The government has rejected businessman Ahmed Siyam Mohammed's request for a sovereign guarantee to secure a loan for developing a resort in the Male Atoll.

On April 7, Siyam sought a sovereign guarantee from President Mohamed Muizzu to finance the Emerald Lagoon resort project, which is expected to include over 1,500 rooms and require $165 million (MVR 2 billion). Siyam's proposal noted that funding would come from a Chinese bank, supported by a Maldivian government guarantee, and referred to the government's policy on sovereign guarantees for loans with interest rates below 4%.

Sources confirmed to Atoll Times on Tuesday that the cabinet decided last week to deny Siyam's request. The letter also mentioned that a similar request was considered by the previous government in January 2018, which was attached to Siyam’s current request.

In 2017, the government had granted Siyam a sovereign guarantee for a $127 million loan from China's EXIM Bank to develop the Siyam World resort, which he is still repaying despite challenges during the COVID-19 pandemic.