FinanceMalta

Malta is where regulatory innovation and emerging technologies complement each other, creating the right conditions for financial companies, both big and small, to thrive. Add to this a seasoned talent pool, strong language skills, a competitive business environment and high quality of life, and it becomes clear why investors believe in Malta, its potential and its future.

Malta is transforming its finance centre and unlocking a wave of new opportunities. The Malta strategy is to out-manoeuvre incumbent finance centres by harnessing its nimbleness and coupling it with digital financial innovation to deliver new product lines and a path to faster and more sustainable growth.

A booming economy with high GDP growth and record-low unemployment, Malta has emerged as one of the most remarkable success stories in the Eurozone. Recognised for its pro-business attitude, state-of-the-art infrastructure and modest costs of doing business, it has become the go-to country for growth-minded entrepreneurs and multinational companies. Famous for its 7,000-year history and 300 days of sunshine, three UNESCO world heritage sites and cosmopolitan Mediterranean island lifestyle, Malta is a melting pot of old and new, local and global, work and play.

With a sophisticated ICT infrastructure that is well connected to the international backbone, a high broadband penetration, and a competitive market with the latest technologies like VoIP, Malta is able to offer the right environment for business.

Globally, the financial services industry is approaching a new digital frontier, and with a keen eye on the future, Malta is taking a fresh look at the sector and has set itself the ambitious target of providing financial firms with a technologically advanced top-tier regulatory and business environment. The clear aim is to be a global player in the regulated digital finance and fintech space.

While multinationals, global institutions and some of the world’s top-rated financial firms have located important functions on the island, start-ups and mid-tier financial services companies find Malta a particularly attractive place to grow and scale their products and services. Malta’s lower cost base, when compared with its European competitors London, Dublin and Luxembourg, mean a company’s seed capital can last longer than in the bigger and more expensive start-up hubs.

As the global finance sector is gearing up for a tech transformation, Malta, with its positive view of and support for emerging digital technologies, such as Artificial Intelligence, robotics, big data, Distributed Ledger Technologies, cybersecurity and Internet of Things, is also gaining the attention of a whole new generation of fintech entrepreneurs and global innovators.

While Malta would certainly like to grow and nurture the next unicorn, thus far global companies remain the bedrock of its International Finance Centre. The island has attracted international credit institutions such as HSBC, BNF Bank, Sparkasse Bank and trade finance specialist FIMBank and today hosts more than 20 fund administrators and almost 70 insurance companies.

Fund administrators such as Apex and Citco have a presence in Malta, along with insurance specialists Munich Re, Aon and Marsh. In addition, multinationals such as BMW, Peugeot, Citroën and Vodafone have set up captive insurance companies on the island.

Lying at strategic crossroads between Europe and Africa, Malta is a meeting point of cultures and languages at the heart of the Mediterranean. Located at the southern tip of Italy and just over 316 square kilometres in area, the Maltese Islands archipelago comprises Malta – the main island at 27 kilometres long and 14.5 kilometres at its widest point, Gozo – 67 square kilometres, and Comino which covers only 3.5 square kilometres. It takes just 45 minutes to cross Malta, reducing commuting times and increasing leisure time, although, similar to many other successful business centres, Malta suffers from traffic congestion during rush hours.

Maltese standard time is one hour ahead of Greenwich Mean Time (GMT) and six hours ahead of US Eastern Standard Time (EST) so business runs smoothly with the international community.

Malta is also a major transhipment hub with the Malta Freeport being one of the most efficient and successful freeport operations in the Mediterranean. Almost all goods being shipped through the port or being re-packaged for onward shipment do so tax-free.

Friendly relationships exist with Mediterranean rim countries and with countries representing the major investment markets worldwide. Through the bilateral agreements between Malta and the EU with third countries, and through Malta’s traditional economic links, the country strengthens its position as a business location and financial centre in the wider Mediterranean region.

The authorities have put in place a number of incentives to attract companies and professionals to the island. The island’s unique appeal, which at times combines a big city vibe with Mediterranean charm, is also playing a role in making Malta an attractive place to work and live. Residents enjoy an exceptional standard of living: 10 months of sunshine, an English-speaking population, and a Mediterranean island setting in which it is easy to find one’s way around. For years, Malta had a reputation of being a relatively inexpensive place. Although costs are rising, the overall cost of living in Malta is still lower than in the majority of European cities.

Malta enjoyed 15 years of uninterrupted growth within its financial services industry, which saw the sector grow in size and stature. Clients from all over the world have come to appreciate the abilities of Maltese practitioners. The country’s strengths should not be underestimated. The island remains one of the most competitive choices in Europe, and investors believe in Malta. The actions being taken are clearly having the desired effect as business continues to flow into Malta, which is a strong endorsement of the steps the country is taking. As financial companies the world over are strengthening their position in the financial technology race, Malta’s move into digital finance also offers massive growth potential.

While cryptocurrencies might be the poster child of virtual finance, and Malta’s decision to regulate blockchain technologies turned out to be a headline grabber, the island’s policy-makers highlight that this is just the beginning of what will be a very ambitious journey.

There is no doubt that technological disruption has and will continue to change the face of financial services. The future of finance might look very different, and today’s smart digital business models only offer a glimpse of what is yet to come. With a focus on innovative technologies, a cutting-edge regulatory environment, and a willingness to embrace digital disruption, Malta is transforming itself to rise above the competition and become a trusted partner for next-gen finance companies.