Malta Stock Exchange expanding its Horizons
The Malta Stock Exchange (the "MSE") will be expanding their horizons and exploring new areas of investments geographically as well as financially, according to recent announcments. The Malta Stock Exchange has announced new working committees.
The MSE is instroducing three new committees and a new platform.It will be implementing new products directed to the local and international markets. Chairman of the MSE, Joseph Portelli, has announced the intentions to create three working committees in order to attaract and innovate new business products; the Islamic Finance Committee, the China Listing Committee and the Real Estate Investment Trust (REIT) Committee. The Islamic Finance Committee will be focusing on attracting Islamic companies for listing in Malta where they can enjoy passporting rights within the EU. The second Committee will be the China Listing Committee, with the purpose to attract Chinese companies and such investment, whereas REIT Committee will explore the feasibility of introducing these real estate securities to the Maltese markets to help local companies finance existing and planned real-estate projects.
Mr Portelli also announced that a new business initiative is expected to be launched in quarter 1 of 2016. “Prospects” will be introduces as a domestic capital market platform designed to cater for Small and Medium Sized Enterprises (SMEs) looking to raise cost-effective capital in the area of 3 to 5 million Euros. The MSE considers that Prospects can also address succession planning concerns.
Malta financial sector maintains a robust growth, generating approximately the 13 per cent of GDP in 2014. The asset management sector has experienced fast growth driven by new fund set-ups and re-domiciliation’s from non-EU jurisdictions to a total of over 600 investment funds with a combined net asset value of approximately €10 billion. Key international insurance operators in Malta number 60, and there were a total of 27 credit and 33 financial institutions as at 2014. The national Statistics Office shows that 98 per cent of all foreign direct investment in Malta in 2014 came from financial services and insurance, for a total of €139 billion out of €142 billion.
This healthy and fast growing financial sector creates the perfect timing for Malta to delve into new financial opportunities.
