1. Malta – A Gateway to European Investment Opportunities Malta – A Gateway to European Investment Opportunities March 2010

2. 1.FinanceMalta – An Overview 2.Malta’s Financial Services Industry - An Overview of its Evolution 3.Growth Sectors - Business Opportunities 4.Key Success Factors Agenda

3. 1. FinanceMalta – An Overview

4. About FinanceMalta  FinanceMalta set up just over two years ago as a public- private partnership to promote Malta’s international financial services centre.  Board of Governors - representing all industry associations and the Government of Malta.  FinanceMalta’s Core Remit - Strengthen Malta’s financial services brand through a comprehensive communications program. - create Networking opportunities for its members.

5. 5 2.Malta’s Financial Services Industry An Overview of its Evolution

6. 6 Vision for Malta’s Financial Services Industry Vision for Malta’s Financial Services Industry - a strong economic enabler International Corporate & Trusts Legislation Offshore benefits within a UK Regulatory culture. Overhaul of Malta’s financial, legal and regulatory framework - “onshore Malta” response to Globalization & EU membership. 1988 VISION 2015 VISION 2015 Malta’s Financial Services Industry - One of the Main Economic Enablers EU Membership Malta’s legal and regulatory framework meet EU standards 19942004 Strong Growth in the Financial Services Industry GDP contribution increases to 12% Employs 7,000 people 2010

7. 7 3. Growth Sectors and Business Opportunities

8. 8 Impact on Malta of the Global Crisis   2008 – 2009 turbulent years for international financial services   Malta’s open market economy not immune to recession – impact on tourism and exporting sectors   Impact on Malta’s economy relatively mild   Resilient banking sector is in good shape and credit is available - driven by a culture of accountability and transparency.   No bank failures

9. 9 Newly Registered Companies

10. 10 1. Funds Industry

11. 11 2. Insurance Industry Global firms have chosen Malta for both captive and reinsurance business providing services in 27 EU countries. Harmonised EU legislation and regulation - passport business into other jurisdictions. 13 insurance managers and 8 Captive Insurance or “affiliated” insurance companies operating from Malta. The number of managed (re)insurers - almost doubled over the last 2 years from 20 to 38.

12. 12 3. Banking Industry Increased Presence of International Banks 12 Australia Austria Bahrain Belgium Finland France Greece Netherlands Germany Saudi Arabia Turkey United Kingdom Kuwait 22 institutions have demonstrated 10.5% growth in assets to €41.9 billion in 2008. Portugal

13. 13 Comprehensive Range of Financial Services Trade Finance and Treasury Operations Presence of Financial institutions providing specialised banking services. International Banking Provision of general banking services. International Group Holding Companies Setting up of International Group Holding Companies to service business in the EU and North Africa. Investment Funds Licensing of Investment Funds Licensing of Fund Management Cos. providing investment management to both Malta domiciled and international Funds Insurance Operations Increased presence of international insurance management companies providing international insurance management services out of Malta. Providers of Investment Services Setting up of Financial Institutions providing an array of investment services. A Hub for International Financial Services

14. 14 4. Key Success Factors

15. 15 Why Malta – 3 Core Reasons 1. 1.Single Responsive Regulator - Malta Financial Services Authority 2.Access to the European market and proximity to the southern fascia of the Mediterranean 3.Operating Environment - Human Resources – multilingual – strong work ethic - Presence of Major Law/Audit Firms - Cost Competitive Jurisdiction

16. International Attestations IndicatorsSourceRankingCountriesScope Internal Market Scoreboard EU (2009) Joint 1st 27Administration and Transposition of Directives Global Financial Centres Index 3 City of London Report (2008) 4545 66 Malta as a jurisdiction likely to increase in importance The Centre where most organisations are likely to set up new operations in the next 2/3 years Global Competitiveness Report World Economic Forum (2009-10) 13 27 13 18 15 12 133 Financial Market Sophistication Technological Readiness Soundest Banking Sector Ease of raising money through local share issues Effectiveness of stock market regulation Strength of auditing and reporting standards

17. International Attestations Tax and Misery Report Forbes (2008) 127Most attractive country in the EU - taxes and social security contributions paid out by companies 8th Benchmark Measurement of European eGovernment services CapGemini report prepared for the European Commission (2009) 131Online Sophistication and Full Online Availability World Investment Report UN Conference on Trade and Development. (2007) 637Malta described as a “Frontrunner” for High FDI Potential

18. Further Information Website: www.financemalta.org Contact : 00356 21 224525 Mr Kenneth Farrugia - Chairman - chairman@financemalta.org Dr Bernice Buttigieg - Head of Administration - bernice.buttigieg@financemalta.org Mr Bruno Lecuyer - Head of Business Development - bruno.lecuyer@financemalta.org Visit Malta

19. 19 Thank You