.

A map outlining the boundaries of the Project Ayla Special Economic Zone, along with details of incentives applicable to businesses operating within the area, has been published as an annex to the Presidential Decree.

The Ayla Sustainable Township project carries an estimated investment value of USD 790 million, equivalent to approximately MVR 12.2 billion, and is scheduled for completion by 2028.