FinanceMalta’s 4th Annual Conference in May 2011 put the strong growth of the financial services industry into perspective. There is no doubt that the EU membership has brought its own benefits for the industry and the economy. A shallow economic downturn helped too. So did Fitch’s affirmation in late 2010 of Malta’s Country Ceiling as an AAA, a solid enough rating for the euro area. This and other rating affirmations continue to reflect the country’s smooth passage through the recession with (as Fitch put it) limited fiscal damage, demonstrable financial sector resilience and signs of a strong economic recovery.

Malta’s economic stability has given international financial business reasons to be cheerful. In fact, the World Economic Forum’s Global Competitiveness Index places Malta at No.10 for the soundness of its banks and No.11 for financial market development out of 139 countries. Malta has remained resolute in focusing on building a strong position for itself as a financial services centre in the European market against other, more well established jurisdictions like Luxembourg and Ireland. To that end, this newly acquired jurisdictional reputation has been earned, not given.

As if to confirm this, the sector grew by over 30 % last year confirming its strong fundamentals and its potential as one of Malta’s main economic drivers, providing jobs for more than 9,500 people. On that score, the Gross Valued Added (GVA) in the Financial intermediation sector increased, too, to 7.5 % in 2010 or approximately Euro 66,000 per person, up from Euro 47,000 per capita per employee or 5.5 % of GVA in 2009. A total of 165 new authorisations were issued by MFSA during 2010 in all sectors including banking, insurance, pensions, investment services and trust services. And two new companies were licensed to carry out banking activities as credit institutions, IIG Bank (Malta) and FCM Bank Ltd. Deutsche Bank also had its license upgraded to a credit institution, bringing the total number of licensees to 25 in 2010.

The rewards of a strong regulatory framework clearly show through in the numbers despite the lag in growth of other larger European economies that suffer the ignominiousness of sovereign debt. To date, more than 400 funds have been registered in Malta with a net asset value of Euro 8 billion – a 13.5 % growth, year-on-year with re-domiciliations from Cayman, British Virgin and Channel islands becoming more evident. 102 investment services licenses have been granted – up 20 % year-on-year. Over 77 % of funds that were authorized in Malta are now serviced on the island by the financial services industry. Double Taxation Agreements amounted to 57 with another 9 currently being negotiated or ratified across all the major international markets that Malta needs to do business with.

This flight to quality is partly attributable to another factor; FinanceMalta’s ambassadorial role of representing both the industry and the country in overseas markets, building on its objective to generate awareness of Malta’s talents, its stable economy and a firm but flexible Regulator. Having set the pace for delivering Malta’s vision as a reputable EFC, FinanceMalta has been building on last year’s initiatives to market the jurisdiction by organising and participating in some 40 local and international events with a strong focus on new markets like China, Asia, Africa and the Gulf.