Roughly 200 yachts worth some €400 million have been sold in Malta over the past five years, one of the country's leading brokers has revealed, underscoring the island's growing role as a Mediterranean yachting hub.

Malta's standing as a leading jurisdiction for yachting and yacht finance came under the spotlight at a Malta Business Network event held earlier this month, bringing together industry leaders to discuss the future of one of the country’s most internationally connected sectors.

Moderated by advocate and MBN director Tonio Fenech, the panel featured Anthony Galea of AG Advisory, Willem Steenkamer of St Julian's Finance, Angie Vassallo of Bank of Valletta, and Nicholas Travers Tauss, who heads the Malta office of Fraser Yachts and leads Tauss Holdings.

Opening with a presentation on the industry's evolution which was based on publicly available data as well as informal industry estimates, Dr Galea defined superyachts as vessels exceeding 24 metres, noting there are around 11,000 worldwide, typically valued between €5 million and €10 million. The demographic profile of owners is shifting, the average age dropping from 60 to 45 as younger buyers enter the market.

A €10 million yacht might charter for €100,000 to €130,000 per week, he said, highlighting charter as a key entry point to the industry.

Notwithstanding geopolitical tensions, the outlook remains positive, Dr Galea argued, pointing out that the COVID-19 period produced the industry's strongest two years on record and that demand from that surge has still not been fully recovered. He suggested at least 20 to 30 Maltese families could afford a €10 million yacht, implying significant latent domestic demand.

Mr Travers Tauss presented consolidated figures showing roughly 200 yachts worth approximately €400 million changed hands in Malta over the past five years.

"I'd be surprised if we missed 10 per cent," he said, noting that an average transaction size of €2 million is skewed by the higher unit volumes of mid-sized vessels.

Mr Steenkamer emphasised the resilience of the yacht finance market, particularly in the above-€2 million segment, but questioned whether Malta can absorb further growth. He noted many clients prefer not to appear on a yacht's registration, opting for leasing structures where St Julian's Finance retains ownership. Ms Vassallo confirmed Bank of Valletta finances both Maltese and foreign owners, structuring bespoke solutions across multiple jurisdictions.

Asked how Malta can compete more effectively, Mr Travers Tauss identified the jurisdiction's nimbleness and capacity to adopt new legislation quickly as key strengths.

"Malta's dominance has been about being quick to adapt to changes in the frameworks," he said, though Malta's size – in berths, regulator capacity and human resources – remains a constraint.

Dr Fenech discussed how Maltese legislative developments in the field of asset finance have anticipated market practice in the area and provide a sound legal infrastructure for the yachting industry to thrive. The discussion also touched on regulatory friction, with a question from the floor highlighting duplication of work arising from compliance procedures designed to mitigate banking risk.

The Malta Business Network event is part of an ongoing monthly series of informational and networking opportunities that are themed around the island's key economic sectors.