Economic Overview

At just 316 sq km, Malta’s small size belies its rich history as a hub of trade and commerce. Today, this island nation builds on that legacy as a Mediterranean business centre known for its welcoming approach and excellence in key sectors.

Malta’s financial services sector is a cornerstone of its economy, catering to a diverse international clientele. Meanwhile, its gaming industry thrives under the globally recognised Malta Gaming Authority licence, which is widely regarded as the gold standard, with hundreds of licensed companies contributing significantly to the local economy.

The shipping and aviation registers are experiencing steady growth, fuelled by increasing investment in superyacht and aircraft management and servicing.

Similarly, pharmaceuticals, aquaculture, ICT, chemical manufacturing, and other knowledge-based industries continue to expand, with a recent surge in merger and acquisition activity positioning these sectors for further growth in foreign markets.

The domestic economy is similarly diversified, with tourism, manufacturing, and real estate the largest but far from only contributors to its rapid growth.

The almost complete absence of natural resources means that Malta’s development has been closely tied to the cultivation of its human resources, with significant investments over the years resulting in a highly skilled workforce supported by a state-sponsored education system and extensive dialogue between industry and academia.

Over the last decade, demand for labour to meet the needs of its growing economy outstripped the supply available from the indigenous population, prompting a migratory wave that has seen the resident population increase by 28 per cent, again supported by close cooperation between economic actors and state institutions.

This nimble approach to policy making has paid off handsomely for Malta. Successive governments have exhibited remarkable economic nous in carving out and nurturing new productive niches that play to the country’s strengths while meeting the high standards expected of a European Union member state. 

This innovative yet stringent approach to economic planning has ensured that each of Malta’s business sectors has demonstrated admirable stability, beyond what one might expect from a small and open economy exposed to the vagaries of shifting global markets.