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Maldives relaxes rules on foreign land ownership

Despite concerns of military expansion by China, lawmakers in the Maldives have ratified the island nations legislation to allow foreigners to own land in perpetuity, reported AsiaOne.

With 70 members in favour and 14 against it, the new law paves the way for foreigners investing over US$1 billion to own land provided 70 percent of the area is reclaimed from the Indian Ocean.

The constitution prohibits foreigners from owning any part of Maldivian territory, allowing 99-year leases instead.

Under the revisions, 10 percent of the Maldives existing 298 sq km territory will be given to investors in order to develop more reclaimed land.

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Members of the opposition Maldivian Democratic Party (MDP) said the legislatation would give foreign parties unprecedented access to operate within the Maldives. The party was divided on the bill, with 10 in favour and 10 against.

Recent bilateral visits and diplomatic interactions clearly suggests this is sweetener for China, said Eva Abdulla, an MDP legislator who was against it.

Maldives is not in the South China Sea. This situation paves the way for greater Chinese involvement in Indian Ocean affairs. We are now witnessing robust Chinese presence in the Indian Ocean and that is what this government is facilitating.

But President Abdulla Yameen assured neighbouring countries, including India, that it will keep the Indian Ocean a demilitarized zone.

The Maldives entered into a deal with a Chinese firm to upgrade its international airport in September 2014, during a visit by Chinese President Xi Jinping.

It also secured another two Chinese deals a so-called Maritime Silk Route and an Asian Infrastructure Investment Bank (AIIB).

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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