Tag: saudi arabia

GMR arbitration verdict to take up to two months

The government has confirmed that arbitration proceedings regarding the terminated GMR contract – expected to be concluded this week – may take up to two months to reach a verdict.

President Abdulla Yameen had recently stated that the government had failed to reach an out of court settlement with the Indian infrastructure giant, which is seeking US$1.4billion in compensation after the premature annulment of its 25-year concession agreement.

“But the thing is, the GMR is seeking a huge amount as compensation. This government, however, does not believe that we can – or indeed that we need to – pay such a large amount as compensation,” Yameen stated prior to his departure to Japan earlier this week.

“So their [GMR’s] decision now is to wait until the arbitration case is concluded. So we will carry on after the arbitration case is completed,” he continued.

Yameen revealed his intention to seek further foreign investment in the development of Ibrahim Nasir International Airport (INIA), with Japanese, Singaporean, and Middle Eastern investors all being courted.

The president confirmed that the arbitration case had commenced and that both Minister of Defence and National Security Mohamed Nazim and former Attorney General Azima Shakoor had attended the hearing as witnesses from the state.

“Those from our government who were handling the matter at the time have attended the first session’s hearing and provided the necessary information,” Yameen said.

New facilities

“We are not seeking just one single investor for the airport. This is because development of the airport will be a huge project,” Yameen told the media on before his departure on Sunday (April 13).

“What we are speaking about is a new airport. We want it to be an iconic building with additional runway, an additional terminal and new terminal facilities.”

The Maldives Airport Company Limited (MACL) has today confirmed that a second runway will form a crucial part of any new development – the need for which has come to the fore again this week as the state of the airport’s runway partly to blame for the bursting of landing aircraft’s tire in December 2011.

United Arab Emirates’ General Civil Aviation Authority found that the burst tire of a landing Emirates flight was partly caused by the accumulation of standing water on the runway.

The reports advised the Maldives Civil Aviation Authority to “ensure that Operators utilising Male’ airport are fully aware of the runway condition until the runway enhancements are finalised”.

Demands for a second runway – not included in the initial agreement – were among the criticisms levelled at the US$500million GMR concession agreement, before the deal was declared void ab initio (‘invalid from the outset’) by the Dr Mohamed Waheed government.

With speculation about excessive foreign influence accompanying the anti-GMR campaign prior to the contract’s termination, President Yameen has assured that overall  management of the airport will stay in the hands of MACL.

New investors

“We are also thinking about making the airport into one that can carry over 5 million passengers. We want the airport to be one that can cater to tourism growth within the next 50 years,” Yameen explained this week.

“Therefore, this is a project worth at least 600 to 800 million dollars. Of the various components of the airport, we are approaching Japan to invest in terminal facilities and a terminal building. So this trip [to Japan] is not one where we are seeking a single party to develop the whole airport.”

He further stated that Vice President Dr Mohamed Jameel Ahmed had held positive discussions with Kuwait over airport development assistance while he had personally met with Saudi Arabia’s infrastructure giant Bin Laden Group, who also expressed interest in the project.

While the Minister of Economic Development Mohamed Saeed and Minister of Tourism Ahmed Adeeb are working on a concept design of the airport, the senior management of Singapore’s Changi airport were being mooted as consultants for the development.

Yameen will travel to Singapore later this month to inaugurate the Maldives Investment Forum, a government initiative to showcase ‘high level’ investment opportunities in the country, including the development of INIA.

The president has previously assured foreign investors that future investments will in the Maldives are safe, and will soon be protected by enhanced legislation.

“We are going to open up the Maldives in a huge way to foreign investors. Our thirst cannot be quenched. The opportunity to foreign investors is going to be enormous,” he told potential developers earlier this month.

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Saudi Arabia donates 50 tonnes of dates to Maldives

Saudi Arabia has given the Maldives 50 tonnes of dates in celebration of the holy month of Ramdan, local media has reported.

Islamic Minister Sheikh Mohamed Shaheem Ali Saeed told Haveeru that the annual gift would be shipped to the country soon, after which he would decide on how the dates ought to be distributed.

The dates – a traditional gift from the Arab kingdom to the Maldives since 1988 – will be stored by the State Trading Organisation before being distributed by the Local Government Association.

Ramadan will fall at the end of June this year.

