Malta is taking new steps to enhance its bilateral relations with the Gulf states. In 2017, Malta will take up the EU Presidency for the first time and it plans to include a Middle Eastern dimension to it. Malta signed a double taxation treaty with the UAE on 13 March 2006, with Qatar on 26 August 2010 and Saudi Arabia on 4 January 2012. In 2012, Malta opened a consular office in Kuwait and its consular office in Dubai has been open since 2003. In 2013 Malta's Chamber of Commerce launched a Middle East Business Council to open up potential opportunities to business and investment between the islands and the Arab states, focusing mainly on Gulf countries. This UAE influence is evident even in Malta's business park, SmartCity, as it is modeled very much on Dubai internet city. SmartCity, set to host global IT and communication firms, mirrors Dubai's freezones architectures such as fountains, plazas and lakes.
According to Klaus Pedersen, internationalization manager at Malta's Chamber of Commerce, Malta has the potential to be the future Dubai of Europe. This step towards emulating Dubai's success is considered 'positive' by the minister for the Economy, Investment and Small Business, Christian Cardona. Malta can serve the Middle East for a number of purposes yet its biggest advantage is its location in reference to bilateral trade. Malta's financial services regulatory authority, Malta's Financial Services Authority (MFSA) is considered to be strong yet flexible and thus creates an easy and secure way of doing business.
Malta's strategic geographical location along with its favorable tax conditions and resilient ever growing financial sector makes it an attractive country for foreign direct investment and numerous financial institutions. Both the Middle East and Malta have much to gain by increasing their co-operation with each other and creating stronger bilateral relations.
