Malta enjoys a balanced vibrant economy in which manufacturing makes up 17% of GDP and financial services 13%. This is a remarkable achievement given that little more than 40 years ago, when Malta gained independence from Britain, economic activity was minimal.
Foreign direct investment is a key driver of the Maltese economy and Malta is highly effective in attracting such investment. In fact, the diversity of economic activity in Malta is most impressive. Activities across numerous sectors, including pharmaceuticals, mechanical engineering, electronics maritime products and yacht services, biomedical equipment, rubber, plastics, packaging, and security systems are all undertaken on the island. Malta is also a chosen location for film production, back office services, call centres and back yard services for gas and petroleum companies operating in the region, as well as activities related to the co-ordination of international logistics, marketing, training facilities and financial services.
Malta is also strong when it comes to international trade. Its competitive edge as a supplier is not merely its proximity to Europe, North Africa and the Middle East, but also its reputation for quality and reliability. Maltese companies tend to be large enough to cope with substantial orders, yet small and flexible enough to care for their clients and respond to their requirements with short lead times and quick deliveries.
Testament to Malta’s sound economic principles and attractive investment opportunities is the country’s ranking in the top 20 global countries most likely to sustain economic growth over the medium and long term. Malta ranked 6th globally in inward Foreign Direct Investment (World Investment Report 2007 - UNCTAD).
The political and social stability is also another distinguishing feature of Malta. The 2005 index on the quality of life, as drawn up by the Economist Intelligence Unit, ranks Malta 28th out of 111 nations (immediately followed by the United Kingdom and only just preceded by Germany, France and Belgium). Among the factors taken into consideration were the per capita GDP, political and social stability, security, employment, the degree of political and civil freedom and the average income.
Updated: 28th March 2008
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