‘Libyan exodus has served Malta well’ | Joe Sammut

There is no doubt that since July 2014, when Tripoli International Airport was attacked and destroyed, the flow of Libyan nationals and the numbers relocating to Malta increased substantially.

These expatriates are not a burden, in the strict financial sense, on our national economy. On the contrary, they pay for all the services they consume without any recourse for free, subsidised or other government services generally available to Maltese nationals. Consequently, their presence in Malta impacts positively on the sectors that are normally associated with relocation, such as property sales and letting, medical and health services, education, retail and banking and professional services.

It is roughly estimated that each Libyan household unit, comprising usually between five to seven members, spends as a minimum €40,000 per annum in property rental, private education, health, day to day disbursements and other retail expenditure. This equates circa to 80 tourists if one considers this annual expenditure against the yardstick of tourists’ expenditure in Malta, as per MTA.

It can safely be stated however that the positive economic and financial impact is both visible and tangible and that it is contributing considerably to the value added of the local economy in sectors where their multiplier effect is to say the least, generous.

Libyan nationals and businesses relocate to Malta because of our advantages vis-à-vis other neighbouring and European countries. For starters and as common denominators, we speak a similar Semitic language and by and large pronounce analogous attitudes and traits. Proximity and communicability are definitely critical factors, as are also the relative ease of conducting business and the quality of education and health. 

Having said this, it seems that we are not optimizing our potential as a prospective regional financial and corporate hub given the monopolistic and at times restrictive practices employed by the banking sector as well as the lack of medium and long-term strategy in administrative matters and the consequential decision making on a day to day basis.

I consider the impetus at this juncture should be on how to consolidate and plan forward within a national economic and financial framework to avert stale, inefficient and backward looking scenarios which could erode this current advantageous positioning. Banking is an example par excellence with one bank enjoying quasi-monopolistic power. To aspire for regional hub status, Malta needs to do away with restrictive practices, provide an authentic competitive environment and improve the quality and efficiency of governmental and quasi-governmental structures, especially those which are in direct contact with expat civilians and businesses. 

Historically, it has always been proven that where restrictive practices are present, countries become stale and slide backwards. The Spanish and Ottoman examples are prime examples, the former restricting the power of the Cortes whilst the latter refuting the effects of the Industrial Revolution, including printing, with disastrous results in education especially.

On the contrary, England, with the advent of King William and his acceptance of the declaration of Rights and supremacy of Parliament in taxation and legislation, paved the way for inclusive practices which eventually brought about the Industrial Revolution, great economic and financial wealth and tangible social and civil strides forward.

I would say that from today’s vantage point, it was auspicious that we inherited British systems and practices. This model has served us well in corporate, tax and financial legislation, regulation, education and practice. This is the attraction which, if harnessed and cultivated properly, could appeal not only to Libyan nationals but also to other MENA and Gulf nationals. It is then, and only then, that we will be able to claim to be a real corporate and business centre.