Dubai investors eyeing Malta

[LRE]

Dubai investors eyeing Malta

By Saifur Rahman, Business Editor
Published: May 07, 2009, 22:51


Dubai: Investors from Dubai are negotiating with government officials of Malta on a number of assets and projects in the Mediterranean island state, despite the current financial situation, a senior official said.

Dubai has already become a leading investor in Malta's economy with investments totalling near $1 billion (Dh.3.67 billion) over the last few years including the $300 million SmartCity project, 500 million euro in International Hotel Investments (IHI) Group which owns Corinthia Hotels, as well as Tecom Investments' acquisition of a stake in Maltese telecom operator Go, with many more to come.

"There are other projects that we are negotiating with Dubai and other Middle Eastern Countries as our partnership with the Gulf is very valuable to us," Alan Camilleri, chairman of Malta Enterprise - the government body to promote inward investment in Malta - told Gulf News.

"We are looking at strategic partnerships on projects in our core areas of interest that include financial services, maritime services, logistics, information and communications technology, pharmaceuticals, education and tourism sectors."

He, however, could not give any details on the individual investment proposals. Malta, a maritime services hub, has a large drydock, a harbour, cruise services facilities as well as a strong maritime resource base.

Trade between the two countries, although still at a low level, jumped more than 80 per cent over the last four years to about 21 million euro in 2008.

Malta Enterprise set up an office in 2003, which was also upgraded to be the country's Consulate General.

Camilleri said his office is planning to tour the Gulf states to promote trade and investment in the coming months.

"Despite the current global situation, we are looking at the Gulf to promote economic cooperation," he said.

Relations between the two economies have strengthened since the opening of Malta Trade Office in Dubai in 2003.

Dubai's carrier Emirates provides a solid connection to the Maltese business community in reaching out to the Gulf, South Asia and Far Eastern businesses. Dubai has become a major source for consumer goods in Malta.

Construction of SmartCity, a project that is expected to transform the Mediterranean island state's information technology sector to a new level, has already begun. Tecom has already registered the company in Malta. Once completed, it will create between 5,000 to 8,000 jobs.

Ranked 6th globally for attracting foreign direct investment according to the United Nation's World Investment Report 2007, Malta attracted 696 million euro worth of investment in 2007.

"It takes a relatively short time to register a company.

"Despite the global financial meltdown, Malta remains an attractive destination for investment as we offer cost-effective alternatives to companies that are looking at reducing costs.

"Costs of setting up and doing business in Malta is much cheaper, at least 60 per cent, compared to Northern Europe. So, it makes more economic sense to relocate to Malta, where one could benefit from political, economic and social stability."

Office rents are as low as 50 euro per square metres per annum.

Camilleri said his country's foreign investment rules are very relaxed. "However, we will look into further liberalising the investment rules, if need be," he added.

Malta, which joined the European Union in 2004, has also become part of the Schengen visa regime, which makes it easily accessible, especially for investors from the Gulf.


http://www.gulfnews.com/business/Investm...11456.html