Maldives has signed a USD 60 million Memorandum of Understanding with the Abu Dhabi Fund for Development (ADFD) for a project to build an international airport and city hotel to develop N. Atoll as a luxury tourism zone.

Minister of Tourism, Moosa Zameer, who is currently in United Arab Emirates, signed the agreement with Director-General of ADFD, Mohammed Saif Al Suwaidi on December 25 2017.

According to the Minister of Tourism, Moosa Zameer, the international airport and city hotel will be built in N. Maafaru. The project will be funded through non-reimbursable financial aid by ADFD.

The construction of the airport and city hotel has been contracted to Singaporean company, Tough Offshore Engineering, who will handle the project in association with another company.

Both the airport and city hotel will be run by the same company, although the company which will run the two facilities is yet to be announced.

"The airport is a gift from them to our people. Its a gift to represent the close ties between the government of UAE and this administration. The airport will also include a city hotel," said Mr Yameen, The President of the Maldives.

The N. Atoll airport project was originally contracted to Millennium Capital Management. The contract was later cancelled due to delays. The project was then contracted to Sun Siyam Resorts in April. But the contract was cancelled after ADFD expressed interest in the project.

ADFD helps in developing countries to achieve sustainable socio-economic growth; through financial assistance in the forms of concessionary loans, managing government grants and equities.

ADFD also peruses investments in order to encourage the private sector in the recipient countries to play an essential part in accelerating the economic development process, and at the same time playing a pivotal role in strengthening and diversifying the future resources of the Fund.