Financial services account for 70% of foreign investment in Malta

The National Statistics Offfice said that as of December 2013, the stock of foreign direct investment in Malta was estimated at €9.6 billion, with 70.6%  originating from financial and insurance enterprises.

This amounts to a decrease of €3 billion over the position as at end 2012. Geographically, the EU is the largest contributor to Malta’s inward foreign direct investment, with €6.4 billion, or 66.2 per cent of total FDI.

There was a net decrease of €1.6 billion in FDI flows, whereas the corresponding period in 2012 showed an increase of €0.1 billion. These were mainly the result of decreases in equity capital, mainly from entities involved in financial and insurance activities.

During 2013, direct investment flows decreased by €13.9 million, compared to a decrease of €35.6 million during the previous year. This was mainly the result of a decrease of €4.5 million in equity capital and an increase in payables to direct investors of €21.5 million.

In terms of stock positions, in December 2013 direct investment abroad by resident enterprises was estimated at €1.1 billion, of which €0.6 billion were invested in the EU. As in previous years, direct investment abroad was predominantly in financial and insurance enterprises, these accounting for over 47.3% of total stock as at end December 2013.