Growing links between the two countries in recent months have seen moves to increase educational and aviation links, as well as a Saudi pledge to build ten “world class” mosques by Saudi Crown Prince Salman bin Abdulaziz during a recent visit to the Indian Ocean nation.

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Saudi Arabia’s growing role in the Maldives: BBC

“Foreign holidaymakers in the Maldives, one of the world’s most popular luxury honeymoon destination, were not happy earlier this year when their hotel bookings were cancelled at short notice,” writes Charles Haviland for the BBC.

“The reason was that Crown Prince of Saudi Arabia, Salman bin Abdulaziz al-Saud, had booked out three whole islands for nearly a month.

It is just one example of the growing role of Saudi investment in the archipelago, a factor which may make the Maldives’ government unwilling to ruffle the feathers of Saudi Arabia’s rulers.

“The well-being of our guests is always our primary concern,” a spokeswoman for the Anantara resorts told the British newspaper, the Daily Mail, which reported that some tourists were angry at being moved to make way for the Saudi prince.

Prince Salman, who is also Saudi Arabia’s defence minister, was on an official business visit at the invitation of Maldives President Abdulla Yameen, who was elected in November after two years of political turmoil.”

Read more

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Hundreds queue to submit forms to Hajj Corporation

Additional reporting by Ahmed Naish

Hundreds of would-be pilgrims have been queuing outside Dharubaaruge since last night to submit forms to the Hajj Corporation.

The corporation began accepting application forms at 9:00am this morning.

Of the 800 pilgrim quota afforded to the Maldives by the Saudi Arabian government, 400 were reserved by the Hajj Corporation. The remaining 400 pilgrim quota are to be divided among local Hajj groups selected through a bidding process.

The bidding process for the remaining allocations was halted last week, however, as the Anti-Corruption Commission last week ordered the Ministry of Islamic Affairs to revise the criteria for awarding quotas.

As of this morning, the number of people queuing outside Dharubaaruge reportedly exceeded 400 people.

The government-owned corporation announced last week that its rates for the pilgrimage were MVR69,965 (US$4,537) per person. Maldivians who have performed the annual Hajj pilgrimage to Mecca in the past would not be eligible.

Chairwoman Dr Aishath Muneeza told the press that the corporation will accept application forms for a one week period. The selected individuals will be announced after processing the forms and verifying information, she said.

Muneeza said the corporation’s goal was to provide quality service for the 400 pilgrims.

The corporation signed an MoU with the Maldives National Defence Force earlier this year for officers to assist pilgrims during their trip to Saudi Arabia.

According to the corporation, the hotels chosen for accommodating pilgrims will have ATM machines, internet, hot and cold water, coffee and tea at all times and room service at least once every day.

Other amenities and services include loading and unloading of luggages, 24-hour religious lectures, and laundry services. The corporation said it would allow a maximum of four people in each room.

For those with long-term Hajj plans, the corporation has introduced a “saving package” which can be purchased with an initial payment of MVR500.

The clients of this package will be allowed to make the Hajj pilgrimage when 75 percent of the total payment is completed on an installment basis.

Performing the Hajj pilgrimage at least once in a lifetime is one of the five pillars of Islam.

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Islamic minister visits Saudi Arabia for international conference

Minister of Islamic Affairs Sheikh Mohamed Shaheem Ali Saeed has today left for Saudi Arabia on an official trip.

According to the Islamic Ministry, Minister Shaheem will be attending the International Conference on Unity of the Islamic Ummah, which is to be held in Mecca on March 2 and 3.

The conference will be attended by several Islamic organisations and the islamic ministers of numerous islamic states. The guest of honour of the event is to be Saudi Arabian King Abdulla Bin Abdul Azeez Al Saud.

The ministry further revealed that Shaheem will be seeking aid and assistance for Islam-related projects planned for the Maldives.

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Saudi crown prince greeted with ceremonial welcome

Saudi Crown Prince Salman bin Abdulaziz arrived in the Maldives yesterday afternoon, being greeted at Ibrahim Nasir International Airport by President Abdulla Yameen.

After a brief meeting between the two in the airport’s VVIP lounge, the prince received a ceremonial welcome in Malé’s Republic Square, stated the President’s Office.

