Malta Economy Diversifies Eastwards

Dr Jonathan Pisani | Published on 23 Feb 2012

Chetcuti Cauchi

Malta representatives have met in February 2012 with their counterparts in numerous Persian Gulf states to enhance the Malta economy eastwards.  Malta is continually building on its already successful efforts to strengthen the local economy, and build upon the numerous resources the island offers.  This has reaped significant benefits, including the rapid expansion in the local service sector, notwithstanding the slow economic growth and contraction experienced globally.

The meetings have borne fruit, seeing an increase in the foreign direct investment in Malta by Gulf states.  The Gulf-owned aircraft maintenance entity SR Technics already operates in Malta and has brought major clients, such as the airline company EasyJet, to a line up of other big names in the airline maintenance industry.  Malta also enjoys excellent relations with Dubai leading to huge ICT investments.  Suffice it to mention the establishment of SmartCity, a $300m investment from the east, and the creation of a projected over 5000 jobs.  These meetings should see further growth in these sectors and also in the local English language schools sector, representing a sizeable sector of the islands’ GDP, and the healthcare services sector.  
In addition, treaties for the avoidance of double taxation and the prevention of fiscal evasion were also signed.  The legislative initiative will facilitate commercial relations between Malta and the Gulf States and stands to attract foreign direct investment from other regions looking to use Malta as their base for trade eastwards.

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