Finance dominates Malta’s €12 billion FDI

Just over 80% of foreign direct investment in Malta originates from financial and insurance activities, the National Statistics Office said in its annual balance of investment.

FDI from this source increased by €376 million, bringing FDI to a total €12.3 billion in 2012, but net FDI flows were estimated at -€33.3 million, a decline of €216.2 million when compared to 2011. This was mainly the result of decreases in equity capital and increases in receivables from direct investors. These changes were partly counterbalanced by an increase in reinvested earnings of €134.2 million over those recorded in 2011.

Geographically, the EU is the largest contributor to Malta's inward foreign direct investment, with €8.5 billion, or 68.8 per cent of total FDI. Germany accounted for 40.9 per cent of total FDI in Malta.

Direct investment flows abroad during 2012 decreased by €75.6 million compared to an increase of €2.2 million during 2011. This was mainly the result of a drop of €48 million in equity capital coupled with an increase in payables to direct investors of €64.5 million.

In terms of stock positions, direct investment abroad by resident enterprises as at end December 2012 was estimated at €1.1 billion, of which €529.6 million was invested in the EU. As in previous years, direct investment abroad was predominantly in financial and insurance activities, which accounted for 51.2 per cent of total stock as at end December 2012.