The Saudi Gazette has reported a joint statement after what it described as “extensive talks” with President Yameen, reiterating a determination to fight extremism and terrorism.

“The two countries also underscored the significance of boosting bilateral security cooperation in fighting piracy, drug trafficking and money laundering,” reported the Gazette.

Prince Salman, accompanied by the Saudi minister of defence and the deputy prime minister, received a seven-gun salute before being introduced to senior government officials.

The joint statement was said to highlight both countries’ basis on “moderate and tolerant principles of Islam,” with Yameen offering gratitude to King Abdullah for the support offered to the Maldives through the Saudi Development Fund.

“The leaders also discussed bilateral economic relations and ways to further strengthen them in a way serving the interests of the people of the two countries,” said the Gazette, which also reported that the prince had met with former President Maumoon Abdul Gayoom.

The announcement last week of a US$100 million resort project by a Saudi real estate firm Best Choice was said to be unrelated to the royal family or the prince’s official visit.

Prince Salman’s arrival was preceded by global media interest in his reportedly lavish accommodation arrangements – said to encompass three resorts for nearly one month.

The visit – part of an Asian tour taking in India, Pakistan, and Japan – had been reported to include discussions regarding potential investments in energy, tourism, transport, and Islamic affairs, as well the provision of a soft loan facility of US$300 million.

The visit comes amid growing ties between the Yameen administration and the Saudi kingdom. Vice President Dr Mohamed Jameel Ahmed visited Saudi Arabia earlier this month, meeting with the Imaam of the Grand Mosque of Makkah.

The vice president stressed the importance the government placed on enhancing ties with the Arab world and in strengthening religious unity in the Maldives. Shortly after Jameel’s return, the government initiated its pledge to introduce Arabic lessons in schools as part of a drive to increase Islamic learning in the country.

Jameel’s trip followed the January visit of Defence Minister Mohamed Nazim, during which time an MoU was signed regarding the increase of air traffic between the Maldives and Saudi Arabia.

After being invited by the Maldives Islamic Minister Dr Mohamed Shaheem Ali Saeed in January, the Saudi Arabian Muslim Scholars Association agreed to provide a grant of MVR1.6 million to assist in the provision of Islamic education in the Maldives.

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Saudi investment firm to develop US$100 million resort in Laamu atoll

Saudi real estate investment and development firm Best Choice has announced plans to develop a US$100 million resort on Vadinolhu island in Laamu Atoll.

“We are negotiating with investors, and we are looking for more,” Best Choice CEO Mohamad Rabih Itani told Minivan News today.

“Our aim is to develop Vadinolhu Island as a high-end resort with world-class facilities to promote it as a complete family destination,” Itani explained in a company press release.

With headquarters in Bahrain, Best Choice – formed just last month – also has offices in Turkey and the Maldives. The company’s owners, however, have been active in the Maldives for a number of years, Mitani told Minivan.

“The company was established last month, but we already had a company in the Maldives called Miulu developments since 2011.”

Established by Saudi investors, the group currently specialises in properties in Italy and Spain, as well as selling mixed-use projects in Turkey and residential developments in Saudi Arabia.

Saudi Prince Salman bin Abdulaziz is scheduled to visit the Maldives this week, and ties between the Arab state that the Indian Ocean archipelago have been growing under the presidency of Abdulla Yameen.

Headlines in Saudi Arabia have suggested that Prince Salman will discuss potential investments and partnerships in energy, tourism, transport, and Islamic affairs, as well the provision of a soft loan facility of US$300 million for the Indian Ocean nation.

President’s Office Spokesman Ibrahim Muaz today said that prince’s visit is still due to take place, and that Prince Salman will meet with President Yameen during his stay.

When asked about Best Choice’s links with the Saudi royal family and the increasing relations between the two states, Mitani stated that the timing of the resort announcement was “pure coincidence”.

The proposed resort, reported to feature 100 beach villas, world-class dining services, wellness facilities, and leisure activities, a Best Choice press release has stated. The resort is expected to be completed by 2017.

“We have already designed a business proposal targeting potential investors to collaborate with us in the operation and management of the resort. We are confident of achieving an operating profit in the second year with the cash payback period at six years,” Mitani explained.

Best Choice’s press release describes the Maldives as “one of the most recent investment destinations in South Asia”.

