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Direct foreign investment in Malta €11.8 billion for first half of 2010
At the end of June 2010, the stock position of Foreign Direct Investment in Malta stood at €11.8 billion while that of Direct Investment abroad stood at €1.2 billion.
25 January 2011, 12:00am
Rachel Zammit Cutajar
Rachel Zammit Cutajar
1 min read
Foreign Direct Investment (FDI) flows in Malta from the rest of the world during the first half of 2010 amounted to €551.4 million. This corresponds to an increase of €305.5 million over the corresponding period in 2009. This is mainly attributable to a rise of €649.9 million in equity capital invested in Malta which was partly offset by a decrease in reinvested earnings amounting to €305.8 million.
During the first six months, 15.4% of the net FDI inflows in Malta originated from European Union Member States (EU27). During the corresponding period in 2009, the EU27 contributed 46.3% of the net inflows in Malta.
During the first half of 2010, enterprises involved in financial intermediation contributed €475.2 million (86.2%) of the net FDI inflows while in the comparative period of 2009, this sector contributed €102.5 million (41.7%).
The stock position of FDI in Malta at the end of June stood at €11.8 billion. The EU countries contributed 70.4% of the FDI stock position in Malta as at the end of June 2010.
The net direct investment flows abroad during the first half of 2010 amounted to €55.3 million, while flows reported during the corresponding period of 2009 amounted to €32.5 million. 87% of direct investment abroad took place within the EU.
The stock position of direct investment abroad at the end of June 2010 amounted to €1,213.3 million, an increase of €169.3 million over the position at the end of June 2009. The direct investment stock position within the EU stood at €762.1 million, or 62.8% of the total stock position. 41.7% of the outward FDI stock position at the end of June is attributable to the financial intermediation sector.
Rachel Zammit Cutajar graduated in economics from the University of Malta...
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This is indeed good news for Malta, and it is one which looks as though it will continue well in to the current decade. As with all investors' concerns though the consistency of the attitude of the Government is always upper-most in the decision-making process.
You may have been aware therefore that there is a major development on the way to Malta by means of a British company with a proposal to build two bioethanol plants in the islands with an inward investment in two stages amounting to over €300 million.
The information on these is well published in the European press (and the EurActiv and elsewhere) and records that the first project will be nearly €100 million and produce around 85+ million litres of bioethanol for transportation uses either in Malta or for export and to have it fully operational in two years. The Company says that they will need at least 140 permanent staff (Technicians and apprentices as well as a small number of Degree qualified personnel) and they are saying that they will be looking totally to meet the needs in Malta/Gozo and are prepared to pay highly for the right persons. The second project is over twice the size and at around €170 million (possibly more) as a second tranche of inward investment that will produce at least 230 million litres of ethanol when fully operational by 2015/2016. Again it will need a permanent staff and here it suggests that at least 250 or so will be required.
To put this fuel in perspective this is equivalent to over half of all that needed for cars and vans on the islands. It would also help Malta in its desperate position with respect to the forthcoming €2000 million fines that will be levied against it for failing to address greenhouse gas emissions by 2020 for inaction.
This is the style of good news that Malta so desperately needs to fulfil the ambitions of the technical people that were the mainstay of the economy and must be helped onwards by the Government.
Let's hear it again for Malta and this Company.
