Malta’s appeal to international investors dwindles as a result of its FATF grey-listing

In terms of appeal to international investors, Malta is now at an all-time low.

This follows the FATF grey-listing, with just 37% of international investors considering Malta favourable for FDI. A staggering 46% find the island unappealing. The data were disclosed by the EY Malta Attractiveness Index, which found that during the previous two years, 40% of respondents shifted from considering Malta appealing to either ‘no’ or ‘don’t know.’

Malta’s FDI attractiveness appears to have been declining since 2016, although the downward spiral intensified after 2019. At the time, 77% of respondents said Malta was appealing for FDI. That proportion has now risen to 37%. The survey was conducted shortly after Malta was included in the FATF’s grey list of countries. When asked what might be done to improve this situation, respondents referred to reputation, governance, talent base enhancement, and addressing the grey listing as soon as feasible.

Notwithstanding the fact that 77% of current FDI businesses are still considering a future in Malta, there has been a rise in no answers. 84% of investors feel that grey-listing has an influence on Malta’s capacity to be recognised as a credible business location. Another huge 55% believe that grey-listing will make conducting business in Malta more difficult.