“Due to its investment-friendly policies, the South East Asian Island offers attractive opportunities to keen investors – especially those into resort management,” read the release.

The Yameen administration has sought burnish the country’s credentials as an attractive place to invest after the premature termination of Indian company GMR’s deal to develop the international airport in late 2012.

Although Yameen’s Progressive Party of Maldives – part of the governing coalition at the time of GMR’s expulsion – includes many vocal opponents of the GMR deal, the party has since distanced itself from the decision.

Reassuring foreign investors of the safety of the Maldives as a destination for investment was recently announced of one of the main aims of the administration’s foreign policy.

The Maldives brand of luxury tourism currently accounts for 70-80 percent of the country’s GDP, with the IMF noting recently that investors in the Maldivian resorts can expect a quicker return on investment than in similar resort industries. The industry attracted over 1.2 million tourists in 2013.

The IMF delegation also noted that, despite plans to increase tourist goods and services tax to 12 percent later this year, the Maldives tourism industry was still only lightly taxed in comparison to other destinations.

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Saudi prince’s Maldives visit makes global headlines

The visit of Saudi Prince Salman bin Abdulaziz continues to make headlines today after the UK’s Daily Mail newspaper reported that the prince had booked out Anantara’s three South Malé atoll resorts for nearly one month.

Headlines in Saudi Arabia have suggested that Prince Salman – due to arrive tomorrow – will discuss potential investments and partnerships in energy, tourism, transport, and Islamic affairs, as well the provision of a soft loan facility of US$300 million for the Indian Ocean nation.

“The crown prince’s trip to the Maldives comes in response to the invitation extended by Maldivian President Abdullah Yameen Abdul Gayoom,” Maldivian ambassador to Saudia Arabia Adam Hassan told Arab News.

Anantara’s Dhigu, Naladhu, and Veli resorts – all within an hour’s boat ride from the capital Malé – were said to have been reserved for the 78 year old heir to the Saudi throne.

The Daily Mail has reported the comments of “furious” tourists who had reservations cancelled without forewarning or apology.

Staff at Anantara were unable to provide any further information when contacted by Minivan News today. Similarly, spokesman at the President’s Office was unavailable for comment.

Saudi Arabia’s foreign ministry reported last week  that that prince’s official visit to the Maldives came on the invitation of President Abdulla Yameen and would form part of an Asian tour taking in India, Pakistan, and Japan. The President’s Office confirmed the visit but declined to provide further details.

The visit comes amid growing ties between the Yameen administration and the Saudi kingdom. Vice President Dr Mohamed Jameel Ahmed visited Saudi Arabia earlier this month, meeting with the Imaam of the Grand Mosque of Makkah.

The vice president stressed the importance the government placed on enhancing ties with the Arab world and in strengthening religious unity in the Maldives. Shortly after Jameel’s return, the government initiated its pledge to introduce Arabic lessons in schools as part of a drive to increase Islamic learning in the country.

After being invited by the Maldives Islamic Minister Dr Mohamed Shaheem Ali Saeed, the Saudi Arabian Muslim Scholars Association in January agreed to provide a grant of MVR1.6 million to assist in the provision of Islamic education in the Maldives.

Jameel’s trip followed the January visit of Defence Minister Mohamed Nazim, during which time an MoU was signed regarding the increase of air traffic between the Maldives and Saudi Arabia.

Prince Salman is currently in Japan and was today awarded an honorary doctorate from Tokyo’s Waseda University.

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Maldives signs MoU permitting flights to Saudi Arabia

Following the signing of a memorandum of understanding on strengthening air transport between Saudi Arabia and the Maldives, Maldivian airlines are now permitted to fly to Saudi Arabia.

The MoU was signed during a meeting between the Maldives’ Minister of Defence and National Security Mohamed Nazim and the Saudi Arabian General Authority of Civil Aviation’s vice president during Nazim’s official trip to Jeddah in January .

The Defence Ministry informed local media that, with the signing of the MoU, flights from both countries are now permitted to fly to one other. They stated that 14 flights a week are now allowed to fly from the Maldives to Jeddah, Riyadh, and Medina in Saudi Arabia.

According to the ministry, the national airline Maldivian, as well as private carrier Mega Maldives has expressed interest in holding flights to Saudi Arabia.

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