The government has submitted a Real Estate Bill to the People's Majlis, which stipulates that businesses or services promoting activities strictly prohibited under Islamic Sharia, such as gambling, must not be established or operated in any form within designated zones.

The first reading of the bill will be presented during this afternoon's sitting of the Majlis.

Chapter 8 of the bill is dedicated to introducing a specialized legal framework for Integrated Real Estate Zones.

According to this chapter, to promote the development of the real estate sector in the Maldives, the President has the discretion to designate specific special areas as Integrated Real Estate Zones upon the minister's recommendation. However, the bill explicitly states that no party shall be permitted to establish or operate any business or service within these zones that facilitates activities strictly forbidden under Islamic Sharia, such as gambling.

The bill further specifies that properties developed within such zones, businesses operating therein, and residents living there are strictly prohibited from importing, selling, or consuming alcohol, products containing alcohol, pork, pork-containing products, or goods derived from pork.

Furthermore, land designated as an Integrated Real Estate Zone may be leased to a master developer for a maximum duration of 99 years in accordance with the law. All goods and services provided by businesses operating within these zones will be classified as tourism sector goods and services under the Goods and Services Tax Act, and will be taxed at the corresponding rates applicable to the tourism sector.

The legislation establishes that purchasing property within an Integrated Real Estate Zone does not confer any right to Maldivian citizenship. Additionally, notwithstanding any provisions to the contrary, leasehold rights for properties within the zone cannot be sold, nor can land be subleased, to Israeli citizens, legal entities directly or indirectly owned or holding shares by Israeli citizens, or for the benefit of such parties.

The bill also mandates that land registrations within an Integrated Real Estate Zone for nationals of any single country, or legal entities owned or controlled by nationals of that country, must not exceed 25 percent of the total land area.

Security and safety within the Integrated Real Estate Zone will be maintained by Maldivian security services in accordance with national laws and regulations. The master developer is prohibited from committing or permitting any acts barred by Maldivian laws, or any actions that undermine the sovereignty or independence of the Maldives.

While managing the zone, the master developer must also ensure that visitors and residents are not permitted to display symbols of religions other than Islam, hold non-Islamic celebrations, or construct places of worship for other faiths.

Finally, the bill stipulates that if an infraction constitutes a criminal offense under the Penal Code of the Maldives or any other criminal statute, the authorities must refer the matter to the relevant law enforcement agency for investigation, in addition to enforcing the administrative penalties outlined in the legislation.