New York (HedgeCo.Net) – The financial services industry in Malta is nearing a €10 billion ($16.6 billion) milestone. It currently has €9.79 billion in net asset value spread across 620 hedge funds, 133 fiduciary licences, 28 international banks, 66 insurance operators, 26 fund administrators, and six custodians. Malta was recently selected as Europe’s favorite location for hedge funds.
“We are seeing substantial demand from a number of hedge fund managers who are choosing to shift their operations to Malta in response to both the rising costs of business and the growing regulatory burden in their domicile,” FinanceMalta chairman Kenneth Farrugia said at a recent networking event. According to the Malta Financial Services Authority, 73 per cent of Malta’s borrowings and deposits originating from overseas. In 2013, the finance sector supported close to 10,000 jobs in Malta, and the gross value added contribution the sector made to the economy both directly and indirectly is estimated to be moving towards 15 per cent of GDP.
“Malta is emerging alongside London, Geneva and Luxembourg, as another European location for fund managers keen to maintain flexible operating arrangements. Positive coverage by key media such as CNBC, Bloomberg and the Financial Times together with professional publications such as Hedge Fund Review reinforces this interest, and I cannot stress enough that our selection by industry professionals as Europe’s favourite hedge fund location is a significant milestone and achievement for the local industry, the result of several years’ hard work.” Farrugia concluded; “Malta is becoming a destination of choice for individuals, assets and business and provides one of the highest quality lifestyles in the region.” The island of Malta is a small independent nation state in the centre of the Mediterranean, just 93 km South of Sicily (Italy) in Southern Europe. Malta is an island nation that consists of three islands: main island Malta, Gozo and Comino. The country’s official languages are Maltese and English. Malta’s capital city is Valetta, which is centrally located on the island’s North coast and has the island’s largest harbor.