The Maldives Integrated Tourism Development Corporation (MITDC) is set to spend MVR50 million to develop two picnic islands near the capital Male.
MITDC said the project to reclaim a lagoon just 15 minute boat ride away from Male would commence in the next two months while the whole project would be completed in six months.
The new islands will be developed between Dhoonidhoo and Feydhoo Finolhu islands.
The most overcrowded city in the world, Male houses over a third of the archipelago's population. Despite being globally renowned for its sandy beaches, the locals in Male are resigned to two artificial beaches as the government has leased all three picnic islands near the capital for resort development.
Singaporean company Jones Lang LaSalle Properties are the appointed consultants for the project.
The islands will be developed with rooms along with an area dedicated to water sports, restaurants, barbecue area and sports and recreational facilities.