Direct Investment in Malta and Abroad: January-December 2025

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Salient Points

  • At the end of 2025, net inward foreign direct investment position in Malta stood at €493.1 billion, while direct investment abroad amounted to €463.9 billion.
  • The main contributors to both inward and outward foreign direct investment were financial and insurance activities.
  • During the year 2025, foreign direct investment flows in Malta and abroad amounted to €10.7 billion and €12.9 billion respectively.

Commentary

As at the end of 2025, the stock position of Foreign Direct Investment in Malta stood at €493.1 billion, while Direct Investment abroad amounted to €463.9 billion.

Foreign Direct Investment (FDI) in Malta

During 2025, net inward FDI flows in Malta amounted to €10.7 billion (Table 1). The main contributors to total FDI flows were financial and insurance activities, with EU partners taking the largest share (Table 2).

At the end of 2025, the net inward FDI position stood at €493.1 billion, marking a rise of €13.4 billion compared with the end of 2024. Financial and insurance activities accounted for 98.3 per cent of the total FDI position (Table 3).

Direct Investment abroad

During 2025, net outward direct investment flows totalled €12.9 billion, mainly in the form of equity and investment fund shares/units (Table 4).

Net outward direct investment position reached €463.9 billion in December 2025, an increase of €11.0 billion compared with 2024. Financial and insurance activities accounted for 99.5 per cent of the total outward FDI, with most investment directed toward partners within the EU (Table 6).

Highchart

Tables

Methodological Notes

1. The collection, compilation and presentation of both the International Investment Position (IIP) and the Balance of Payments (BoP) statements of Malta fall under the responsibility of the National Statistics Office (NSO), with the co-operation of the Central Bank of Malta (CBM). Direct Investment is extracted from both statements, and compiled in accordance with the international guidelines set out in the sixth manual of the International Monetary Fund (BPM6).
 
However, the Direct Investment news release is presented on a directional basis, ie. inward and outward, rather than on an asset and liability basis. The statement incorporates data relating to special purpose entities which are classified under financial service activities. This inclusion has brought about significant changes in the FDI statement.
 
2. Direct Investment is defined as “a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy.” (BPM6).
 
a. Direct Investment is sub-divided into two categories:
●  Foreign Direct Investment (FDI) in Malta – where a foreign investor owns 10% or more of the ordinary shares (or voting power) of an enterprise in Malta; and
 
●  Direct Investment Abroad – where a Maltese resident entity (or an individual, government or association) owns 10% or more of the ordinary shares of an enterprise in another economy. These companies can be subsidiaries, affiliates or branches.
 
b. Direct Investment is made up of three basic components:
● Equity and investment fund shares/units – comprising equity investment in subsidiaries, associates and branches. Capital contributions (e.g. provisions of machinery) and purchase of immovable property are also classified under equity capital. Also consists of the direct investor’s share of earnings not distributed as dividends by subsidiaries and associates; and earnings that branches do not remit to the direct investor. Losses are regarded as negative reinvested earnings.
 

● Debt Instruments – including inter-company transactions such as borrowing and lending of funds; and trade debits and credits between direct investors and direct investment enterprises. Transactions between enterprises in different economies that share the same direct investor are also considered as direct investment and included under debt instruments.


3. Direct Investment flows include transactions occurring during a particular period. Besides accumulated flows, the Direct Investment Stock Position takes into account any market value revaluations, reclassifications and exchange rate changes prevailing at the end of the reporting period.

4. The primary data source used in the compilation of Foreign Direct Investment (FDI) statistics is the Tax Index of Financial Data (TIFD), supplemented by survey data.  Together, these sources provide coverage of all sectors of the Maltese economy.

5.  Data are to be considered provisional. 
 
6.  More information relating to this news release may be accessed at:
 
7.  References to this news release are to be cited appropriately. For guidance on access and re-use of data please visit our dedicated webpage.
 
8.  A detailed news release calendar is available online.
 
9.  For further assistance please submit your query through our online request form.
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