Dubai-based developer Damac, a giant player in the market, is keeping tabs on Malta for a possible expansion of its international investment portfolio, according to several reports.

Prime Minister Joseph Muscat held a private meeting with Damac chairman Hussain Sajwani last week, where he also received a tour of the island.

Media reports say that the pair discussed a further increase of tourism growth and Malta's historical appeal as a business-friendly location.

Sajwani said in a statement: "Malta presents an ideal mix of investment benefits that make it a very attractive place for luxury and hospitality developers looking to expand into the EU zone.

"Thanks to favourable tax incentives for foreign investors as well as a stable government and leadership that continue to drive economic growth through the tourism sector, Malta is a destination that we are keeping an eye on as we continue to explore expansion opportunities there."

The Dubai-based company gained international fame after it teamed up with Trump Organisation to build the first and only Trump International Golf Club in the Middle East.