• About Malta

As a stepping stone between Europe, the Middle East and North Africa, Malta has been at the crossroads throughout its existence.  Malta’s rich and diverse culture reflects the influences of the Phoenicians, Carthaginians, Romans, Arabs, Normans, Spanish, the Knights of the Order of St. John, Napoleonic and British rule, all of whom occupied Malta during different periods of its history.  During World War II, King George VI awarded Malta the George Cross for its heroism in the face of Hitler's bombings.  In light of this heritage, Malta has been referred to as an open-air museum where a visitor may find prehistoric ruins, catacombs, baroque cathedrals, fishing villages, palaces and walled cities.

Malta’s capital, Valletta, was built by the Knights of St. John who arrived in Malta in 1530.  When Spanish Emperor Charles V gave the Island to the Knights in 1530, he required a Maltese falcon as payment for the annual rent.  The Knights ruled Malta for 268 years during which time they successfully defended Malta from the Ottoman Empire in 1565, and built churches, palaces and monuments.  The city of Valletta was built on a grid iron pattern with limestone fortifications that still surround the city today.  Valletta has been described as "a city built by gentlemen, for gentlemen."

Malta is an established parliamentary democracy with a population of approximately 372,000.  The official languages are Maltese and English.  English is spoken fluently by virtually all Maltese citizens and is the language primarily used in the business sector. In addition to the official languages, most Maltese people are fluent in Italian and knowledge of French and German is common.  The currency of Malta is the Maltese lira (Lm) and the exchange rate as of April 15, 1998 was GBP 1.514 / USD 2.55: Lm 1.

The influence of Britain's rule of Malta for 165 years can be seen in Malta’s legal and political system.  Malta also enjoys a strong relationship with Europe as a member of the Council of Europe and a signatory to an Association Agreement with the European Union (EU).

Since achieving independence from the British Crown in 1964, Malta has been committed to the development of a strong and stable economy.  The economy of Malta is largely based on the manufacturing sector, particularly high technology industries, and tourism.  There are a number of large international manufacturing companies which have been established in Malta.  The presence of an advanced telecommunications infrastructure and a highly educated professional community supports the success of the economy.  Building on the strengths of its economy, Malta is developing as an international financial services centre.

As part of this programme Malta has developed a regulatory framework that integrates the most effective aspects of investment management regulation from around the world.  This creates an attractive business climate for the financial services industry and establishes appropriate regulatory structures to oversee international trade and the financial sector in Malta.  The Maltese financial services regulations establish, inter alia, a framework for the organisation and regulation of investment services and Collective Investment Schemes.  This legislation has incorporated standards equivalent to those of the EU with respect to the prevention of money laundering and insider dealing and conforms in most respects to the EU standards for banking and investment management regulation.  In order to address the concerns of the international business community, its regulations balance the need for confidentiality with the need for regulation.

Amendments to the tax laws complement the financial services regulation and are intended to support the development of Malta as an international financial and business centre.