MTDC has been banned! well almost.

Source: Minivannews

Religious conservative Adaalath party’s president appealed public not to buy shares from MTDC (Maldives Tourism Development Corporation) stating the company’s engagement in haram (prohibited in Islam) businesses such as sale of alcohol and pork as well as bank interest.

MTDC – the governments’ flagship public tourism company – started selling 688,123 shares on Monday, at a rate of US$ 13 per share, with a face value of US$8 and a premium value of US$5.

Speaking to Minivan News, Sheikh Hussein Rasheed Ahmed said there would not be any “excuse” when following Islam, saying the Maldives can also be promoted without alcohol and pork.

“Not only MTDC,” said the scholar, “All the resort investors are earning prohibited money.”

At present, MTDC owns and sub-leases nine resort islands, where 55 percent of the company shares are from public, and 45 percent are owned by the government.

Mohamed Mihad, MTDC managing director said Adaalath’s president’s remarks are politically motivated; adding he does not believe it is haram to buy shares from MTDC.

Adaalath is a party which promotes Islamic Sharia and principles.

Further, Mihad said the remarks of Sheikh Hussein would not affect their share market, adding the company decided to sell shares after the board of directors learned the allocated shares for the public is lower than 55 per cent.

“If the shares are sold at the existing speed,” he said, “we hope all the shares will be sold before the deadline.”

The deadline is on 18 August.

MTDC expects to raise over US$1 million from shares to develop a 100 bed resort in Alifu Alifu atoll Uligam.

Speaking about tourism without alcohol and pork, Sheikh Hussein said there are some countries, including Iran and some states of India, which have tourism without haram businesses.

Business Tycoon, Abdulla Jabir, who owns five resorts in the Maldives, said it was difficult to accept religious comments of Sheikh Hussein as sincere because he was a politician.

Jabir did not wish to comment on the whether the tourism industry can survive without alcohol and pork.

The issue of alcohol and pork surfaced after the minister of Islamic affairs Dr Abdul Majeed Abdul Bari, who also belongs to Adaalath, said government revenue from import duties on alcohol and pork was haram.

During the debate last month on a bill proposed by the government to reduce and eliminate import duties, some MPs called for increasing import duties for alcohol and pork.

But, the economic affairs committee of parliament, which is currently reviewing the bill, decided against the increase yesterday.