Malta Attracted 136.8 Billion Euros FDIs in 2014

According to the IMF’s Balance of Payments and International Investment Position Manual (BPM6), foreign direct investments in Malta, in the first half of 2014, amounted to 136.8 billion euros, while direct investments made by Maltese companies abroad reached to 35.7 billion euros. The IMF’s Balance of Payments report has also incorporated special purposes entities in 2014 compared with reports released in the last years that did not include companies in the financial sector.

Foreign direct investments in Malta in 2014

During the first half of 2014, Malta has received foreign direct investments of 136.8 billion euros from which 97.9% came from the insurance and financial sector and, compared to June 2013, the amount has increased by 5.6 billion euros. The net increase of foreign direct investments in Malta by the middle of 2014 was 1.5 billion euros and, compared to the same period of 2013, FDIs recorded a 4.1 billion euros increase.

Malta is a very attractive destination for foreign investors due to its EU membership, the relatively low costs of highly-skilled workforce and its geographical position that opens routes to Mediterranean and North African economies. Malta has also a very pro-business legislation and it has invested a lot in the development of the pharmaceuticals, IT&C and manufacturing industries during the last years. 

Malta’s direct investments abroad

During the first half of 2014, Maltese companies have increased their investments abroad by 0.7 billion euros compared to the 0.9 billion euros increase during the same period of the previous year. In June 2014, direct investments abroad made by Maltese companies were estimated at 35.7 billion euros.

During 2013, companies registered in Malta have made 1.1 billion euros direct investments abroad, of which 600 million euros have been invested in other EU member states.

Portfolio investments held by Maltese companies abroad amounted to approximately 85 billion euros at the end of 2013, according to the National Statistics Office. Among these, equity securities represented about 76% of total securities meaning about 64 billion euros. Compared to 2014, Maltese companies have invested mostly in Turkey, the United Kingdom, France and Ireland in 2013.