Financial services sector contributing 97% to Malta’s Foreign Direct Investment
Last changed: July 22 2024 14:38
Malta’s financial services sector has shown remarkable growth, with National Statistics Office (NSO) data revealing that 97.6% of the country’s €500 billion foreign direct investment stock is now linked to this industry.
In response, Finance Malta has intensified its efforts to highlight Malta’s reputation as a reliable and prestigious financial hub.
In its Annual Report, approved at the June Annual General Meeting by FinanceMalta’s founding associations, the organization offers a detailed account of its considerable achievements and ongoing efforts to elevate Malta’s status as a leading global financial center.
The report highlights a year of robust activity and notable successes on both domestic and international stages.
FinanceMalta’s primary goal has been to enhance Malta’s international visibility, engaging regulators and private sector representatives—including its 250 members—at over 32 global events spanning various financial sectors such as funds, asset management, insurance, private wealth management, fintech, and capital markets. These events drew more than 100 delegates.
Noteworthy moments include FinanceMalta’s presence at Money 20/20 Europe under its “inMalta” brand and the successful hosting of the prestigious “Malta – A Global Financial Services Platform” networking event at London’s historic Guildhall, which attracted over 600 international delegates.
Additionally, FinanceMalta has encouraged a focus on sustainable finance by launching a website dedicated to keeping practitioners informed about the latest developments and best practices in this area.
The organization has also advanced financial literacy across various demographics, bringing together numerous stakeholders to evaluate the landscape of approximately 70 active projects and identify areas for improvement.
Throughout the year, FinanceMalta has bolstered its digital presence with a regularly updated website and the “Insight Newsletter,” expanded its social media reach, and produced a record 44 episodes of the #FinTalks podcast series.
Currently, Malta’s financial services sector employs around 18,000 people, reflecting a significant increase of 7,000 since 2018.
The growth of Malta's financial services sector has had a profound impact on the local economy in several key ways:
1. Job Creation: The sector now employs approximately 18,000 people, marking a significant increase of 7,000 jobs since 2018. This expansion has provided numerous employment opportunities across various roles, from financial analysts to compliance officers, and has contributed to reducing local unemployment rates.
2. Economic Growth: The influx of foreign direct investment (FDI) into the financial services sector has contributed substantially to Malta’s economic growth. With 97.6% of Malta’s €500 billion FDI stock linked to this industry, the sector plays a crucial role in driving the country’s economic expansion.
3. Increased Revenue: The sector’s growth has led to higher tax revenues for the Maltese government. This additional revenue supports public services and infrastructure, contributing to overall economic stability and development.
4. Business Development: The expansion of financial services has spurred growth in related industries, such as real estate, legal services, and technology. This interconnected development supports a broader economic ecosystem, creating a multiplier effect that benefits various sectors.
5. Enhanced International Reputation: By establishing Malta as a prominent international financial center, the sector has boosted the country's global reputation. This enhanced visibility attracts further investment and business opportunities, fostering a positive economic outlook.
6. Innovation and Technology: The emphasis on fintech and sustainable finance has driven innovation in the local economy. Malta’s focus on these areas has stimulated technological advancements and attracted tech-savvy professionals, contributing to the country's position as a leader in financial technology.
7. Financial Literacy and Education: Efforts to promote financial literacy have increased public awareness and understanding of financial matters. This enhanced financial literacy can lead to more informed financial decisions by individuals and businesses, contributing to overall economic stability.
8. Tourism and Events: Hosting international financial events and conferences has boosted local tourism and hospitality sectors. The influx of international delegates and visitors contributes to local spending and supports the broader economy.
Overall, the growth of the financial services sector has had a substantial positive impact on Malta’s local economy, driving job creation, economic growth, and international recognition.
Contact IMEX Malta
