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98% of foreign investment is from the financial sector

20.09.2016

In Malta, almost 98% of all foreign direct investment (FDI) is from the financial and insurance sectors, official statistics have shown.

According to the National Statistics Office (NSO), 2015 has registered an increase of FDI by €4.1b, reaching around €152.3b at the end of 2015. In December 2015, foreign investments were €9.2b higher than in the same month of 2014.

In terms of flows, there was a net increase of €4.1b in FDI during 2015. This increase was mainly driven by increases registered under “other capital”. As for flows classified by economic activity, the largest increase was recorded in financial and insurance activities by €3.7b in 2015.

Direct investment flows abroad registered a decrease of €4.7 b in 2015, compared to an increase of €1.8b during 2014. This mainly resulted from decreases in claims on direct investors of €5.6b.

In terms of stock position, as at December 2015, direct investment abroad by resident entities was recorded at €61.6b.

Entities within the financial and insurance industries accounted for over 99% of the total direct investment abroad.

As a European economically and politically stable country, Malta is a growing economy attracting investment from around the world. Its current achievements allow the archipelago to further develop and strengthen its international position. Sustained by an increasing GDP, a low unemployment rate, etc. The Maltese islands are performing well compared to its European counterparts. 

Nexia BT can provide advice on the requirements pertaining to all investment services including: 

  • assistance through the licensing approval process; 
  • advice on the tax implications arising from investment service activities and tax restructuring, the incorporation of the appropriate corporate structures; 
  • co-ordinating with the Malta Financial Services Authority (MFSA); and
  • assistance in understanding the obligations arising under Maltese prevention of money laundering rules.